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 full year 2019, reporting year over year loan growth of $104.1 million or 36%. Earnings per share (EPS) of $0.32 per share on 16,230,000 shares for the full year ended December 31, 2019 compares to EPS of $0.25 per share on 16,230,000 shares for the same time period in 2018. Deposits grew $144.4 million or 43% over December 2018. Full year earnings in 2019 were $5,239,000 an increase of $1,205,000 over the $4,034,000 earned in 2018, an annual increase of 30%. The opening of the Bank’s Fullerton Branch in early December 2018 accounted for $56.7 million of the total deposit growth while the opening of the new Torrance Branch in December 2019, accounted for $26.7 million of the $144.4 million in annual deposit growth for the Bank. The 36% loan growth from a year earlier helped the Net Interest Income increase $4.0 million or 28% for the full year. SBA premium income of $3.1 million decreased slightly from the $3.2 million recorded in 2018. Net income of $1,645,000 for the three months ending December 31, 2019 compares to $1,543,000 reported for the same three months ending September 30, 2019, a quarterly increase of $102,000 or 7%. Earnings per share (EPS) of $0.101 per share on 16,230,000 shares for the quarter ended December 31, 2019 compares to EPS of $0.095 per share on 16,230,000 shares for quarter ended September 30, 2019.
The Bank reported total assets of $542.3 million as of December 31, 2019, representing a 39.5% increase compared to the reporting period ending December 31, 2018 and a 6.9% increase over the third 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. On December 20, 2019 a sixth branch was opened in Torrance, California. As of December 31, 2019, the Wilshire branch recorded a total deposit base of $89.6 million including $14.4 million in non-interest bearing deposits. The Fashion District Branch had $77.2 million in total deposits at December 31, 2019 including $26.6 million in non-interest bearing deposits. The Fullerton Branch recorded a deposit base of $79.4 million with $8.3 million in non-interest bearing deposits at year end 2019 and the new Torrance Branch had $26.7 million in deposits at December 31, 2019 including $11.1 million in non-interest bearing deposits. Total Bank deposits ended the year at $477.2 million, a 43% increase from $332.8 million at December 31, 2018 and compares to $442.1 million at September 30, 2019, a 7.9% increase. Total Bank loans totaled $393.6 million compared to $289.5 million a year earlier at December 31, 2018, a 36% increase and increased from $382.1 million at September 30, 2019, a 3% increase.
SBA loan originations for the year ending December 31, 2019 were $70.0 million compared to $65.4 million for the full year 2018. The Bank sold $52.1 million in SBA loans for a gain of $3.1 million for the year ended December 31, 2019 compared to $49.0 million in SBA loan sales and a gain of $3.2 million for the year ended December 31, 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 0.17% compared to 0.10% as of December 31, 2018. The Bank had no Other Real Estate Owned at December 31, 2019. Allowance for loan and lease losses (ALLL) to gross loans has decreased from 1.35% as of December 31, 2018 to 1.32% as of December 31, 2019. The reason for the decrease is a 36% annual growth in loans from December 31, 2018. Accordingly, the Bank booked $1.6 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 2020 and look forward to the continuing profitable deployment of our capital.”
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 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.
FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||
At or for the Three Months Ended |
|||||||||||||||||
12/31/2019 |
|
9/30/2019 |
|
% Change |
|
12/31/2018 |
|
% Change |
|||||||||
Net Income | $ |
1,645 |
|
$ |
1,543 |
|
6.61 |
% |
$ |
1,012 |
|
62.55 |
% |
||||
Net Income Per Share (Basic) | $ |
0.10 |
|
$ |
0.10 |
|
0.00 |
% |
$ |
0.06 |
|
66.67 |
% |
||||
ROAA (Annualized) |
|
1.27 |
% |
|
1.26 |
% |
0.01 |
% |
|
1.02 |
% |
0.25 |
% |
||||
ROAE (Annualized) |
|
11.45 |
% |
|
11.06 |
% |
0.39 |
% |
|
7.74 |
% |
3.72 |
% |
||||
Assets | $ |
542,288 |
|
$ |
507,248 |
|
6.91 |
% |
$ |
388,874 |
|
39.45 |
% |
||||
Gross Loans | $ |
393,648 |
|
$ |
382,091 |
|
3.02 |
% |
$ |
289,529 |
|
35.96 |
% |
||||
Net Loans | $ |
388,442 |
|
$ |
377,269 |
|
2.96 |
% |
$ |
285,631 |
|
35.99 |
% |
||||
Deposits | $ |
477,180 |
|
$ |
442,098 |
|
7.94 |
% |
$ |
332,797 |
|
43.38 |
% |
||||
Non-Interest Bearing Deposits | $ |
112,639 |
|
$ |
112,854 |
|
-0.19 |
% |
$ |
69,063 |
|
63.10 |
% |
||||
Efficiency Ratio |
|
57.82 |
% |
|
57.26 |
% |
0.57 |
% |
|
67.25 |
% |
-9.42 |
% |
||||
Net Interest Margin |
|
4.13 |
% |
|
4.08 |
% |
0.04 |
% |
|
4.07 |
% |
0.06 |
% |
||||
BALANCE SHEET (unaudited) | ||||||||||||||
(All amounts in thousands except per share information) | ||||||||||||||
Assets | 12/31/2019 |
12/31/2018 |
Y-O-Y Change |
|||||||||||
Cash and Due From Bank | $ |
13,074 |
|
$ |
12,194 |
|
$ |
880 |
|
7.2 |
% |
|||
Investments and Fed Funds Sold | $ |
125,781 |
|
$ |
80,882 |
|
|
44,899 |
|
55.5 |
% |
|||
Loans Outstanding |
|
393,648 |
|
|
289,529 |
|
|
104,119 |
|
36.0 |
% |
|||
Loan Loss Reserve |
|
(5,206 |
) |
|
(3,898 |
) |
|
(1,308 |
) |
33.6 |
% |
|||
Other Assets |
|
14,991 |
|
|
10,167 |
|
|
4,824 |
|
47.4 |
% |
|||
Total Assets | $ |
542,288 |
|
$ |
388,874 |
|
$ |
153,414 |
|
39.5 |
% |
|||
Liabilities and Capital | 12/31/2019 |
12/31/2018 |
Y-O-Y Change |
|||||||||||
Deposits | $ |
477,180 |
|
$ |
332,797 |
|
$ |
144,383 |
|
43.4 |
% |
|||
Borrowings |
|
4,172 |
|
|
1,500 |
|
|
2,672 |
|
178.1 |
% |
|||
Other Liabilities |
|
2,775 |
|
|
1,751 |
|
|
1,024 |
|
58.5 |
% |
|||
Equity |
|
58,161 |
|
|
52,826 |
|
|
5,335 |
|
10.1 |
% |
|||
Total Liabilities and Capital | $ |
542,288 |
|
$ |
388,874 |
|
$ |
153,414 |
|
39.5 |
% |
|||
STATEMENT OF OPERATIONS | Three Months Ended |
|||||||||||||
Income Statement | 12/31/2019 |
|
12/31/2018 |
|
Q-O-Q Change |
|||||||||
Interest Income | $ |
6,902 |
|
$ |
5,048 |
|
$ |
1,854 |
|
36.7 |
% |
|||
Interest Expense |
|
1,774 |
|
|
1,180 |
|
|
594 |
|
50.3 |
% |
|||
Net Interest Income |
|
5,128 |
|
|
3,868 |
|
|
1,260 |
|
32.6 |
% |
|||
Provision for Loan Losses |
|
400 |
|
|
300 |
|
|
100 |
|
33.3 |
% |
|||
Other Income |
|
1,352 |
|
|
1,057 |
|
|
295 |
|
27.9 |
% |
|||
Operating Expenses |
|
3,747 |
|
|
3,312 |
|
|
435 |
|
13.1 |
% |
|||
Tax |
|
688 |
|
|
302 |
|
|
387 |
|
128.2 |
% |
|||
Net Income | $ |
1,645 |
|
$ |
1,012 |
|
$ |
634 |
|
62.6 |
% |
|||
Net Income Per Share (Basic) | $ |
0.10 |
|
$ |
0.06 |
|
||||||||
Ending Common Shares O/S |
|
16,230,000 |
|
|
16,230,000 |
|
||||||||
STATEMENT OF OPERATIONS | Twelve Months Ended |
|
|
|||||||||||
Income Statement | 12/31/2019 |
|
12/31/2018 |
|
Y-O-Y Change |
|||||||||
Interest Income | $ |
24,745 |
|
$ |
17,609 |
|
$ |
7,136 |
|
40.5 |
% |
|||
Interest Expense |
|
6,576 |
|
|
3,406 |
|
|
3,170 |
|
93.1 |
% |
|||
Net Interest Income |
|
18,169 |
|
|
14,203 |
|
|
3,966 |
|
27.9 |
% |
|||
Provision for Loan Losses |
|
1,600 |
|
|
960 |
|
|
640 |
|
N/A |
|
|||
Other Income |
|
5,343 |
|
|
4,850 |
|
|
493 |
|
10.2 |
% |
|||
Operating Expenses |
|
14,384 |
|
|
12,271 |
|
|
2,113 |
|
17.2 |
% |
|||
Tax |
|
2,289 |
|
|
1,788 |
|
|
501 |
|
NM |
|
|||
Net Income* | $ |
5,239 |
|
$ |
4,034 |
|
$ |
1,205 |
|
29.9 |
% |
|||
Net Income Per Share (Basic) | $ |
0.32 |
|
$ |
0.25 |
|
||||||||
Ending Common Shares O/S |
|
16,230,000 |
|
|
16,230,000 |
|
||||||||
Ratios | 12/31/2019 |
|
12/31/2018 |
|
Y-O-Y Change |
|||||||||
Net Loan to Deposits |
|
81.40 |
% |
|
85.83 |
% |
|
-4.42 |
% |
|||||
ALLL/Gross Loans |
|
1.32 |
% |
|
1.35 |
% |
|
-0.02 |
% |
|||||
NPAs/Total Assets |
|
0.17 |
% |
|
0.10 |
% |
|
0.07 |
% |
|||||
Tier One Leverage Ratio |
|
10.89 |
% |
|
12.87 |
% |
|
-1.97 |
% |
|||||
Book Value Per Share (Basic) | $ |
3.58 |
|
$ |
3.25 |
|
$ |
0.33 |
|
|||||
YTD ROAA (annualized) |
|
1.12 |
% |
|
1.14 |
% |
|
-0.02 |
% |
|||||
YTD ROAE (annualized) |
|
9.49 |
% |
|
7.93 |
% |
|
1.56 |
% |
|||||