US Metro Bancorp Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

US Metro Bancorp (OTCQX: USMT) reported a robust financial performance for Q2 2022 with earnings reaching $4.22 million, reflecting a 21% increase year-to-date compared to $3.68 million in Q1 2022. Year-to-date earnings totaled $7.9 million, up from $6.54 million in the previous year. Loans surged by 40% annually to $247.5 million, with deposits also rising 26% to $971.5 million. EPS for Q2 stood at $0.26, a rise from $0.23 in Q1 2022. The bank holds total assets of $1.1 billion, indicating a 24% growth from 2021. Non-performing assets remained stable at 0.26%. Mr. Kim noted the bank's strong capital and liquidity position.

Positive

• 21% increase in Year-to-Date earnings compared to the previous year.
• 40% annual increase in loans, reaching $247.5 million.
• 26% growth in deposits year-on-year, totaling $971.5 million.
• EPS rose to $0.26 in Q2 2022 from $0.23 in Q1 2022.
• Total assets increased by 24% to $1.1 billion.

Negative

• SBA premium income declined to $5.1 million from $6.5 million year-on-year.
• Unrealized losses in the investment portfolio amounted to $(6.9) million due to rising interest rates.

21% Increase in Earnings YTD 2022 Over YTD 2021

40% 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 second quarter 2022. On a consolidated basis the Bancorp earned $4,220,000 in the second quarter of 2022 compared to $3,680,000 in the first quarter of 2022. For the six months ending June 30, 2022 the consolidated Bancorp earned $7,900,000 compared to $6,540,000 for the six months ending June 30, 2021. On a year-to-date basis the Bancorp recorded an annualized return on average assets (“ROAA”) of 1.47% and an annualized return on average equity (“ROAE”) of 20.24%. With 16,360,000 shares outstanding, earnings per share (“EPS”) for the second quarter 2022 was $0.26 compared to $0.23 in the first quarter 2022. For the six months ended June 30, 2022 EPS was $0.48 compared to $0.40 for the six months ending June 30, 2021. At June 30, 2022 the Bancorp’s Book Value was $4.82 compared to $4.26 per share a year earlier.

US Metro Bank recorded year over year loan growth of $247.5 million or 39%. Included in the annual loan growth is a decrease of $62.4 million in Payroll Protection Program (PPP) loans. Core loan (non-PPP loans), year over year growth was $309.9 million or 55%. Deposits grew $201.4 million or 26% over June 30, 2021. Five of a total of six branches have deposits of over $100 million. Net Interest Income increased $4.8 million or 36% for the six months ending June 30, 2022 compared to the same period a year earlier with interest income increasing $4.9 million while interest expense increased $0.1 million. SBA premium income for the six months ending June 30, 2022 was $5.1 million compared to $6.5 million for the same period in 2021. Net income of $8,833,000 for the six months ending June 30, 2022 compares to $7,112,000 reported for the same six months in 2021, a year over year increase of $1.7 million or 24%.

The Bank reported total assets of $1.1 billion as of June 30, 2022, representing a 24% increase compared to the reporting period ending June 30, 2021. Total Bank deposits ended the second quarter of 2022 at $971.5 million, a 26% increase from $770.3 million at June 30, 2021. Non-interest-bearing deposits grew to $305.7 million at June 30, 2022 from $263.8 million at June 30, 2021 an increase of 16%. The Bank’s Investment Portfolio has a Book Value of $58.6 million as of June 30, 2022 compared to $50.9 million a year earlier as the bank was just beginning to build an investment portfolio. Most of the investments are in mortgage backed securities and with the recent increases in interest rates, the current unrealized loss in the portfolio is $(6.9) million. All securities are designated Available-For-Sale.

SBA loan originations for the six months ending June 30, 2022, were $99.5 million compared to $83.9 million for the same six-month period in 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 0.26% at June 30, 2022, compared to 0.24% as of June 30, 2021. The Bank had no Other Real Estate Owned at December 31, 2021, and TDRs of $1.8 million. Allowance for loan and lease losses (ALLL) to gross loans was 1.46% as of June 30, 2022, compared to 1.78% as of June 30, 2021. The Bank recorded $1.0 million in provision for loan loss expense, for the six months ending June 30, 2022, compared to $1.8 million recorded for the six months ending June 30, 2021.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during the first half of 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 $154.0 million in outstanding mortgage warehouse loans and residential mortgages, along with $75.5 million in deposits, as of June 30, 2022. Through the COVID-19 pandemic economic stimulus programs, the Bank funded a total of $112 million in PPP loans of which $2.3 million are still outstanding as of June 30, 2022. During 2020 the Bank provided COVID-19 related loan modifications for loans totaling $150 million for our borrowers. As of June 30, 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
		6/30/2022				3/31/2022				% Change				6/30/2021				% Change
Net Income		$	4,220			$	3,680				14.67	%		$	4,252				-0.75	%
Net Income Per Share (Basic)		$	0.26			$	0.23				13.76	%		$	0.26				-1.54	%
ROAA (Annualized)			1.57	%			1.45	%			0.12	%			1.97	%			-0.39	%
ROAE (Annualized)			21.62	%			19.11	%			2.51	%			25.34	%			-3.72	%
Efficiency Ratio			48.66	%			51.22	%			-2.56	%			44.25	%			4.42	%
Assets		$	1,082,173			$	1,062,023				1.90	%		$	871,342				24.20	%
Gross Loans		$	871,687			$	834,714				4.43	%		$	623,605				39.78	%
Deposits		$	970,890			$	950,918				2.10	%		$	769,472				26.18	%
Non-Interest Bearing Deposits		$	305,061			$	324,658				-6.04	%		$	263,895				15.60	%
Common Equity		$	78,782			$	77,374				1.82	%		$	69,141				13.94	%
Ending Common Shares O/S			16,360,000				16,230,000								16,230,000
Book Value Per Common Shares		$	4.816			$	4.767			$	0.048			$	4.260			$	0.555
		At or for the Six Months Ended
		6/30/2022				6/30/2021				Y-O-Y Change
Net Income		$	7,900			$	6,540			$	1,360				20.8	%
Net Income Per Share (Basic)		$	0.48			$	0.40			$	0.08				19.8	%
ROAA (Annualized)			1.47	%			1.57	%			-0.10	%			-6.3	%
ROAE (Annualized)			20.24	%			19.55	%			0.68	%			3.5	%
Efficiency Ratio			49.92	%			46.21	%			3.71	%			8.0	%
Assets		$	1,082,173			$	871,342			$	210,831				24.2	%
Gross Loans		$	871,687			$	623,605			$	248,082				39.8	%
Deposits		$	970,890			$	769,472			$	201,418				26.2	%
Non-Interest Bearing Deposits		$	305,061			$	263,895			$	41,166				15.6	%
Common Equity		$	78,782			$	69,141			$	9,641				13.9	%
Ending Common Shares O/S			16,360,000				16,230,000				130,000.00				0.8	%
Book Value Per Common Shares		$	4.82			$	4.26			$	0.56				13.0	%

US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets		6/30/2022				6/30/2021				Y-O-Y Change
Cash and Due From Bank		$	13,875			$	11,482			$	2,393			20.8	%
Investments and Fed Funds Sold		$	177,984			$	222,906				(44,922	)		-20.2	%
Loans Outstanding			876,358				628,853				247,505			39.4	%
Loan Loss Reserve			(12,762	)			(11,188	)			(1,574	)		14.1	%
Other Assets			26,189				19,121				7,068			37.0	%
Total Assets		$	1,081,644			$	871,174			$	210,470			24.2	%
Liabilities and Capital		6/30/2022				6/30/2021				Y-O-Y Change
Deposits		$	971,526			$	770,281			$	201,245			26.1	%
Borrowings			3,637				4,359				(722	)		-16.6	%
Other Liabilities			3,150				2,791				359			12.9	%
Equity			103,331				93,743				9,588			10.2	%
Total Liabilities and Capital		$	1,081,644			$	871,174			$	210,470			24.2	%
STATEMENT OF OPERATIONS		Three Months Ended
Income Statement		6/30/2022				3/31/2022				Q-O-Q Change
Interest Income		$	10,250			$	9,162			$	1,088			11.9	%
Interest Expense			755				595				160			26.9	%
Net Interest Income			9,495				8,567				928			10.8	%
Provision for Loan Losses			400				600				(200	)		-33.3	%
Other Income			3,314				3,750				(436	)		-11.6	%
Operating Expenses			6,024				5,553				471			8.5	%
Tax			1,892				1,824				68			3.7	%
Net Income		$	4,493			$	4,340			$	153			3.5	%
STATEMENT OF OPERATIONS		Six Months Ended
Income Statement		6/30/2022				6/30/2021				Y-O-Y Change
Interest Income		$	19,412			$	14,559			$	4,853			33.3	%
Interest Expense			1,350				1,302				48			3.7	%
Net Interest Income			18,062				13,257				4,805			36.2	%
Provision for Loan Losses			1,000				1,800				(800	)		N/A
Other Income			7,064				8,066				(1,002	)		-12.4	%
Operating Expenses			11,577				9,424				2,153			22.8	%
Tax			3,716				2,987				729			NM
Net Income		$	8,833			$	7,112			$	1,721			24.2	%
Ratios		6/30/2022				6/30/2021				Y-O-Y Change
Net Loan to Deposits			88.89	%			80.19	%			8.70	%
ALLL/Gross Loans			1.46	%			1.78	%			-0.32	%
NPAs/Total Assets			0.26	%			0.24	%			0.02	%
Tier One Leverage Ratio			10.24	%			10.86	%			-0.62	%
YTD ROAA (annualized)			1.70	%			1.71	%			-0.01	%
YTD ROAE (annualized)			17.04	%			15.65	%			1.39	%
Net Interest Margin (QTD)			3.64	%			3.23	%			0.41	%
Net Interest Margin (YTD)			3.54	%			3.26	%			0.28	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220729005532/en/

Dong Il Kim

(714) 620-8888

Source: US Metro Bancorp

FAQ

What are the earnings results for US Metro Bancorp in Q2 2022?

US Metro Bancorp reported earnings of $4.22 million for Q2 2022, a 21% increase year-to-date.

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

Loans increased by 40% annually, reaching $247.5 million.

What was the EPS for US Metro Bancorp in Q2 2022?

The EPS for Q2 2022 was $0.26, up from $0.23 in Q1 2022.

What is the current financial position of US Metro Bancorp?

As of June 30, 2022, US Metro Bancorp has total assets of $1.1 billion and strong capital and liquidity.

What changes were reported in the SBA premium income for US Metro Bancorp?

SBA premium income declined to $5.1 million for the first half of 2022, down from $6.5 million in 2021.