11% Increase in Earnings YTD 2022 Over YTD 2021

26% Annual Increase in Loans

10% Annual Increase in Deposits

US Metro Bancorp (OTCQX: USMT): Mr. Dong Il Kim, President and CEO, announced US Metro Bancorp and US Metro Bank’s financial results for the third quarter 2022. On a consolidated basis the Bancorp earned $4,076,000 in the third quarter of 2022 compared to $4,220,000 in the second quarter of 2022. For the nine months ending September 30, 2022 the consolidated Bancorp earned $11,976,000 compared to $10,758,000 for the nine months ending September 30, 2021. On a year-to-date basis the Bancorp recorded an annualized return on average assets (“ROAA”) of 1.47% and an annualized return on average equity (“ROAE”) of 20.05%. With 16,360,000 shares outstanding, earnings per share (“EPS”) for the third quarter 2022 was $0.25 compared to $0.26 in the second quarter 2022. For the nine months ended September 30, 2022 EPS was $0.74 compared to $0.66 for the nine months ending September 30, 2021. At September 30, 2022 the Bancorp’s Book Value was $4.92 compared to $4.48 per share a year earlier.

US Metro Bank recorded year over year loan growth of $186.3 million or 26%. Included in the annual loan growth is a decrease of $39.7 million in Payroll Protection Program (PPP) loans. Core loan (non-PPP loans), year over year growth was $226.0 million or 34%. Deposits grew $92.7 million or 11% over September 30, 2021. Net Interest Income increased $8.2 million or 39% for the nine months ending September 30, 2022 compared to the same period a year earlier with interest income increasing $9.0 million while interest expense increased $0.9 million. SBA premium income for the nine months ending September 30, 2022 was $5.7 million compared to $10.0 million for the same period in 2021. Net income of $13,207,000 for the nine months ending September 30, 2022 compares to $11,596,000 reported for the same nine months in 2021, a year over year increase of $1.6 million or 14%.

The Bank reported total assets of $1.1 billion as of September 30, 2022, representing a 10% increase compared to the reporting period ending September 30, 2021. Total Bank deposits ended the third quarter of 2022 at $979.3 million, a 11% increase from $886.6 million at September 30, 2021. Non-interest-bearing deposits grew to $320.1 million at September 30, 2022 from $316.3 million at September 30, 2021 an increase of 1%. The Bank’s Investment Portfolio has a Book Value of $54.4 million as of September 30, 2022, compared to $68.8 million a year earlier. Most of the investments are in mortgage-backed securities and with the recent increases in interest rates, the current unrealized loss in the portfolio, after-tax, is $(9.3) million. All securities are designated Available-For-Sale.

SBA loan originations for the nine months ending September 30, 2022, were $134.0 million compared to $154.0 million for the same nine-month period in 2021. In addition to the existing Loan Production Offices (LPOs) in Dallas, Texas and Seattle Washington, the Bank opened two new LPOs in the third quarter 2021, one in the Inland Empire region of Southern California and one in the Bay Area of Northern California. In January 2022, the Bank opened two more LPOs, one in Fresno, California and one in Sacramento, California.

Credit quality remains good with non-performing assets as a percent of total assets of 0.24% at September 30, 2022, compared to 0.16% as of September 30, 2021. The Bank had no Other Real Estate Owned at September 30, 2022, and TDRs of $1.8 million. Allowance for loan and lease losses (ALLL) to gross loans was 1.47% as of September 30, 2022, compared to 1.66% as of September 30, 2021. The Bank recorded $1.3 million in provision for loan loss expense, for the nine months ending September 30, 2022, compared to $2.7 million recorded for the nine months ending September 30, 2021.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during 2022. Government guaranteed loan demand has been affected by the increased interest rate environment while the Bank has been proactive in implementing elements of the Strategic Plan. The Mortgage Finance Group has contributed a combined $186.9 million in outstanding mortgage warehouse loans and residential mortgages, along with $69.8 million in deposits, as of September 30, 2022. Through the COVID 19 pandemic economic stimulus programs, the Bank funded a total of $112 million in PPP loans of which $1.6 million are still outstanding as of September 30, 2022. During 2020 the Bank provided COVID 19 related loan modifications for loans totaling $150 million for our borrowers. As of September 30, 2022, there are no loans remaining on COVID 19 modified terms. As of this writing, the Bank continues to practice pandemic protocols and conducting virtual meetings whenever possible. Capital and Liquidity remain strong and USMB is well positioned for continued growth,” 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, Torrance and with loan production offices in Dallas, Seattle, Inland Empire of Southern California, Northern California, Fresno and Sacramento. The Bank opened for business on September 15, 2006, and offers deposit and loan products (including commercial real estate, commercial and industrial, SBA loans and real estate mortgages), 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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