US Metro Bancorp Announces First Quarter 2022 Results

Rhea-AI Summary

US Metro Bancorp (OTCQX: USMT) reported robust financial results for Q1 2022, with earnings of $3.68 million, a 61% increase from $2.29 million in Q1 2021. The bank's return on average assets (ROAA) stood at 1.45%, and return on average equity (ROAE) was 19.11%. Year-over-year, loans grew by 36%, while deposits increased by 26%. Non-performing assets were low at 0.28%, reflecting strong credit quality. The bank's total assets reached $1.06 billion, a 24% rise from the previous year.

Positive

• 61% increase in earnings year-over-year, reaching $3.68 million in Q1 2022.
• Loans increased by $221.5 million (36%) and core loans by $301 million (56%) year-over-year.
• Deposits grew by $194.2 million (26%) to $951.2 million as of March 31, 2022.
• Net interest income rose by $2.1 million (32%) compared to Q1 2021.
• SBA premium income increased by 81% year-over-year.

Negative

• Decrease of $79.1 million in Payroll Protection Program (PPP) loans, indicating reliance on government-backed loans is decreasing.

61% Increase in Earnings 1^st Qtr. 2022 Over 1^st Qtr. 2021

36% Annual Increase in Loans

26% Annual Increase in Deposits

GARDEN GROVE, Calif.--(BUSINESS WIRE)-- US Metro Bancorp (OTCQX: USMT): Mr. Dong Il Kim, President and CEO, announced US Metro Bancorp and US Metro Bank’s financial results for the first quarter 2022. On a consolidated basis the Bancorp earned $3,680,000 in the first quarter of 2022, compared to $2,288,000 in the first quarter of 2021, a 61% increase. On a year-to-date basis the Bancorp recorded an annualized return on average assets (“ROAA”) of 1.45% and an annualized return on average equity (“ROAE”) of 19.11%. With 16,230,000 shares outstanding, earnings per share (“EPS”) for the first quarter 2022 was $0.23 compared to $0.14 in the first quarter 2021. At March 31, 2022, the Bancorp’s Book Value was $4.77 compared to $4.01 per share a year earlier.

US Metro Bank recorded year over year loan growth of $221.5 million or 36%. Included in the annual loan growth is a decrease of $(79.1) million in Payroll Protection Program (PPP) loans. Core loan (non PPP loans), year over year growth was $301.0 million or 56%. Deposits grew $194.2 million or 26% over March 31, 2021. Five of a total of six branches have deposits of over $100 million. Net Interest Income increased $2.1 million or 32% for the first quarter compared to the first quarter a year earlier with interest income increasing $2.0 million while interest expense decreased $(0.1) million. SBA premium income for the three months ending March 31, 2022 was $2.9 million compared to $1.6 million for the same period in 2021, an increase of 81%. Net income of $4,340,000 for the three months ending March 31, 2022 compares to $2,641,000 reported for the same three months in 2021, a year over year increase of $1.7 million or 64%.

The Bank reported total assets of $1,061.6 million as of March 31, 2022, representing a 24% increase compared to the reporting period ending March 31, 2021. Total Bank deposits ended the first quarter of 2022 at $951.2 million, a 26% increase from $757.1 million at March 31, 2021. Non-interest bearing deposits grew to $325.0 million at March 31, 2022 from $243.3 million at March 31, 2021, an increase of 34%.

SBA loan originations for the three months ending March 31, 2022, were $49.1 million compared to $19.0 million for the first quarter 2021. In addition to the existing Loan Production Offices (LPOs) in Dallas, Texas and Seattle Washington, the Bank opened two new LPOs in the third quarter 2021, one in the Inland Empire region of Southern California and one in the Bay Area of Northern California. In January 2022, the Bank opened two more LPOs, one in Fresno, California and one in Sacramento, California.

Credit quality remains good with non-performing assets as a percent of total assets of 0.28% at March 31, 2022, compared to 0.20% as of March 31, 2021. The Bank had no Other Real Estate Owned at December 31, 2021, and TDR’s of $1.9 million. Allowance for loan and lease losses (ALLL) to gross loans was 1.49% as of March 31, 2022, compared to 1.66% as of March 31, 2021. The Bank recorded $0.6 million in provision for loan loss expense, for the three months ending March 31, 2022, compared to $0.9 million recorded for the three months ending March 31, 2021.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during the first quarter 2022. Government guaranteed loan demand continues to be healthy and the Bank has been proactive in implementing elements of the Strategic Plan. The Mortgage Finance Group has contributed a combined $129.8 million in outstanding mortgage warehouse loans and residential mortgages, along with $58.7 million in deposits, as of March 31, 2022. Through the COVID 19 pandemic economic stimulus programs, the Bank funded a total of $112 million in PPP loans of which $9 million are still outstanding as of March 31, 2021. During 2020 the Bank provided COVID 19 related loan modifications for loans totaling $150 million for our borrowers. As of March 31, 2022, there are no loans remaining on COVID 19 modified terms. As of this writing, the Bank continues to practice pandemic protocols and conducting virtual meetings whenever possible. Capital and Liquidity remain strong and USMB is well positioned for continued growth,” 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, Torrance and with loan production offices in Dallas, Seattle, Inland Empire of Southern California, Northern California, Fresno and Sacramento. The Bank opened for business on September 15, 2006, and offers deposit and loan products (including commercial real estate, commercial and industrial, SBA loans and real estate mortgages), 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
		3/31/2022				12/31/2021				% Change				3/31/2021				% Change
Net Income		$	3,680			$	4,946				-25.60	%		$	2,288				60.84	%
Net Income Per Share (Basic)		$	0.23			$	0.30				-25.60	%		$	0.14				60.84	%
ROAA (Annualized)			1.45	%			2.02	%			-0.57	%			1.13	%			0.32	%
ROAE (Annualized)			19.11	%			26.48	%			-7.37	%			14.31	%			4.80	%
Efficiency Ratio			51.22	%			46.18	%			5.05	%			49.04	%			2.18	%
Assets		$	1,062,023			$	968,418				9.67	%		$	859,737				23.53	%
Gross Loans		$	834,714			$	769,783				8.43	%		$	613,572				36.04	%
Deposits		$	950,918			$	856,756				10.99	%		$	756,158				25.76	%
Non-Interest Bearing Deposits		$	324,658			$	300,531				8.03	%		$	242,398				33.94	%
Common Equity		$	77,374			$	76,658				0.93	%		$	65,080				18.89	%
Ending Common Shares O/S			16,230,000				16,230,000								16,230,000
Book Value Per Common Shares		$	4.767			$	4.723			$	0.044			$	4.010			$	0.757

US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets		3/31/2022				3/31/2021				Y-O-Y Change
Cash and Due From Bank		$	13,149			$	11,316			$	1,833			16.2	%
Investments and Fed Funds Sold		$	203,487			$	227,423				(23,936	)		-10.5	%
Loans Outstanding			835,064				613,579				221,485			36.1	%
Loan Loss Reserve			(12,415	)			(10,165	)			(2,250	)		22.1	%
Other Assets			22,318				17,584				4,734			26.9	%
Total Assets		$	1,061,603			$	859,737			$	201,866			23.5	%
Liabilities and Capital		3/31/2022				3/31/2021				Y-O-Y Change
Deposits		$	951,243			$	757,083			$	194,160			25.6	%
Borrowings			3,892				8,705				(4,813	)		-55.3	%
Other Liabilities			3,760				3,773				(13	)		-0.3	%
Equity			102,708				90,176				12,532			13.9	%
Total Liabilities and Capital		$	1,061,603			$	859,737			$	201,866			23.5	%
STATEMENT OF OPERATIONS		Three Months Ended
Income Statement		3/31/2022				12/31/2021				Q-O-Q Change
Interest Income		$	9,162			$	8,814			$	348			3.9	%
Interest Expense			595				584				11			1.9	%
Net Interest Income			8,567				8,230				337			4.1	%
Provision for Loan Losses			600				300				300			100.0	%
Other Income			3,750				5,052				(1,302	)		-25.8	%
Operating Expenses			5,553				6,122				(569	)		-9.3	%
Tax			1,824				2,032				(208	)		-10.2	%
Net Income		$	4,340			$	4,828			$	(488	)		-10.1	%
STATEMENT OF OPERATIONS		Three Months Ended
Income Statement		3/31/2022				3/31/2021				Y-O-Y Change
Interest Income		$	9,162			$	7,194			$	1,968			27.4	%
Interest Expense			595				684				(89	)		-13.0	%
Net Interest Income			8,567				6,510				2,057			31.6	%
Provision for Loan Losses			600				900				(300	)		N/A
Other Income			3,750				2,276				1,474			64.8	%
Operating Expenses			5,553				4,135				1,418			34.3	%
Tax			1,824				1,110				714			NM
Net Income		$	4,340			$	2,641			$	1,699			64.3	%
Ratios		3/31/2022				3/31/2021				Y-O-Y Change
Net Loan to Deposits			86.48	%			79.70	%			6.78	%
ALLL/Gross Loans			1.49	%			1.66	%			-0.17	%
NPAs/Total Assets			0.28	%			0.20	%			0.09	%
Tier One Leverage Ratio			10.49	%			11.02	%			-0.53	%
YTD ROAA (annualized)			1.72	%			1.31	%			0.41	%
YTD ROAE (annualized)			16.73	%			11.85	%			4.88	%
Net Interest Margin (QTD)			3.45	%			3.30	%			0.15	%
Net Interest Margin (YTD)			3.45	%			3.30	%			0.15	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220426006134/en/

Dong Il Kim

(714) 620-8888

Source: US Metro Bancorp

FAQ

What financial performance did US Metro Bancorp report for Q1 2022?

US Metro Bancorp reported earnings of $3.68 million for Q1 2022, a 61% increase from the previous year.

How much did US Metro Bancorp's loans increase in Q1 2022?

Loans increased by 36% year-over-year, totaling $221.5 million.

What is the deposit growth for US Metro Bancorp in Q1 2022?

Deposits grew by 26%, amounting to $951.2 million compared to $757.1 million in Q1 2021.

What were the returns on average assets and equity for US Metro Bancorp in Q1 2022?

The bank recorded an annualized ROAA of 1.45% and an ROAE of 19.11%.

What is the current status of non-performing assets for US Metro Bancorp?

Non-performing assets were reported at 0.28% of total assets, reflecting strong credit quality as of March 31, 2022.