US Metro Bank Announces Third Quarter 2019 Financial Results

46% Annual Increase in Loans

40% Annual Increase in Deposits

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 third quarter 2019, reporting year over year loan growth of $119.8 million or 46%. Deposits grew $126.5 million or 40% over the third quarter last year. The opening of the Bank’s Fullerton Branch in early December 2018 accounted for $74.3 million of the total deposit growth. The 46% loan growth from a year earlier helped the Net Interest Income increase $1.1 million or 29% for the third quarter compared to the third quarter a year earlier. SBA premium income recorded an increase over the same third quarter of last year increasing $569 thousand or 90% on higher SBA origination volumes during the third quarter 2019 compared to the third quarter a year earlier. Net income of $1,543,000 for the three months ending September 30, 2019 compares to $971,000 reported for the same three months in 2018, a year over year increase of $572 thousand or 59%. Earnings per share (EPS) of $0.10 per share on 16,230,000 shares for the quarter ended September 30, 2019 compares to EPS of $0.06 per share on 16,230,000 shares for the same time period in 2018.

The Bank reported total assets of $507.2 million as of September 30, 2019, representing a 36.8% increase compared to the reporting period ending September 30, 2018 and a 7.2% increase over the second quarter 2019. In 2017 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. As of September 30, 2019 the Wilshire branch recorded a total deposit base of $82.8 million including $15.6 million in non-interest bearing deposits. The Fashion District Branch had $72.7 million in total deposits at September 30, 2019 including $29.6 million in non-interest bearing deposits and the new Fullerton Branch recorded a deposit base of $74.3 million with $9.4 million in non-interest bearing deposits. Total Bank deposits ended the quarter at $442.1 million, a 40.0% increase from $315.6 million at September 30, 2018 and compares to $410.3 million at June 30, 2019, a 7.8% increase. Total Bank loans totaled $382.1 million compared to $262.3 million a year earlier at September 30, 2018, a 45.7% increase and increased from $324.9 million at June 30, 2019, a 17.6% increase. During the third quarter 2019 the Bank received all regulatory approvals to open its sixth branch in Torrance, California with an expected opening in late 2019.

SBA loan originations for the quarter ending September 30, 2019 were $25.1 million compared to $12.6 million for the second quarter in 2019. The Bank sold $18.9 million in SBA loans for a gain of $1.2 million for the quarter ended September 30, 2019 compared to $10.3 million in SBA loan sales and a gain of $0.6 million for the quarter ended September 30, 2018. During the first quarter 2019 the Bank opened its third SBA Loan Production Office (LPO) in New York City and in the second quarter the Bank opened its fourth SBA LPO in Atlanta, Georgia.

Loan quality remains good with non-performing assets as a percent of total assets of 0.04% compared to 0.13% as of September 30, 2018. The Bank had no Other Real Estate Owned at September 30, 2019. Allowance for loan and lease losses (ALLL) to gross loans has decreased from 1.44% as of September 30, 2018 to 1.26% as of September 30, 2019. The reason for the decrease is a 45.7% annual growth in loans from September 30, 2018. Accordingly the Bank booked $1.2 million 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, New York City and Atlanta. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191027005035/en/

Dong Il Kim
(714) 620-8888

Source: US Metro Bank

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