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.

Contacts

Dong Il Kim
(714) 620-8888