US Metro Bancorp Raises $15.9M in Subordinated Notes and Redeems $10M Note
On March 31, 2025, US Metro Bancorp (OTCQX: USMT), the parent company of US Metro Bank, announced the successful completion of a private placement of $15.9 million in aggregate principal amount of 6.00% fixed interest rate subordinated debt notes. These notes are set to mature on March 31, 2028, and will bear interest at a fixed rate of 6.00% per annum, payable quarterly in arrears. The proceeds from this offering are intended for general corporate purposes, including supporting organic growth and repaying certain existing debt instruments.
In conjunction with this capital raise, US Metro Bancorp also declared the redemption of $10.0 million in 5.25% fixed-to-floating rate subordinated notes. These notes were scheduled to transition to a floating rate period commencing on April 1, 2025. The company elected to redeem these notes on April 14, 2025.
CEO Dong Il Kim commented on these financial maneuvers, stating, “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.”
US Metro Bank, a California-chartered full-service commercial bank headquartered in Garden Grove, California, commenced operations on September 15, 2006. The bank offers a range of deposit and loan products, including commercial real estate, commercial and industrial, mortgage, SBA, and USDA loans, along with related banking services to its customers.
Certainly! Here’s a rewritten version of the provided forward-looking statement section, expanded to approximately 400 words:
This announcement includes forward-looking statements, which reflect US Metro Bancorp’s current views and expectations regarding future events and financial performance. These statements are based on assumptions and estimates made by the company’s management in light of current conditions, historical data, and anticipated developments in the financial and business environment. However, actual results may differ materially from those expressed or implied in these forward-looking statements due to a variety of known and unknown risks and uncertainties.
Several key factors could impact the company’s future performance. Market interest rates may fluctuate unpredictably, influencing the cost of funds and the yield on interest-earning assets. Similarly, changes in the competitive landscape may force the company to adjust pricing on loans and deposits, potentially affecting margins and profitability.
Additionally, broader economic conditions—whether nationwide or within the specific markets the company serves—can significantly influence business outcomes. A downturn in the economy could reduce borrower creditworthiness, increase default rates, or suppress loan demand. Regional economic pressures may also have an outsized effect on performance given the company’s focused geographic footprint.
The success of US Metro Bancorp also depends on its ability to maintain and grow relationships with valued clients, referral partners, and other business affiliates. A loss of trust or connectivity with these groups could lead to reduced business opportunities and slower growth.
Moreover, the company’s continued performance hinges on attracting and retaining experienced and productive personnel. The departure of key employees, particularly those in senior management or revenue-generating roles, could disrupt operations and impact future growth strategies.
There may also be additional risks and uncertainties that the company is not currently aware of or that it currently views as immaterial, which could also affect performance. These and other risk factors are described in greater detail in the company’s publicly available filings and annual reports.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. US Metro Bancorp undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Investors and stakeholders are encouraged to consult the company’s SEC filings for a more detailed discussion of risk factors and potential future developments.
Let me know if you’d like a more technical or investor-friendly tone!
