US Metro Bancorp Announces First Quarter 2021 Financial Results

123% Increase in Earnings 1^st Qtr. 2021 over 1^st Qtr. 2020

Year-over-Year US Metro Bank (only):

47% Annual Increase in Loans

47% Annual Increase in Deposits

US Metro Bancorp (OTC Pink: USMT): Mr. Dong Il Kim, President and CEO, announced US Metro Bancorp and US Metro Bank’s financial results for the first quarter 2021. As of January 2, 2020, US Metro Bancorp (“Bancorp”), a small bank holding company (BHC), was formed, making US Metro Bank its lone subsidiary. On a consolidated basis the Bancorp earned $2,288,000 in the first quarter of 2021 compared to $1,025,000 in the first quarter of 2020, a 123% increase, and compared to earnings of $1,425,000 for the three months ending December 31, 2020. On a year-to-date basis the Bancorp recorded a return on average assets (“ROAA”) of 1.13% and a return on average equity (“ROAE”) of 14.25%. With 16,230,000 shares outstanding, earnings per share (“EPS”) for the first quarter was $0.14 compared to $0.06 in the first quarter last year and $0.09 for the fourth quarter of 2020. At March 31, 2021, the Bancorp’s Book Value was $4.01 compared to $3.65 per share a year earlier.

US Metro Bank recorded year-over-year loan growth of $194.7 million or 47%. Included in the annual loan growth is $88 million in net Payroll Protection Program (PPP) loans booked through the first quarter 2021. Deposits grew $243.4 million or 47% over March 31, 2020. The opening of the Bank’s Torrance Branch in December 2019 accounted for $37.5 million of the total deposit growth with a total of $78.8 million in deposits as of March 31, 2021. Four of the other five branches have total deposits of over $100 million each. Net Interest Income increased $1.5 million or 29% for the first quarter compared to the first quarter a year earlier with interest income increasing $0.3 million while interest expense decreased $1.1 million. SBA premium income for the three months ending March 31, 2021, was $1.6 million compared to $0.5 million for the same period in 2020, an increase of 220%. Net income of $2,639,000 for the three months ending March 31, 2021 compares to $1,025,000 reported for the same three months in 2020, a year-over-year increase of $1.6 million or 158%.

The Bank reported total assets of $859.7 million as of March 31, 2021, representing a 46% increase compared to the reporting period ending March 31, 2020. 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 March 31, 2021, the Wilshire branch recorded a total deposit base of $103.6 million, including $24.4 million in non-interest bearing deposits. The Fashion District Branch had $116.3 million in total deposits at March 31, 2021, including $51.8 million in non-interest bearing deposits. The Fullerton Branch recorded a deposit base of $178.2 million with $38.2 million in non-interest bearing deposits at March 31, 2021, and the new Torrance Branch had $78.8 million in deposits at March 31, 2021, including $22.2 million in non-interest bearing deposits. Total Bank deposits ended the first quarter of 2021 at $757.1 million, a 47% increase from $513.7 million at March 31, 2020. Non-interest bearing deposits grew to $243.3 million at March 31, 2021 from $122.3 million at March 31, 2020, an increase of 99%.

SBA loan originations for the first quarter ending March 31, 2021 were $19.0 million compared to $9.1 million for the first quarter 2020. Due to the COVID-19 pandemic and the uncertainty of the current economic climate, the Bank closed three of its four SBA Loan Production Offices on April 15, 2020. The Dallas LPO remained open in 2020, and in November the Bank reopened the Seattle LPO.

Loan quality remains good with non-performing assets as a percent of total assets of 0.20% at March 31, 2021 compared to 0.16% as of March 31, 2020. The Bank had no Other Real Estate Owned at March 31, 2020. Allowance for loan and lease losses (ALLL) to gross loans was 1.66% as of March 31, 2021 compared to 1.35% as of March 31, 2020. Excluding PPP Loans, the ALLL was 1.94% of gross loans at March 31, 2021. With the uncertainty in the economy related to the COVID-19 pandemic, the Bank recorded $0.9 million in provision for loan loss expense for the three months ending March 31, 2021 compared to $0.5 million recorded for the three months ending March 31, 2020.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during the first quarter of 2021. However, beginning with the interest rate decreases seen mid-March of last year, earnings on liquid investments have decreased substantially. Fortunately SBA loan demand has been positive. The Bank has been proactive in implementing elements of the Strategic Plan and has formed a Mortgage Finance Group which has contributed $60.7 million in outstanding mortgage warehouse loans as of March 31, 2021. Through the COVID-19 pandemic economic stimulus programs, the Bank funded a total of $150 million in PPP loans of which $88 million are still outstanding as of March 31, 2021. During 2020 the Bank provided loan modifications for loans totaling $150 million for our borrowers. As of March 31, 2021 there remains only $8 million on modified terms. We have implemented the Bank’s Pandemic Contingency Plan with staff working remotely if possible and practicing social distancing through telecommunication meetings and rotating staff through shelter at home practices. Capital and Liquidity remain strong and USMB is well positioned to manage through the Pandemic,” said Mr. Kim.

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 and Torrance, and with loan production offices in Dallas and Seattle. 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.

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