US Metro Bancorp Announces Third Quarter 2023 Results

Rhea-AI Summary

US Metro Bancorp reports earnings of $2.3 million in Q3 2023, compared to $2.7 million in Q2. Year-to-date EPS is $0.50 compared to $0.74 in 2022. Total assets increase by 9.5% to $1.199 billion. Net interest income decreases to $26.3 million from $29.0 million in the same period last year.

Positive

• US Metro Bancorp reports earnings of $2.3 million in Q3 2023, a decrease from Q2. Year-to-date EPS is $0.50 compared to $0.74 in 2022. Total assets increase by 9.5% to $1.199 billion.

Negative

• Net interest income decreases to $26.3 million from $29.0 million in the same period last year.

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 $2.3 million in the third quarter of 2023, compared to $2.7 million in the second quarter of 2023. For the nine months ending September 30, 2023, the consolidated Bancorp earned $8.1 million compared to $12.0 million for the nine months ending September 30, 2022. On a year-to-date basis, the Bancorp recorded an annualized return on average assets (“ROAA”) of 0.92% and an annualized return on average equity (“ROAE”) of 11.97%. With 16,390,000 shares outstanding, earnings per share (“EPS”) for the third quarter of 2023 was $0.14 compared to $0.17 in the second quarter of 2023. For the nine months ending September 30, 2023, EPS was $0.50 compared to $0.74 for the nine months ending September 30, 2022. On September 30, 2023, the Bancorp’s book value per share was $5.55 compared to $4.92 a year earlier.

The Bank recorded on a year-to-date basis net interest income of $26.3 million compared to $29.0 million in the same period a year earlier. Net income of $9.2 million for the nine months ending September 30, 2023, compares to $13.2 million reported for the same nine months in 2022, a year over year decrease of $4.0 million.

The Bank reported total assets of $1.199 billion as of September 30, 2023, representing a 9.5% increase compared to the reporting period ending September 30, 2022, and year over year loan growth of $68.5 million or 7.7%. Total Bank deposits ended the third quarter of 2023 at $1.037 billion, a $57.4 million or 5.9% increase from $979.3 million on September 30, 2022. Five of the Bank’s seven branches have deposits exceeding $100 million, with two branches having more than $200 million in deposits. The Bank’s newest branch in Lynnwood, Washington has reached $72 million in deposits since opening.

Loan quality remains good with non-performing assets as a percent of total assets of 0.10% on September 30, 2023, compared to 0.24% as of September 30, 2022. The Bank had no Other Real Estate Owned (OREO) on September 30, 2023, and one TDR loan totaling $39 thousand. Allowance for loan and lease losses (ALLL) to gross loans was 1.37% as of September 30, 2023, compared to 1.47% as of September 30, 2022. The Bank recorded a $500 thousand provision for loan loss expense, for the nine months ending September 30, 2023, compared to $1.3 million recorded for the nine months ending September 30, 2022.

“The Bank continues to produce positive financial results as well as growth in both loans and deposits. We are strategically focused on building the Bank’s value in support of our customers.” 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 and SBA 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
	9/30/2023				6/30/2023				% Change				9/30/2022				% Change
Net Income	$	2,309			$	2,662				-13.28	%		$	4,076				-43.36	%
Net Income Per Share (Basic)	$	0.14			$	0.17				-18.31	%		$	0.25				-43.47	%
ROAA (Annualized)		0.78	%			0.93	%			-0.14	%			1.50	%			-0.71	%
ROAE (Annualized)		10.19	%			11.89	%			-1.70	%			20.47	%			-10.28	%
Efficiency Ratio		70.93	%			65.25	%			5.67	%			52.89	%			18.03	%
Assets	$	1,199,631			$	1,157,228				3.66	%		$	1,095,222				9.53	%
Gross Loans	$	960,639			$	963,675				-0.32	%		$	892,144				7.68	%
Deposits	$	1,035,746			$	998,804				3.70	%		$	978,721				5.83	%
Non-Interest Bearing Deposits	$	198,575			$	212,926				-6.74	%		$	319,511				-37.85	%
Common Equity	$	90,937			$	90,344				0.66	%		$	80,515				12.94	%
Ending Common Shares O/S		16,390,000				16,390,000								16,360,000
Book Value Per Common Shares	$	5.55			$	5.51			$	0.04			$	4.92			$	0.63
At or for the Nine Months Ended
	9/30/2023				9/30/2022				Y-O-Y Change
Net Income	$	8,136			$	11,976			$	(3,840	)			-32.07	%
Net Income Per Share (Basic)	$	0.50			$	0.74			$	(0.24	)			-32.48	%
ROAA (Annualized)		0.92	%			1.47	%			-0.55	%			-37.24	%
ROAE (Annualized)		11.97	%			20.05	%			-8.08	%			-40.30	%
Efficiency Ratio		66.08	%			50.96	%			15.11	%			29.66	%
Assets	$	1,199,631			$	1,095,222			$	104,409				9.53	%
Gross Loans (Excl. Loans HFS)	$	949,987			$	892,144			$	57,843				6.48	%
Deposits	$	1,035,746			$	978,721			$	57,025				5.83	%
Non-Interest Bearing Deposits	$	198,575			$	319,511			$	(120,936	)			-37.85	%
Common Equity	$	90,937			$	80,515			$	10,422				12.94	%
Ending Common Shares O/S		16,390,000				16,360,000				30,000				0.18	%
Book Value Per Common Shares	$	5.55			$	4.92			$	0.63				12.74	%
US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets	9/30/2023				9/30/2022				Y-O-Y Change
Cash and Due From Bank	$	12,511			$	13,182			$	(671	)			-5.1	%
Investments and Fed Funds Sold	$	204,547			$	172,454				32,093				18.6	%
Loans Outstanding		960,639				892,144				68,495				7.7	%
Loan Loss Reserve		(13,117	)			(13,116	)			(1	)			0.0	%
Other Assets		34,364				29,910				4,454				14.9	%
Total Assets	$	1,198,944			$	1,094,574			$	104,370				9.5	%
Liabilities and Capital	9/30/2023				9/30/2022				Y-O-Y Change
Deposits	$	1,036,776			$	979,330			$	57,446				5.9	%
Borrowings		30,749				6,440				24,309				377.5	%
Other Liabilities		16,101				3,461				12,640				365.2	%
Equity		115,318				105,343				9,975				9.5	%
Total Liabilities and Capital	$	1,198,944			$	1,094,574			$	104,370				9.5	%
STATEMENT OF OPERATIONS	Three Months Ended
Income Statement	9/30/2023				6/30/2023				Q-O-Q Change
Interest Income	$	17,252			$	16,006			$	1,246				7.8	%
Interest Expense		8,713				7,607				1,106				14.5	%
Net Interest Income		8,539				8,399				139				1.7	%
Provision for Loan Losses		-				300				(300	)
Other Income		2,843				3,713				(870	)			-23.4	%
Operating Expenses		7,522				7,627				(106	)			-1.4	%
Tax		1,100				1,250				(150	)			-12.0	%
Net Income	$	2,760			$	2,935			$	(175	)			-5.9	%
STATEMENT OF OPERATIONS	Nine Months Ended
Income Statement	9/30/2023				9/30/2022				Y-O-Y Change
Interest Income	$	48,513			$	31,780			$	16,733				52.7	%
Interest Expense		22,193				2,775				19,418				699.7	%
Net Interest Income		26,320				29,005				(2,685	)			-9.3	%
Provision for Loan Losses		500				1,300				(800	)			-61.5	%
Other Income		9,658				9,688				(30	)			-0.3	%
Operating Expenses		22,674				18,506				4,168				22.5	%
Tax		3,650				5,680				(2,030	)			-35.7	%
Net Income	$	9,154			$	13,207			$	(4,053	)			-30.7	%
Ratios	9/30/2023				9/30/2022				Y-O-Y Change
Net Loan to Deposits		91.39	%			89.76	%			1.63	%
ALLL/Gross Loans		1.37	%			1.47	%			-0.10	%
NPAs/Total Assets		0.10	%			0.24	%			-0.14	%
Tier One Leverage Ratio		10.33	%			10.31	%			0.02	%
YTD ROAA (annualized)		1.06	%			1.66	%			-0.61	%
YTD ROAE (annualized)		10.72	%			16.83	%			-6.11	%
Net Interest Margin (QTD)		2.91	%			4.06	%			-1.15	%
Net Interest Margin (YTD)		3.11	%			3.73	%			-0.61	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231027267270/en/

Jeremy Johnson

(714) 620-8888

Source: US Metro Bancorp

FAQ

What were US Metro Bancorp's earnings in Q3 2023?

US Metro Bancorp earned $2.3 million in Q3 2023.

What is the year-to-date EPS for US Metro Bancorp?

The year-to-date EPS for US Metro Bancorp is $0.50.

How much did total assets increase by?

Total assets increased by 9.5% to $1.199 billion.

What happened to net interest income?

Net interest income decreased to $26.3 million from $29.0 million in the same period last year.