Market Overview

US Metro Bank Announces Second Quarter 2018 Financial Results

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32% Annual Increase in Assets

US
Metro Bank
(OTC:USMT) Mr. Dong Il Kim, President and CEO,
announced the bank's financial results for the second quarter 2018,
reporting net income of $860,000 for the three months ending June 30,
2018 compared to $1,130,000 reported for the same three months in 2017.
Earnings per share (EPS) of $0.05 per share on 16,230,000 shares for the
quarter ended June 30, 2018 compares to EPS of $0.07 per share on
16,130,000 shares for the same time period in 2017. The second quarter
earnings were impacted with one-time expenses associated with the
acquisition of the location for a new branch to be opened in the Buena
Park/Fullerton California area. The 2018 earnings reflect the lower
federal tax rate, effective January 1, 2018.

The Bank reported total assets of $347.4 million as of June 30, 2018,
representing a 31.7% increase compared to the reporting period ending
June 30, 2017 and a 5.3% increase over the first 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. As of June 30, 2018 the
Wilshire branch recorded a total deposit base of $75.9 million including
$15.2 million in non-interest bearing deposits. The new Fashion District
Branch had $41.1 million in total deposits at June 30, 2018 including
$8.8 million in non-interest bearing deposits. Total Bank loans totaled
$250.8 million compared to $178.2 million a year earlier at June 30,
2017, a 40.8% increase and increased from $228.2 million at March 31,
2018, a 9.9% increase. Total Bank deposits ended the quarter at $293.9
million, a 36.5% increase from $215.3 million at June 30, 2017 and
compares to $276.8 million at March 31, 2018, a 6.2% increase.

SBA loan originations for the quarter ending June 30, 2018 were $17.1
million compared to $19.0 million for the first quarter in 2018. The
Bank sold $11.5 million in SBA loans for a net gain of $0.8 million for
the quarter ended June 30, 2018 compared to $24.0 million in SBA loan
sales and a net gain of $1.6 million for the quarter ended June 30, 2017.

Loan quality remains good with non-performing assets as a percent of
total assets of 0.18% compared to 0.08% as of June 30, 2017. The Bank
had no Other Real Estate Owned at June 30, 2018. Allowance for loan and
lease losses (ALLL) to gross loans has decreased from 1.86% as of June
30, 2017 to 1.49% as of June 30, 2018. The reason for the decrease is a
40.8% annual growth in loans from June 30, 2017. Accordingly the Bank
booked $410,000 of provision expense during first two quarters 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 new Wilshire Branch,
Seattle LPO and the Fashion District Branch in Downtown Los Angeles,"
said CEO Kim. "We are excited about continuing the growth of the Bank in
2018 and look forward to the future profitable deployment our new
capital. We are pleased to announce, after receiving all regulatory
approvals, US Metro Bank is opening its fifth full service banking
office located on the border between Buena Park and Fullerton California
and will be known as our Fullerton branch."

US Metro Bank is a California chartered, full service commercial
nonmember bank headquartered in Garden Grove, California with four
branch offices in California - Garden Grove, Anaheim, Koreatown/Los
Angeles, Fashion District/Los Angeles and loan production offices in
Dallas, Texas and Seattle, Washington. 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
    6/30/2018       3/31/2018     % Change       6/30/2017     % Change  
Net Income $ 860 $ 1,192 -27.85 % $ 1,130 -23.89 %
Net Income Per Share (Basic) $ 0.05 $ 0.07 -28.57 % $ 0.07 -28.57 %
ROAA (Annualized) 1.04 % 1.46 % -0.43 % 1.89 % -0.85 %
ROAE (Annualized) 6.82 % 9.67 % -2.86 % 9.78 % -2.97 %
Assets $ 347,378 $ 329,888 5.30 % $ 263,781 31.69 %
Gross Loans $ 250,836 $ 228,154 9.94 % $ 178,185 40.77 %
Net Loans $ 247,105 $ 224,735 9.95 % $ 174,874 41.30 %
Deposits $ 293,863 $ 276,822 6.16 % $ 215,322 36.48 %
Non-Interest Bearing Deposits $ 66,677 $ 63,112 5.65 % $ 42,594 56.54 %
Efficiency Ratio 71.68 % 63.71 % 7.97 % 54.28 % 17.40 %
Net Interest Margin 4.55 % 3.85 % 0.71 % 3.96 % 0.59 %
 
BALANCE SHEET (unaudited)              
(All amounts in thousands except per share information)        
Assets   6/30/2018       6/30/2017     Y-O-Y Change
Cash and Due From Bank $ 10,159   $ 7,383   $ 2,776   37.6 %
Investments and Fed Funds Sold $ 79,448 $ 72,793 6,655 9.1 %
Loans Outstanding 250,836 178,185 72,651 40.8 %
Loan Loss Reserve (3,731 ) (3,311 ) (420 ) 12.7 %
Other Assets   10,666     8,731     1,935   22.2 %
Total Assets $ 347,378   $ 263,781   $ 83,597   31.7 %
               
Liabilities and Capital   6/30/2018       6/30/2017     Y-O-Y Change
Deposits $ 293,863 $ 215,322 $ 78,541 36.5 %
Borrowings 1,500 - 1,500 N/A
Other Liabilities 1,188 1,456 (268 ) -18.4 %
Equity   50,827     47,003     3,824   8.1 %

Total Liabilities and Capital

$ 347,378   $ 263,781   $ 83,597   31.7 %
 
STATEMENT OF OPERATIONS Three Months Ended        
Income Statement   6/30/2018       6/30/2017     Q-O-Q Change
Interest Income $ 4,329 $ 2,642 $ 1,687 63.9 %
Interest Expense   711     375     336   89.6 %
Net Interest Income   3,618     2,267     1,351   59.6 %
Provision for Loan Losses 310 - 310 N/A
Other Income 1,054 1,952 (898 ) -46.0 %
Operating Expenses 3,039 2,290 749 32.7 %
Tax   463     799     (336 ) -42.1 %
Net Income $ 860   $ 1,130   $ (270 ) -23.9 %
Net Income Per Share (Basic) $ 0.05 $ 0.07
Ending Common Shares O/S 16,230,000 16,130,000
 
STATEMENT OF OPERATIONS Six Months Ended
Income Statement   6/30/2018       6/30/2017     Y-O-Y Change
Interest Income $ 7,935 $ 4,816 $ 3,119 64.8 %
Interest Expense   1,315   $ 674     641   95.1 %
Net Interest Income   6,620     4,142     2,478   59.8 %
Provision for Loan Losses 410 - (410 ) N/A
Other Income 2,745 3,414 (669 ) -19.6 %
Operating Expenses 5,929 4,311 1,618 37.5 %
Tax   974     (2,153 )   3,127   NM  
Net Income $ 2,052   $ 5,398   $ (2,526 ) -46.8 %
Net Income Per Share (Basic) $ 0.13 $ 0.33
Ending Common Shares O/S 16,230,000 16,130,000
           
Ratios   6/30/2018       6/30/2017     Y-O-Y Change
Net Loan to Deposits 84.09 % 81.22 % 2.87 %
ALLL/Gross Loans -1.49 % -1.86 % 0.37 %
NPAs/Total Assets 0.18 % 0.08 % 0.10 %
Tier One Leverage Ratio 14.70 % 19.33 % -4.63 %
Book Value Per Share (Basic) $ 3.13 $ 2.91 $ 0.22
YTD ROAA (annualized) 1.25 % 4.90 % -3.66 %
YTD ROAE (annualized) 8.23 % 28.65 % -20.42 %

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