US Metro Bancorp Announces Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

US Metro Bancorp (OTCQX: USMT) reported strong financial results for Q4 2022, with earnings of $4.46 million, up from $4.08 million in Q3 2022. Total earnings for 2022 reached $16.44 million, a 4.67% increase from 2021. The bank achieved a return on average assets (ROAA) of 1.98% and a return on average equity (ROAE) of 26.54%. Total assets grew 15.8% year-over-year to $1.12 billion, while total deposits rose 14.0% to $977 million. Net interest income increased 36.6% to $10.6 million. However, SBA premium income fell significantly to $8.3 million from $15.9 million. The bank is well-positioned for future growth, despite the retirement of CFO Ralph Wiita.

Positive

• 4.67% increase in total earnings year-over-year.
• Total assets increased by 15.8% to $1.12 billion.
• Total deposits grew by 14.0% to $977 million.
• Net interest income rose 36.6% to $10.6 million.
• ROAA of 1.98% and ROAE of 26.54% demonstrate strong profitability.
• EPS increased to $0.27 in Q4 2022 from $0.25 in Q3 2022.

Negative

• SBA premium income decreased significantly, from $15.9 million in 2021 to $8.3 million in 2022.
• Loan quality showed a slight increase in non-performing assets ratio from 0.13% to 0.22% year-over-year.

4.67% Increase in Earnings YTD 2022 Over YTD 2021

ROAA 1.98% for Twelve Months

ROAE 26.54% for Twelve Months

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 fourth quarter 2022. US Metro Bancorp (“Bancorp”) is a bank holding company (BHC), with a single subsidiary, US Metro Bank. On a consolidated basis the Bancorp earned $4,463,000 in the fourth quarter of 2022, compared to $4,076,000 in the third quarter of 2022. For the twelve months ending December 31, 2022, the consolidated Bancorp earned $16,439,000 compared to $15,705,000 for the twelve months ending December 31, 2021. On a year-to-date basis the Bancorp recorded an annualized return on average assets (“ROAA”) of 1.98% and an annualized return on average equity (“ROAE”) of 26.54%. With 16,360,000 shares outstanding, earnings per share (“EPS”) for the fourth quarter 2022 was $0.27 compared to $0.25 in the third quarter 2022. For the twelve months ended December 31, 2022, EPS was $1.01 compared to $0.97 for the twelve months ending December 31, 2021. On December 31, 2022, the Bancorp’s Book Value was $5.17 compared to $4.72 per share a year earlier.

US Metro Bank recorded year over year loan growth of $158.2 million or 20.5%. Deposits grew $119.9 million or 14.0% over December 31, 2021. Five of a total of six branches have deposits of over $100 million. Net Interest Income increased $10.6 million or 36.6% for the twelve months ending December 31, 2022, compared to the same period a year earlier. SBA premium income for the twelve months ending December 31, 2022, was $8.3 million compared to $15.9 million for the same period in 2021. Net income of $17,956,000 for the twelve months ending December 31, 2022, compares to $16,921,000 reported for the same twelve months in 2021, a year over year increase of $1.0 million or 6.1%.

The Bank reported total assets of $1.12 billion as of December 31, 2022, representing a 15.8% increase compared to the reporting period ending December 31, 2021. 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 December 31, 2022, the Wilshire branch recorded a total deposit base of $110.6 million including $20.5 million in non-interest-bearing deposits. The Fashion District Branch had $137.6 million in total deposits on December 31, 2022, including $52.3 million in non-interest-bearing deposits. The Fullerton Branch recorded a deposit base of $207.5 million with $74.9 million in non-interest-bearing deposits at December 31, 2022, and the newest Torrance Branch had $105.1 million in deposits at December 31, 2022, including $29.1 million in non-interest bearing deposits. The Bank’s Headquarters Branch in Garden Grove had $262.4 million in deposits including $59.2 million in non-interest-bearing deposits at December 31, 2022. The Anaheim Branch, the only branch not in a Korean American community, focusing on loan originations, carries a loan to deposit ratio of 158% with total deposits of $77.7 million including $36.6 million in non-interest-bearing deposits. Total Bank deposits ended the fourth quarter of 2022 at $977.0 million, a 14.0% increase from $857.1 million on December 31, 2021. Non-interest-bearing deposits slightly decreased to $300.1 million on December 31, 2022, from $300.9 million at December 31, 2021, a decrease of 0.26%.

SBA loan originations for the twelve months ending December 31, 2022, were $174.4 million compared to $204.4 million for the same twelve-month period in 2021. In January 2022, the Bank opened two additional LPOs, one in Fresno, California and one in Sacramento, California.

Loan quality remains good with non-performing assets as a percent of total assets of 0.22% on December 31, 2022, compared to 0.13% as of December 31, 2021. The Bank had no Other Real Estate Owned on December 31, 2022, and two TDR loans totaling $1.7 million. Allowance for loan and lease losses (ALLL) to gross loans was 1.38% as of December 31, 2022, compared to 1.52% as of December 31, 2021. The Bank recorded $1.3 million in provision for loan loss expense, for the twelve months ending December 31, 2022, compared to $3.0 million recorded for the twelve months ending December 31, 2021.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during the fourth quarter and full year of 2022. The Bank has continued to experience strong growth and believes it is well positioned going into 2023,” said Mr. Kim.

The Bank and Bancorp is announcing the retirement of Mr. Ralph Wiita, Executive Vice President and Chief Financial Officer as of December 2022. Mr. Wiita joined the Bank in 2017 and has been instrumental in the Bank’s growth. He will be succeeded by Mr. Jeremy Johnson, Executive Vice President and Chief Financial Officer who joined the Bank in October 2022.

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 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
	12/31/2022				9/30/2022				% Change				12/31/2021				% Change
Net Income	$	4,463			$	4,076				9.50	%		$	4,947				-9.78	%
Net Income Per Share (Basic)	$	0.27			$	0.25				9.50	%		$	0.30				-10.50	%
ROAA (Annualized)		1.61	%			1.50	%			0.11	%			2.02	%			-0.41	%
ROAE (Annualized)		21.62	%			20.47	%			1.15	%			26.48	%			-4.86	%
Efficiency Ratio		53.23	%			52.89	%			0.34	%			46.32	%			6.91	%
Assets	$	1,122,181			$	1,095,222				2.46	%		$	968,418				15.88	%
Gross Loans	$	929,429			$	892,144				4.18	%		$	769,783				20.74	%
Deposits	$	976,413			$	978,721				-0.24	%		$	856,757				13.97	%
Non-Interest Bearing Deposits	$	299,568			$	319,511				-6.24	%		$	300,531				-0.32	%
Common Equity	$	84,630			$	80,515				5.11	%		$	76,658				10.40	%
Ending Common Shares O/S		16,360,000				16,360,000								16,230,000
Book Value Per Common Shares	$	5.17			$	4.92			$	0.25			$	4.72			$	0.45
	At or for the Twelve Months Ended
	12/31/2022				12/31/2021				Y-O-Y Change
Net Income	$	16,439			$	15,705			$	734				4.67	%
Net Income Per Share (Basic)	$	1.01			$	0.97			$	0.04				4.20	%
ROAA (Annualized)		1.98	%			1.60	%			0.37	%			23.38	%
ROAE (Annualized)		26.54	%			21.02	%			5.53	%			26.29	%
Efficiency Ratio		51.55	%			47.20	%			4.35	%			9.22	%
Assets	$	1,122,181			$	968,418			$	153,763				15.88	%
Gross Loans (Excl. Loans HFS)	$	929,429			$	769,783			$	159,646				20.74	%
Deposits	$	976,413			$	856,757			$	119,656				13.97	%
Non-Interest Bearing Deposits	$	299,568			$	300,531			$	(963	)			-0.32	%
Common Equity	$	84,630			$	76,658			$	7,972				10.40	%
Ending Common Shares O/S		16,360,000				16,230,000				130,000				0.80	%
Book Value Per Common Shares	$	5.17			$	4.72			$	0.45				9.52	%

US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets	12/31/2022				12/31/2021				Y-O-Y Change
Cash and Due From Bank	$	15,681			$	13,061			$	2,620			20.1	%
Investments and Fed Funds Sold	$	156,758			$	176,028				(19,270	)		-10.9	%
Loans Outstanding		930,748				772,593				158,155			20.5	%
Loan Loss Reserve		(12,876	)			(11,734	)			(1,142	)		9.7	%
Other Assets		31,083				18,323				12,760			69.6	%
Total Assets	$	1,121,394			$	968,271			$	153,123			15.8	%
Liabilities and Capital	12/31/2022				12/31/2021				Y-O-Y Change
Deposits	$	976,953			$	857,102			$	119,851			14.0	%
Borrowings		31,697				4,038				27,659			685.0	%
Other Liabilities		3,722				5,259				(1,537	)		-29.2	%
Equity		109,022				101,872				7,150			7.0	%
Total Liabilities and Capital	$	1,121,394			$	968,271			$	153,123			15.8	%
STATEMENT OF OPERATIONS	Three Months Ended
Income Statement	12/31/2022				9/30/2022				Q-O-Q Change
Interest Income	$	13,718			$	12,368			$	1,350			10.9	%
Interest Expense		3,043				1,425				1,618			113.6	%
Net Interest Income		10,675				10,943				(268	)		-2.5	%
Provision for Loan Losses		-				300				(300	)		-100.0	%
Other Income		2,958				2,624				334			12.7	%
Operating Expenses		7,013				6,930				83			1.2	%
Tax		1,869				1,964				(95	)		-4.8	%
Net Income	$	4,750			$	4,373			$	377			8.6	%
STATEMENT OF OPERATIONS	Twelve Months Ended
Income Statement	12/31/2022				12/31/2021				Y-O-Y Change
Interest Income	$	45,498			$	31,546			$	13,952			44.2	%
Interest Expense		5,818				2,491				3,327			133.6	%
Net Interest Income		39,680				29,055				10,625			36.6	%
Provision for Loan Losses		1,300				3,000				(1,700	)		-56.7	%
Other Income		12,646				19,084				(6,438	)		-33.7	%
Operating Expenses		25,520				21,813				3,707			17.0	%
Tax		7,550				6,405				1,145			17.9	%
Net Income	$	17,956			$	16,921			$	1,035			6.1	%
Ratios	12/31/2022				12/31/2021				Y-O-Y Change
Net Loan to Deposits		93.95	%			88.77	%			5.18	%
ALLL/Gross Loans		1.38	%			1.52	%			-0.14	%
NPAs/Total Assets		0.22	%			0.13	%			0.10	%
Tier One Leverage Ratio		10.70	%			10.51	%			0.19	%
YTD ROAA (annualized)		1.69	%			1.90	%			-0.22	%
YTD ROAE (annualized)		17.03	%			17.87	%			-0.84	%
Net Interest Margin (QTD)		4.02	%			3.47	%			0.56	%
Net Interest Margin (YTD)		3.80	%			3.34	%			0.46	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005868/en/

Dong Il Kim

(714) 620-8888

Source: US Metro Bancorp

FAQ

What were the earnings for US Metro Bancorp in Q4 2022?

US Metro Bancorp reported earnings of $4.46 million for Q4 2022.

How did total deposits change for US Metro Bancorp by the end of 2022?

Total deposits for US Metro Bancorp increased by 14.0% to $977 million by the end of 2022.

What is the ROAA for US Metro Bancorp for 2022?

The return on average assets (ROAA) for US Metro Bancorp was 1.98% for the twelve months ending December 31, 2022.

How is US Metro Bancorp positioned for future growth?

US Metro Bancorp is well-positioned for growth, as stated by the Board of Directors, despite the retirement of CFO Ralph Wiita.

What was the year-over-year increase in net interest income for US Metro Bancorp?

Net interest income increased by 36.6% to $10.6 million for the twelve months ending December 31, 2022.