US Metro Bancorp (OTCQX: USMT): US Metro Bancorp (“Bancorp”), the parent company of US Metro Bank (“Bank”), today announced the successful closing of its private placement of $15.9 million aggregate principal amount 6.00% Fixed Interest Rate Subordinated Debt Notes (the “Notes”) on March 31, 2025. The Notes will mature on March 31, 2028, and will bear interest at a rate equal to 6.00% per annum payable on a quarterly basis in arrears. Bancorp will use the proceeds for general corporate purposes including organic growth and/or repayment of certain existing debt instruments.
Additionally, Bancorp announced the redemption of $10.0 million 5.25% Fixed to Floating Rate Subordinated Notes with a Floating Rate Period commencement on April 1, 2025. Bancorp has elected to redeem the $10.0 million Subordinated Notes on April 14, 2025 (the “Redemption Date”).
“We are pleased with the results of our subordinated debt capital raise. This capital raise allows US Metro Bancorp to refinance higher floating rate debt and strengthens our balance sheet and overall business model,” said CEO Dong Il Kim.
US Metro Bank is a California chartered, full service commercial bank headquartered in Garden Grove, California. The Bank opened for business on September 15, 2006, and offers deposit and loan products (including commercial real estate, commercial and industrial, mortgage, SBA and USDA loans), as well as related banking services to its customers.
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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