US Metro Bancorp Announces First Quarter 2021 Financial Results

Rhea-AI Summary

US Metro Bancorp (USMT) reported a robust financial performance for Q1 2021, earning $2,288,000, a 123% increase from $1,025,000 in Q1 2020. The EPS rose to $0.14 from $0.06 a year earlier. Loan growth was significant at $194.7 million (47%), influenced by $88 million in PPP loans, while deposits surged $243.4 million (47%). Total assets reached $859.7 million. Despite the pandemic, the bank's capital and liquidity remain strong, positioning it well for future challenges.

Positive

• 123% increase in consolidated earnings to $2,288,000 in Q1 2021.
• EPS rose to $0.14 from $0.06 in Q1 2020.
• Loan growth of $194.7 million or 47% year-over-year.
• Total assets increased 46% to $859.7 million.

Negative

• Decreased earnings on liquid investments due to interest rate cuts.
• Provision for loan loss expense increased to $0.9 million compared to $0.5 million a year earlier.

US Metro Bancorp (OTC Pink: USMT): Mr. Dong Il Kim, President and CEO, announced US Metro Bancorp and US Metro Bank’s financial results for the first quarter 2021. As of January 2, 2020, US Metro Bancorp (“Bancorp”), a small bank holding company (BHC), was formed, making US Metro Bank its lone subsidiary. On a consolidated basis the Bancorp earned $2,288,000 in the first quarter of 2021 compared to $1,025,000 in the first quarter of 2020, a 123% increase, and compared to earnings of $1,425,000 for the three months ending December 31, 2020. On a year-to-date basis the Bancorp recorded a return on average assets (“ROAA”) of 1.13% and a return on average equity (“ROAE”) of 14.25%. With 16,230,000 shares outstanding, earnings per share (“EPS”) for the first quarter was $0.14 compared to $0.06 in the first quarter last year and $0.09 for the fourth quarter of 2020. At March 31, 2021, the Bancorp’s Book Value was $4.01 compared to $3.65 per share a year earlier.

US Metro Bank recorded year-over-year loan growth of $194.7 million or 47%. Included in the annual loan growth is $88 million in net Payroll Protection Program (PPP) loans booked through the first quarter 2021. Deposits grew $243.4 million or 47% over March 31, 2020. The opening of the Bank’s Torrance Branch in December 2019 accounted for $37.5 million of the total deposit growth with a total of $78.8 million in deposits as of March 31, 2021. Four of the other five branches have total deposits of over $100 million each. Net Interest Income increased $1.5 million or 29% for the first quarter compared to the first quarter a year earlier with interest income increasing $0.3 million while interest expense decreased $1.1 million. SBA premium income for the three months ending March 31, 2021, was $1.6 million compared to $0.5 million for the same period in 2020, an increase of 220%. Net income of $2,639,000 for the three months ending March 31, 2021 compares to $1,025,000 reported for the same three months in 2020, a year-over-year increase of $1.6 million or 158%.

The Bank reported total assets of $859.7 million as of March 31, 2021, representing a 46% increase compared to the reporting period ending March 31, 2020. In 2017, the Bank opened a branch office on April 3, 2017 on Wilshire Boulevard in Koreatown, Los Angeles, and a new branch in downtown Los Angeles’ Fashion District on November 1, 2017. On December 5, 2018, a fifth branch was opened in Buena Park (Fullerton Branch), California. On December 20, 2019, a sixth branch was opened in Torrance, California. As of March 31, 2021, the Wilshire branch recorded a total deposit base of $103.6 million, including $24.4 million in non-interest bearing deposits. The Fashion District Branch had $116.3 million in total deposits at March 31, 2021, including $51.8 million in non-interest bearing deposits. The Fullerton Branch recorded a deposit base of $178.2 million with $38.2 million in non-interest bearing deposits at March 31, 2021, and the new Torrance Branch had $78.8 million in deposits at March 31, 2021, including $22.2 million in non-interest bearing deposits. Total Bank deposits ended the first quarter of 2021 at $757.1 million, a 47% increase from $513.7 million at March 31, 2020. Non-interest bearing deposits grew to $243.3 million at March 31, 2021 from $122.3 million at March 31, 2020, an increase of 99%.

SBA loan originations for the first quarter ending March 31, 2021 were $19.0 million compared to $9.1 million for the first quarter 2020. Due to the COVID-19 pandemic and the uncertainty of the current economic climate, the Bank closed three of its four SBA Loan Production Offices on April 15, 2020. The Dallas LPO remained open in 2020, and in November the Bank reopened the Seattle LPO.

Loan quality remains good with non-performing assets as a percent of total assets of 0.20% at March 31, 2021 compared to 0.16% as of March 31, 2020. The Bank had no Other Real Estate Owned at March 31, 2020. Allowance for loan and lease losses (ALLL) to gross loans was 1.66% as of March 31, 2021 compared to 1.35% as of March 31, 2020. Excluding PPP Loans, the ALLL was 1.94% of gross loans at March 31, 2021. With the uncertainty in the economy related to the COVID-19 pandemic, the Bank recorded $0.9 million in provision for loan loss expense for the three months ending March 31, 2021 compared to $0.5 million recorded for the three months ending March 31, 2020.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during the first quarter of 2021. However, beginning with the interest rate decreases seen mid-March of last year, earnings on liquid investments have decreased substantially. Fortunately SBA loan demand has been positive. The Bank has been proactive in implementing elements of the Strategic Plan and has formed a Mortgage Finance Group which has contributed $60.7 million in outstanding mortgage warehouse loans as of March 31, 2021. Through the COVID-19 pandemic economic stimulus programs, the Bank funded a total of $150 million in PPP loans of which $88 million are still outstanding as of March 31, 2021. During 2020 the Bank provided loan modifications for loans totaling $150 million for our borrowers. As of March 31, 2021 there remains only $8 million on modified terms. We have implemented the Bank’s Pandemic Contingency Plan with staff working remotely if possible and practicing social distancing through telecommunication meetings and rotating staff through shelter at home practices. Capital and Liquidity remain strong and USMB is well positioned to manage through the Pandemic,” 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 and Torrance, and with loan production offices in Dallas and Seattle. The Bank opened for business on September 15, 2006, and offers deposit and loan products (including commercial real estate, commercial and industrial and SBA loans), 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
		3/31/2021				12/31/2020				% Change				3/31/2020				% Change
Net Income		$	2,288			$	1,425				60.56	%		$	1,025				123.22	%
Net Income Per Share (Basic)		$	0.14			$	0.09				60.56	%		$	0.06				123.22	%
ROAA (Annualized)			1.13	%			0.75	%			0.38	%			0.72	%			0.41	%
ROAE (Annualized)			14.25	%			9.01	%			5.24	%			6.89	%			7.36	%
Efficiency Ratio			49.04	%			57.89	%			-8.85	%			68.29	%			-19.25	%
Assets		$	859,737			$	766,700				12.13	%		$	588,773				46.02	%
Gross Loans		$	613,572			$	594,342				3.24	%		$	418,866				46.48	%
Deposits		$	756,158			$	667,073				13.35	%		$	512,776				47.46	%
Non-Interest Bearing Deposits		$	242,398			$	191,823				26.37	%		$	121,405				99.66	%
Common Equity		$	65,080			$	62,792				3.64	%		$	59,188				9.95	%
Ending Common Shares O/S			16,230,000				16,230,000								16,230,000
Book Value Per Common Shares		$	4.01			$	3.87			$	0.14			$	3.65			$	0.36

US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets		3/31/2021				3/31/2020				Y-O-Y Change
Cash and Due From Bank		$	11,316			$	9,290			$	2,026			21.8	%
Investments and Fed Funds Sold		$	227,423			$	151,685				75,738			49.9	%
Loans Outstanding			613,579				418,866				194,713			46.5	%
Loan Loss Reserve			(10,165	)			(5,657	)			(4,508	)		79.7	%
Other Assets			17,584				14,589				2,995			20.5	%
Total Assets		$	859,737			$	588,773			$	270,964			46.0	%
Liabilities and Capital		3/31/2021				3/31/2020				Y-O-Y Change
Deposits		$	757,083			$	513,710			$	243,373			47.4	%
Borrowings			8,705				4,003				4,702			117.5	%
Other Liabilities			3,773				2,872				901			31.4	%
Equity			90,176				68,188				21,988			32.2	%
Total Liabilities and Capital		$	859,737			$	588,773			$	270,964			46.0	%
STATEMENT OF OPERATIONS		Three Months Ended
Income Statement		3/31/2021				3/31/2020				Q-O-Q Change
Interest Income		$	7,193			$	6,861			$	332			4.8	%
Interest Expense			684				1,817				(1,133	)		-62.4	%
Net Interest Income			6,509				5,044				1,465			29.0	%
Provision for Loan Losses			900				450				450			100.0	%
Other Income			2,275				988				1,287			130.3	%
Operating Expenses			4,135				4,119				16			0.4	%
Tax			1,110				438				672			153.4	%
Net Income		$	2,639			$	1,025			$	1,614			157.5	%
Ratios		3/31/2021				3/31/2020				Y-O-Y Change
Net Loan to Deposits			79.70	%			80.44	%			-0.73	%
ALLL/Gross Loans			1.66	%			1.35	%			0.31	%
NPAs/Total Assets			0.20	%			0.16	%			0.04	%
Tier One Leverage Ratio			11.03	%			11.65	%			-0.62	%
YTD ROAA (Annualized)			1.31	%			0.72	%			0.59	%
YTD ROAE (Annualized)			11.85	%			6.88	%			4.97	%
Net Interest Margin (QTD)			3.30	%			3.67	%			-0.37	%

 

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FAQ

What were US Metro Bancorp's Q1 2021 earnings results?

US Metro Bancorp reported earnings of $2,288,000 for Q1 2021, which is a 123% increase from Q1 2020.

How much did US Metro Bancorp's EPS grow in Q1 2021?

The EPS for US Metro Bancorp increased to $0.14 in Q1 2021 from $0.06 in Q1 2020.

What was the total loan growth for US Metro Bank in Q1 2021?

US Metro Bank experienced loan growth of $194.7 million, a 47% increase year-over-year in Q1 2021.

How did US Metro Bancorp's total assets change in Q1 2021?

Total assets of US Metro Bancorp increased by 46% to $859.7 million as of March 31, 2021.

What were the provisions for loan losses for US Metro Bancorp in Q1 2021?

The provision for loan loss expense for Q1 2021 was $0.9 million, an increase from $0.5 million in the same period last year.