US Metro Bank Announces First Quarter 2019 Financial Results

41% Annual Increase in Deposits

25% Annual Increase in Loans

GARDEN GROVE, Calif.--(BUSINESS WIRE)-- US Metro Bank (OTC Pink: USMT) Mr. Dong Il Kim, President and CEO, announced the bank’s financial results for the first quarter 2019, reporting year over year deposit growth of $112.0 million or 41%. The opening of the Bank’s Fullerton Branch in early December 2018 accounted for $43.5 million of the total deposit growth. Loans grew 25% from a year earlier helping the Net Interest Income increase $1.1 million or 37% for the first quarter. Net SBA premium income recorded a significant decrease over the same first quarter of last year declining $726 thousand or 56% on lower SBA origination volumes during the first quarter 2019. The resulting net income of $931,000 for the three months ending March 31, 2019 compares to $1,193,000 reported for the same three months in 2018, a year over year decrease of $262 thousand or 22%. Earnings per share (EPS) of $0.06 per share on 16,230,000 shares for the quarter ended March 31, 2019 compares to EPS of $0.07 per share on 16,230,000 shares for the same time period in 2018.

The Bank reported total assets of $450.8 million as of March 31, 2019, representing a 36.6% increase compared to the reporting period ending March 31, 2018 and a 15.9% increase over the fourth quarter 2018. In 2017 the Bank opened a branch office on April 3, 2017 on Wilshire Boulevard in Koreatown, Los Angeles and a Loan Production Office (LPO) on June 15, 2017 in Seattle, Washington. A new branch in downtown Los Angeles’ Fashion District opened on November 1, 2017. On December 5, 2018 a fifth branch was opened in Buena Park (Fullerton Branch), California. As of March 31, 2019 the Wilshire branch recorded a total deposit base of $79.1 million including $15.8 million in non-interest bearing deposits. The Fashion District Branch had $65.3 million in total deposits at March 31, 2019 including $17.2 million in non-interest bearing deposits and the new Fullerton Branch recorded a deposit base of $43.5 million. Total Bank deposits ended the quarter at $388.8 million, a 40.5% increase from $276.8 million at March 31, 2018 and compares to $332.8 million at December 31, 2018, a 16.8% increase. Total Bank loans totaled $285.6 million compared to $228.2 million a year earlier at March 31, 2018, a 25.2% increase and decreased from $289.5 million at December 31, 2018, a 1.4% decrease. The loan decrease was a result of some large loan payoffs early in 2019.

SBA loan originations for the quarter ending March 31, 2019 were $14.1 million compared to $14.8 million for the fourth quarter in 2018. The Bank sold $9.0 million in SBA loans for a net gain of $0.6 million for the quarter ended March 31, 2019 compared to $18.4 million in SBA loan sales and a net gain of $1.3 million for the quarter ended March 31, 2018. During the first quarter 2019 the Bank opened its third SBA Loan Production Office in New York City.

Loan quality remains good with non-performing assets as a percent of total assets of 0.11% compared to 0.05% as of March 31, 2018. The Bank had no Other Real Estate Owned at March 31, 2019. Allowance for loan and lease losses (ALLL) to gross loans has decreased from 1.50% as of March 31, 2018 to 1.42% as of March 31, 2019. The reason for the decrease is a 25.2% annual growth in loans from March 31, 2018. Accordingly the Bank booked $300,000 of provision expense during 2019 as a result of the loan growth.

“The Board of Directors is pleased with the continued growth and profitability of the Bank while absorbing the additional investment expenses associated with the development of its new branches and loan production offices,” said CEO Kim. “We are excited about the planned growth of the Bank in 2019 and look forward to the continuing profitable deployment of our excess capital.”

US Metro Bank is a California chartered, full service commercial nonmember bank headquartered in Garden Grove, California with five branch offices in California - Garden Grove, Anaheim, Buena Park (Fullerton Branch), Koreatown/Los Angeles, Fashion District/Los Angeles and loan production offices in Dallas, Seattle and New York City. 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.

FINANCIAL HIGHLIGHTS (unaudited)
		At or for the Three Months Ended
			3/31/2019				12/31/2018				% Change				3/31/2018			% Change
Net Income		$	931			$	1,012				-8.00	%		$	1,192			-21.90	%
Net Income Per Share (Basic)		$	0.06			$	0.06				0.00	%		$	0.07			-14.29	%
ROAA (Annualized)			0.91	%			1.02	%			-0.11	%			1.46	%		-0.56	%
ROAE (Annualized)			6.99	%			7.74	%			-0.75	%			9.67	%		-2.68	%
Assets		$	450,752			$	388,874				15.91	%		$	329,888			36.64	%
Gross Loans		$	285,592			$	289,529				-1.36	%		$	228,154			25.18	%
Net Loans		$	281,539			$	285,631				-1.43	%		$	224,735			25.28	%
Deposits		$	388,800			$	332,797				16.83	%		$	276,822			40.45	%
Non-Interest Bearing Deposits		$	84,414			$	69,063				22.23	%		$	63,112			33.75	%
Efficiency Ratio			67.53	%			67.25	%			0.29	%			61.56	%		5.97	%
Net Interest Margin			4.16	%			4.07	%			0.09	%			3.85	%		0.31	%
BALANCE SHEET (unaudited)
(All amounts in thousands except per share information)
Assets			3/31/2019				3/31/2018			Y-O-Y Change
Cash and Due From Bank		$	11,267			$	8,587			$	2,680				31.2	%
Investments and Fed Funds Sold		$	143,675			$	86,832				56,843				65.5	%
Loans Outstanding			285,592				228,154				57,438				25.2	%
Loan Loss Reserve			(4,053	)			(3,419	)			(634	)			18.5	%
Other Assets			14,271				9,734				4,537				46.6	%
Total Assets		$	450,752			$	329,888			$	120,864				36.6	%
Liabilities and Capital			3/31/2019				3/31/2018			Y-O-Y Change
Deposits		$	388,800			$	276,822			$	111,978				40.5	%
Borrowings			5,728				1,500				4,228				281.9	%
Other Liabilities			2,461				1,607				854				53.1	%
Equity			53,763				49,959				3,804				7.6	%
Total Liabilities and Capital		$	450,752			$	329,888			$	120,864				36.6	%
STATEMENT OF OPERATIONS		Three Months Ended
Income Statement			3/31/2019				3/31/2018			Q-O-Q Change
Interest Income		$	5,474			$	3,606			$	1,868				51.8	%
Interest Expense			1,370				604				766				126.8	%
Net Interest Income			4,104				3,002				1,102				36.7	%
Provision for Loan Losses			300				100				200				200.0	%
Other Income			1,046				1,691				(645	)			-38.1	%
Operating Expenses			3,478				2,889				589				20.4	%
Tax			441				511				(70	)			-13.7	%
Net Income		$	931			$	1,193			$	(262	)			-22.0	%
Net Income Per Share (Basic)		$	0.06			$	0.07
Ending Common Shares O/S			16,230,000				16,230,000
Ratios			3/31/2019				3/31/2018			Y-O-Y Change
Net Loan to Deposits			72.41	%			81.18	%			-8.77	%
ALLL/Gross Loans			1.42	%			1.50	%			-0.08	%
NPAs/Total Assets			0.11	%			0.05	%			0.06	%
Tier One Leverage Ratio			12.66	%			14.71	%			-2.06	%
Book Value Per Share (Basic)			$3.31				$3.08				$0.23
YTD ROAA (annualized)			0.91	%			1.46	%			-0.56	%
YTD ROAE (annualized)			6.99	%			9.67	%			-2.68	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20190430006110/en/

Dong Il Kim
(714) 620-8888

Source: US Metro Bank

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Is the global equity rally broadening? UBS weighs in
• Bernstein remains bullish on SpaceX but sees challenges in telecom ambitions
• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics