US Metro Bancorp Announces Fourth Quarter 2023 Results

Rhea-AI Summary

US Metro Bancorp (USMT) has reported a consolidated earnings of $10.6 million for the twelve months ending December 31, 2023, compared to $16.8 million for the same period in 2022. The annualized return on average assets (ROAA) was 0.88%, and the annualized return on average equity (ROAE) was 11.40%. The Bank recorded net interest income of $34.8 million for the year, representing a 9.7% year-over-year loan growth. The total assets of the bank increased by 9.3% to $1.225 billion, with total deposits ending the year at $1.064 billion. The Bank's newest branch in Los Angeles, California opened in December 2023, and loan quality remains good with non-performing assets at 0.09% of total assets.

GARDEN GROVE, Calif.--(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, the Bancorp earned $2.5 million in the fourth quarter of 2023, compared to $2.3 million in the third quarter of 2023. For the twelve months ending December 31, 2023, the consolidated Bancorp earned $10.6 million compared to $16.8 million for the twelve months ending December 31, 2022. On a year-to-date basis, the Bancorp recorded an annualized return on average assets (“ROAA”) of 0.88% and an annualized return on average equity (“ROAE”) of 11.40%. With 16,390,000 shares outstanding, earnings per share (“EPS”) for the fourth quarter of 2023 was $0.15 compared to $0.14 in the third quarter of 2023. For the twelve months ending December 31, 2023, EPS was $0.65 compared to $1.03 for the twelve months ending December 31, 2022. On December 31, 2023, the Bancorp’s book value per share was $5.81 compared to $5.18 a year earlier.

The Bank recorded on a year-to-date basis net interest income of $34.8 million compared to $39.7 million in the same period a year earlier. Net income of $12.0 million for the twelve months ending December 31, 2023, compares to $18.4 million reported for the same twelve months in 2022, a year over year decrease of $6.3 million.

The Bank reported total assets of $1.225 billion as of December 31, 2023, representing a 9.3% increase compared to the reporting period ending December 31, 2022, and year over year loan growth of $90.3 million or 9.7%. Total Bank deposits ended the fourth quarter of 2023 at $1.064 billion, a $87.5 million or 9.0% increase from $977 million on December 31, 2022. Six of the Bank’s eight branches have deposits exceeding $100 million, with two branches having more than $200 million in deposits. The Bank’s newest branch in Los Angeles, California opened in December 2023.

Loan quality remains good with non-performing assets as a percent of total assets of 0.09% on December 31, 2023, compared to 0.22% as of December 31, 2022. The Bank had no Other Real Estate Owned (OREO) on December 31, 2023, and one TDR loan totaling $36 thousand. Allowance for loan and lease losses (ALLL) to gross loans was 1.27% as of December 31, 2023, compared to 1.38% as of December 31, 2022. The Bank recorded a $500 thousand provision for loan loss expense, for the twelve months ending December 31, 2023, compared to $1.3 million recorded for the twelve months ending December 31, 2022.

“The Bank produced positive financial results as well as growth in both loans and deposits in 2023. We are optimistic about the future of US Metro Bank and its continued success,” 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
	12/31/2023				9/30/2023				% Change				12/31/2022				% Change
Net Income	$	2,479			$	2,309				7.39	%		$	4,871				-49.10	%
Net Income Per Share (Basic)	$	0.15			$	0.14				7.39	%		$	0.30				-49.20	%
ROAA (Annualized)		0.82	%			0.78	%			0.03	%			1.76	%			-0.94	%
ROAE (Annualized)		10.65	%			10.19	%			0.47	%			23.56	%			-12.91	%
Efficiency Ratio		70.03	%			70.93	%			-0.90	%			53.23	%			16.80	%
Assets	$	1,225,976			$	1,199,631				2.20	%		$	1,122,179				9.25	%
Gross Loans	$	1,021,079			$	960,639				6.29	%		$	930,748				9.71	%
Deposits	$	1,063,481			$	1,035,746				2.68	%		$	976,266				8.93	%
Non-Interest Bearing Deposits	$	173,600			$	198,575				-12.58	%		$	299,422				-42.02	%
Common Equity	$	95,229			$	90,937				4.72	%		$	84,878				12.19	%
Ending Common Shares O/S		16,390,000				16,390,000								16,360,000
Book Value Per Common Shares	$	5.81			$	5.55			$	0.26			$	5.19			$	0.62
	At or for the Twelve Months Ended
	12/31/2023				12/31/2022				Y-O-Y Change
Net Income	$	10,615			$	16,847			$	(6,232	)			-36.99	%
Net Income Per Share (Basic)	$	0.65			$	1.03			$	(0.39	)			-37.31	%
ROAA (Annualized)		0.88	%			1.52	%			-0.64	%			-42.40	%
ROAE (Annualized)		11.40	%			20.37	%			-8.97	%			-44.02	%
Efficiency Ratio		67.03	%			51.55	%			15.48	%			30.02	%
Assets	$	1,225,976			$	1,122,179			$	103,797				9.25	%
Gross Loans (Excl. Loans HFS)	$	1,010,838			$	928,767			$	82,071				8.84	%
Deposits	$	1,063,481			$	976,266			$	87,215				8.93	%
Non-Interest Bearing Deposits	$	173,600			$	299,422			$	(125,822	)			-42.02	%
Common Equity	$	95,229			$	84,878			$	10,351				12.19	%
Ending Common Shares O/S		16,390,000				16,390,000				-				0.00	%
Book Value Per Common Shares	$	5.81			$	5.18			$	0.63				12.19	%

US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets	12/31/2023				12/31/2022				Y-O-Y Change
Cash and Due From Bank	$	14,439			$	15,681			$	(1,242	)		-7.9	%
Investments and Fed Funds Sold	$	168,652			$	156,758				11,894			7.6	%
Loans Outstanding		1,021,079				930,747				90,332			9.7	%
Loan Loss Reserve		(12,961	)			(12,876	)			(85	)		0.7	%
Other Assets		33,897				30,695				3,202			10.4	%
Total Assets	$	1,225,106			$	1,121,005			$	104,101			9.3	%
Liabilities and Capital	12/31/2023				12/31/2022				Y-O-Y Change
Deposits	$	1,064,436			$	976,953			$	87,483			9.0	%
Borrowings		30,416				31,697				(1,281	)		-4.0	%
Other Liabilities		11,008				2,944				8,064			273.9	%
Equity		119,246				109,411				9,835			9.0	%
Total Liabilities and Capital	$	1,225,106			$	1,121,005			$	104,101			9.3	%
STATEMENT OF OPERATIONS	Three Months Ended
Income Statement	12/31/2023				9/30/2023				Q-O-Q Change
Interest Income	$	18,244			$	17,252			$	992			5.7	%
Interest Expense		9,798				8,713				1,084			12.4	%
Net Interest Income		8,446				8,539				(93	)		-1.1	%
Provision for Loan Losses		-				-				-
Other Income		3,159				2,843				316			11.1	%
Operating Expenses		7,694				7,522				172			2.3	%
Tax		1,049				1,100				(51	)		-4.6	%
Net Income	$	2,862			$	2,760			$	102			3.7	%
STATEMENT OF OPERATIONS	Twelve Months Ended
Income Statement	12/31/2023				12/31/2022				Y-O-Y Change
Interest Income	$	66,757			$	45,498			$	21,259			46.7	%
Interest Expense		31,991				5,818				26,172			449.8	%
Net Interest Income		34,766				39,680				(4,914	)		-12.4	%
Provision for Loan Losses		500				1,300				(800	)		-61.5	%
Other Income		12,817				12,646				171			1.4	%
Operating Expenses		30,368				25,520				4,848			19.0	%
Tax		4,699				7,141				(2,442	)		-34.2	%
Net Income	$	12,016			$	18,365			$	(6,349	)		-34.6	%
Ratios	12/31/2023				12/31/2022				Y-O-Y Change
Net Loan to Deposits		94.71	%			93.95	%			0.76	%
ALLL/Gross Loans		1.27	%			1.38	%			-0.11	%
NPAs/Total Assets		0.09	%			0.22	%			-0.14	%
Tier One Leverage Ratio		10.30	%			10.75	%			-0.45	%
YTD ROAA (annualized)		1.03	%			1.72	%			-0.70	%
YTD ROAE (annualized)		10.46	%			17.42	%			-6.96	%
Net Interest Margin (QTD)		2.81	%			4.02	%			-1.21	%
Net Interest Margin (YTD)		3.03	%			3.80	%			-0.77	%

 

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Jeremy Johnson

(714) 620-8888

Source: US Metro Bancorp

FAQ

What were the earnings of US Metro Bancorp for the twelve months ending December 31, 2023?

US Metro Bancorp reported earnings of $10.6 million for the twelve months ending December 31, 2023.

What was the annualized return on average assets (ROAA) for US Metro Bancorp?

The annualized return on average assets (ROAA) for US Metro Bancorp was 0.88%.

What was the annualized return on average equity (ROAE) for US Metro Bancorp?

The annualized return on average equity (ROAE) for US Metro Bancorp was 11.40%.

How much was the net interest income of the Bank for the year?

The Bank recorded net interest income of $34.8 million for the year.

What was the year-over-year loan growth for the Bank?

The Bank recorded a 9.7% year-over-year loan growth.

What was the total assets of the Bank as of December 31, 2023?

The total assets of the Bank were $1.225 billion as of December 31, 2023.

What were the total deposits of the Bank at the end of the year?

The total deposits of the Bank ended the year at $1.064 billion.

When did the Bank's newest branch in Los Angeles, California open?

The Bank's newest branch in Los Angeles, California opened in December 2023.

What was the percentage of non-performing assets of the Bank as of December 31, 2023?

The percentage of non-performing assets of the Bank was 0.09% as of December 31, 2023.