USCB Financial Holdings Inc.
01/23/2025 | Press release | Distributed by Public on 01/23/2025 15:00
Regulation FD Presentation (Form 8-K)
1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Fully Diluted EPS of $0.34 for Q42024 and doubles the quarterly dividend
to $0.10 per share; ROAA of 1.08% and ROAE of 12.73%
MIAMI, FL - January 23, 2025 - USCB Financial Holdings, Inc. (the "Company")(NASDAQ: USCB)
, the holding company for
U.S.CenturyBank(the"Bank"),reportednetincomeof$6.9millionor$0.34perfullydilutedshareforthethreemonthsended
December 31, 2024, compared with net income of $2.7 million or $0.14per fully diluted share for the same period in 2023.
"The results in Q4 2024, highlight a record year for USCB.The team outperformed our internal budget and delivered impressive results
for our shareholders. A yearago, we posted $0.14per share in dilutedEPS in Q4 2023and more than doubledthose earnings this quarter
to $0.34 pershare. Our continuedfocus on reducingdeposit costs has contributedto the net interestmargin (NIM) expansion,helping
us maintain solid profitability. While we did experiencean increase in non-interest expense, primarily due to non-routine items, overall
profitability was consistent with thethird quarter. Given the earnings power ofthe Company, outlook for 2025, and strongcapital levels,
the board approved to double the quarterly cash dividend to $0.10 per share. For 2025, we remain focused on managing operating costs
efficiently todrive sustainableperformance anddelivering valueto ourshareholders." saidLuis dela Aguilera,Chairman, President,
and CEO.
Unless otherwise stated,all percentage comparisonsin the bullet pointsbelow are calculatedat or for thequarter ended December 31,
2024 compared to at or for the quarter ended December 31, 2023and annualized where appropriate.
Profitability
•
Annualized return on average assets for the quarter ended December 31, 2024 was 1.08% compared to 0.48% for the fourth quarter
of 2023.
•
Annualized returnon average stockholders'equity for thequarter ended December31, 2024 was12.73% comparedto 5.88%for
the fourth quarter of 2023.
•
The efficiency ratio for the quarter ended December 31,2024 was 55.92% compared to 68.27% for the fourth quarter of 2023.
•
Net interest margin for the quarter ended December 31, 2024was 3.16%compared to 2.65% for the fourth quarter of 2023.
•
Net interest incomebefore provisionfor creditlosses was $19.4million forthe quarter endedDecember 31, 2024,an increase of
$5.0 million or 34.7% compared to the fourth quarter of 2023.
Balance Sheet
•
Totalassetswere$2.6billionatDecember 31,2024,representinganincreaseof$242.1 millionor10.4%from$2.3billionat
December 31, 2023.
•
Total loans heldfor investment were $2.0 billion at December 31,2024, representing an increase of $192.0 million or 10.8% from
$1.8 billion at December 31, 2023.
•
Totaldeposits were$2.2 billion atDecember 31, 2024,representing anincrease of$236.9 million or12.2% from$1.9 billionat
December 31, 2023.
•
Totalstockholders'equitywas$215.4 millionatDecember 31,2024,representinganincreaseof$23.4millionor12.2%from
$192.0millionat December31,2023.Totalstockholders'equityincludedaccumulatedcomprehensiveloss of$44.5 millionat
December 31, 2024 compared to accumulated comprehensive loss of $44.3million at December 31, 2023.
2
Asset Quality
•
The allowancefor creditlosses ("ACL")increased by$3.0 millionto $24.1million atDecember 31, 2024from $21.1million at
December 31, 2023.
•
The ACL represented 1.22%of total loans at December 31, 2024 and 1.18%at December 31, 2023.
•
The provision for credit loss was $1.0million for the quarter ended December31, 2024, a decrease of $445 thousandcompared to
the fourth quarter of 2023.
•
Non-performingloans tototal loanswas 0.14%at December31,2024and0.03%at December31, 2023.Nonperformingloans
totaled $2.7 million at December 31, 2024 and $468 thousand at December31, 2023.
Non-interest Income and Non-interest Expense
•
Non-interestincome was$3.6millionforthethreemonthsended December 31,2024,anincreaseof$2.3millionor173.5%
compared to $1.3 million for the same period in 2023.
•
Non-interestexpensewas$12.9 millionforthethreemonthsendedDecember 31,2024,anincreaseof$2.1millionor19.9%
compared to $10.7 million for the same period in 2023.
•
Non-interest expensefor the three monthsended December 31,2024, increased $1.4million compared tothe three months ended
September 30, 2024 due to routine increases of $362 thousandand non-routine increases of $1.0 million. Routine increases for the
fourth quarter 2024 were: $110thousand increase to salaries andemployee benefits due to merit increasesand higher replacement
costofpersonnel,$218thousandincreaseinconsultingandlegalfeesduetotimingof billingsthroughouttheyear,and$104
thousand increase in other operating expense. Occupancy, regulatory assessment and fees,and network and information technology
had a net decreaseof $70 thousand. Non-routine increasesfor the fourth quarter 2024were: $620 thousand insalaries and employee
benefits due to restricted stockaward expense (a shorter initialvesting period; annual expense wasrecognized in two months), $173
thousandinlegalexpensesforvariousitemswhichtheCompanyexpectsto bereimbursedincomingquarters,$174thousand
increase in other operating expenses due to forced placed-insurance expense related toborrowers which the Company expects to be
reimbursedincomingquarters, and$71thousandduetoexcise taxrelatedtotheCompany'sstockrepurchasespursuanttoits
previouslyannounced stockrepurchase programs.Non-routine expenseshad animpact of($0.04) ondiluted EPSfor thefourth
quarter 2024.
Capital
•
On January 21,2025, the Company'sBoard of Directorsdeclared a quarterlycash dividendof $0.10 pershare of theCompany's
Class A common stock. The dividend will be paid on March 5, 2025 toshareholders of record at the close of business on February
14, 2025.
•
As of December 31, 2024,
total risk-based capital ratios for the Company and the Bank were 13.51% and 13.34%,respectively.
•
Tangible bookvalue per common share (a non-GAAPmeasure) was $10.81 at December 31,2024, representing increase of $1.00
or 10.2% from $9.81 at December31, 2023. At December 31, 2024, tangiblebook value per common share wasnegatively affected
by ($2.24) per share due to anaccumulated comprehensive loss of $44.5 million due to changesin the market value of ouravailable
for sale securities during the fourth quarter.At December 31, 2023, tangible book value per common share was negatively affected
by ($2.26) per share due to an accumulated comprehensive loss of $44.3million.
Conference Call and Webcast
The Company will host a conference call on Friday,January 24, 2025, at 11:00 a.m. Eastern Timeto discuss the Company's unaudited
financial results for the quarter ended December 31, 2024. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to
join the USCB Financial Holdings Call.
Additionally,interestedparties canlisten toa livewebcastof thecall inthe "InvestorRelations" sectionof theCompany'swebsite
at www.uscentury.com.An archived version of the webcast will be available in the same location shortly afterthe live call has ended.
About USCB Financial Holdings, Inc.
USCB Financial Holdings, Inc.is the bank holding company forU.S. Century Bank. Established in 2002,U.S. Century Bank is one of
the largestcommunity banksheadquarteredin Miami,and oneof thelargest communitybanks inthe Stateof Florida.U.S. Century
Bank is rated 5-Stars by BauerFinancial, the nation's leading independentbank rating firm. U.S. Century Bank offers customers a wide
3
range offinancial productsand servicesand supportsnumerous communityorganizations,includingthe GreaterMiami Chamberof
Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about usor to find a banking
center near you, please call (305) 715-5200 or visit www.uscentury.com.
Forward-Looking Statements
This earnings releasemay contain statementsthat are nothistorical in natureand are intendedto be, andare hereby identifiedas, forward-
lookingstatementsforpurposesofthesafeharborprovidedbySection21EoftheSecuritiesExchangeActof1934,asamended.
Forward-looking statements arethose that arenot historical facts.The words "may,""will," "anticipate," "could,""should," "would,"
"believe," "contemplate," "expect," "aim," "plan," "estimate,""seek,""continue," and "intend,", the negative of theseterms, as well as
other similar wordsand expressions ofthe future, areintended to identifyforward-looking statements. These forward-lookingstatements
include, but are not limitedto, statements related to ourprojected growth, anticipated futurefinancial performance, and management's
long-term performance goals, as well as statementsrelating to the anticipated effects on our results ofoperations and financial condition
from expected or potential developments or events, or business andgrowth strategies, including anticipated internal growth and balance
sheet restructuring.
These forward-looking statements involve significant risks and uncertainties that could cause our actualresults to differ materially from
those anticipated in such statements. Potential risks and uncertainties include,but are not limited to:
•
the strength of the United States economy in general and the strength of the localeconomies in which we conduct operations;
•
our ability to successfully manage interest rate risk, credit risk, liquidity risk,and other risks inherent to our industry;
•
theaccuracyofourfinancialstatementestimatesandassumptions,includingtheestimatesusedforourcreditlossreserveand
deferred tax asset valuation allowance;
•
the efficiency and effectiveness of our internalcontrol procedures and processes;
•
our ability to comply withthe extensive laws andregulations to which we aresubject, including the laws foreach jurisdiction where
we operate;
•
adverse changes or conditions in capital and financial markets, includingactual or potential stresses in the banking industry;
•
deposit attrition and the level of our uninsured deposits;
•
legislativeorregulatorychanges andchangesinaccountingprinciples,policies,practices orguidelines,includingthe on-going
effects of the implementation of the Current Expected Credit Losses ("CECL")standard;
•
thelackofasignificantlydiversifiedloanportfolioandtheconcentrationintheSouthFloridamarket,includingtherisksof
geographic,depositor,andindustryconcentrations,includingourconcentrationinloanssecuredbyrealestate,inparticular,
commercial real estate;
•
the effects of climate change;
•
the concentration of ownership of our common stock;
•
fluctuations in the price of our common stock;
•
our ability tofund or accessthe capital marketsat attractive ratesand terms andmanage our growth,both organicgrowth as well
as growth through other means, such as future acquisitions;
•
inflation, interest rate, unemployment rate, and marketand monetary fluctuations;
•
impacts of international hostilities and geopolitical events;
•
increased competitionand its effecton the pricingof our productsand services aswell as ourinterest rate spreadand net interest
margin;
•
the loss of key employees;
•
the effectivenessof our risk managementstrategies, including operationalrisks, including, butnot limited to, client,employee, or
third-party fraud and security breaches; and
•
other risks described in this earnings release and other filings we make with theSecurities and Exchange Commission ("SEC").
All forward-lookingstatements arenecessarily onlyestimates offuture results,and therecan beno assurancethat actualresults will
not differmaterially fromexpectations. Therefore,you arecautioned notto placeundue relianceon anyforward-looking statements.
Further, forward-looking statements included in thisearnings release aremade only asof the datehereof, and weundertake no obligation
to update or revise any forward-looking statement to reflect eventsor circumstances after the date on which the statements are madeor
to reflect the occurrence of unanticipatedevents, unless required to doso under the federal securities laws.Youshould also review the
risk factors described in the reports the Company filed or will file with the SEC.
Non-GAAP Financial Measures
This earnings releaseincludes financial information determinedby methods otherthan in accordancewith generally acceptedaccounting
principles ("GAAP"). This financialinformation includes certainoperating performance measures. Managementhas included thesenon-
GAAPmeasuresbecauseitbelievesthesemeasuresmayprovideusefulsupplementalinformationforevaluatingtheCompany's
operations andunderlying performancetrends. Further,management uses thesemeasures inmanaging andevaluating the Company's
business and intends to refer tothem in discussions about our operationsand performance. Operating performancemeasures should be
viewedinadditionto,andnotasanalternativetoorsubstitutefor,measuresdeterminedinaccordancewithGAAP,andarenot
4
necessarilycomparabletonon-GAAPmeasuresthatmaybepresentedbyothercompanies.Reconciliationsofthesenon-GAAP
measurestothe mostdirectlycomparableGAAP measurescan befoundin the'Non-GAAPReconciliationTables'includedin the
exhibits to this earnings release.
All numbers included in this press release are unaudited unless otherwise noted.
Contacts:
Investor Relations
Media Relations
Martha Guerra-Kattou
5
USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Interest income:
Loans, including fees
$
30,757
$
24,803
$
115,236
$
87,884
Investment securities
2,846
2,511
11,480
10,012
Interest-bearing deposits in financial institutions
564
662
4,517
3,121
Total interest income
34,167
27,976
131,233
101,017
Interest expense:
Interest-bearing checking deposits
338
327
1,509
901
Savings and money market accounts
9,569
9,126
40,098
29,658
Time deposits
3,447
2,733
13,354
8,500
FHLB advances and other borrowings
1,455
1,414
6,336
3,390
Total interest expense
14,809
13,600
61,297
42,449
Net interest income before provision for credit losses
19,358
14,376
69,936
58,568
Provision for credit losses
1,030
1,475
3,157
2,367
Net interest income after provision for credit losses
18,328
12,901
66,779
56,201
Non-interest income:
Service fees
2,667
1,348
8,839
5,055
Gain (loss) on sale of securities available for sale, net
-
(883)
14
(1,859)
Gain on sale of loans held for sale, net
154
105
747
801
Other non-interest income
806
756
3,140
3,406
Total non-interest income
3,627
1,326
12,740
7,403
Non-interest expense:
Salaries and employee benefits
7,930
6,104
28,793
24,429
Occupancy
1,337
1,262
5,258
5,230
Regulatory assessments and fees
405
412
1,766
1,453
Consulting and legal fees
552
642
1,568
1,899
Network and information technology services
494
552
1,993
2,016
Other operating expense
2,136
1,747
7,664
6,781
Total non-interest expense
12,854
10,719
47,042
41,808
Net income before income tax expense
9,101
3,508
32,477
21,796
Income tax expense
2,197
787
7,803
5,251
Net income
$
6,904
$
2,721
$
24,674
$
16,545
Per share information:
Net income per common share, basic
$
0.35
$
0.14
$
1.25
$
0.84
Net income per common share, diluted
$
0.34
$
0.14
$
1.24
$
0.84
Cash dividends declared
$
0.05
$
-
$
0.20
$
-
Weighted average shares outstanding:
Common shares, basic
19,795,589
19,503,043
19,675,444
19,621,698
Common shares, diluted
20,183,731
19,573,350
19,831,421
19,687,634
6
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Income statement data:
Net interest income
$
19,358
$
18,109
$
17,311
$
15,158
$
14,376
Provision for credit losses
1,030
931
786
410
1,475
Net interest income after provision for credit losses
18,328
17,178
16,525
14,748
12,901
Service fees
2,667
2,544
1,977
1,651
1,348
Gain (loss) on sale of securities available for sale, net
-
-
14
-
(883)
Gain on sale of loans held for sale, net
154
109
417
67
105
Other income
806
785
803
746
756
Total non-interest income
3,627
3,438
3,211
2,464
1,326
Salaries and employee benefits
7,930
7,200
7,353
6,310
6,104
Occupancy
1,337
1,341
1,266
1,314
1,262
Regulatory assessments and fees
405
452
476
433
412
Consulting and legal fees
552
161
263
592
642
Network and information technology services
494
513
479
507
552
Other operating expense
2,136
1,787
1,723
2,018
1,747
Total non-interest expense
12,854
11,454
11,560
11,174
10,719
Net income before income tax expense
9,101
9,162
8,176
6,038
3,508
Income tax expense
2,197
2,213
1,967
1,426
787
Net income
$
6,904
$
6,949
$
6,209
$
4,612
$
2,721
Per share information:
Net income per common share, basic
$
0.35
$
0.35
$
0.32
$
0.23
$
0.14
Net income per common share, diluted
$
0.34
$
0.35
$
0.31
$
0.23
$
0.14
Cash dividends declared
$
0.05
$
0.05
$
0.05
$
0.05
$
-
Balance sheet data (at period-end):
Cash and cash equivalents
$
77,035
$
38,486
$
77,261
$
126,546
$
41,062
Securities available-for-sale
$
260,221
$
259,527
$
236,444
$
259,992
$
229,329
Securities held-to-maturity
$
164,694
$
167,001
$
169,606
$
173,038
$
174,974
Total securities
$
424,915
$
426,528
$
406,050
$
433,030
$
404,303
Loans held for investment
(1)
$
1,972,848
$
1,931,362
$
1,869,249
$
1,821,196
$
1,780,827
Allowance for credit losses
$
(24,070)
$
(23,067)
$
(22,230)
$
(21,454)
$
(21,084)
Total assets
$
2,581,216
$
2,503,954
$
2,458,270
$
2,489,142
$
2,339,093
Non-interest-bearing demand deposits
$
575,159
$
637,313
$
579,243
$
576,626
$
552,762
Interest-bearing deposits
$
1,598,845
$
1,489,304
$
1,477,459
$
1,526,168
$
1,384,377
Total deposits
$
2,174,004
$
2,126,617
$
2,056,702
$
2,102,794
$
1,937,139
FHLB advances and other borrowings
$
163,000
$
118,000
$
162,000
$
162,000
$
183,000
Total liabilities
$
2,365,828
$
2,290,038
$
2,257,250
$
2,294,131
$
2,147,125
Total stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Capital ratios:
(2)
Leverage ratio
9.53%
9.34%
9.03%
8.91%
9.28%
Common equity tier 1 capital
12.28%
12.01%
11.93%
11.80%
11.62%
Tier 1 risk-based capital
12.28%
12.01%
11.93%
11.80%
11.62%
Total risk-based capital
13.51%
13.22%
13.12%
12.98%
12.78%
(1)Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which areprovided for informational purposes only; as a small bank holdingcompany, the Company is not subject
to regulatory capital requirements. The Bank's total risk-basedcapital for fourth quarter 2024 was 13.34%.
7
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS,AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Average balance sheet data:
Cash and cash equivalents
$
56,937
$
87,937
$
107,831
$
132,266
$
57,069
Securities available-for-sale
$
255,786
$
244,882
$
263,345
$
239,896
$
215,649
Securities held-to-maturity
$
165,831
$
168,632
$
171,682
$
174,142
$
181,151
Total securities
$
421,617
$
413,514
$
435,027
$
414,038
$
396,800
Loans held for investment
(1)
$
1,958,566
$
1,878,230
$
1,828,487
$
1,781,528
$
1,698,611
Total assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
Interest-bearing deposits
$
1,547,789
$
1,468,067
$
1,473,513
$
1,473,831
$
1,336,470
Non-interest-bearing demand deposits
$
590,829
$
609,456
$
610,370
$
574,760
$
577,133
Total deposits
$
2,138,618
$
2,077,523
$
2,083,883
$
2,048,591
$
1,913,603
FHLB advances and other borrowings
$
151,804
$
156,043
$
162,000
$
164,187
$
139,000
Total liabilities
$
2,328,877
$
2,278,793
$
2,281,467
$
2,243,011
$
2,085,182
Total stockholders' equity
$
215,715
$
206,641
$
197,755
$
193,092
$
183,629
Performance ratios:
Return on average assets
(2)
1.08%
1.11%
1.01%
0.76%
0.48%
Return on average equity
(2)
12.73%
13.38%
12.63%
9.61%
5.88%
Net interest margin
(2)
3.16%
3.03%
2.94%
2.62%
2.65%
Non-interest income to average assets
(2)
0.57%
0.55%
0.52%
0.41%
0.23%
Non-interest expense to average assets
(2)
2.01%
1.83%
1.88%
1.84%
1.87%
Efficiency ratio
(3)
55.92%
53.16%
56.33%
63.41%
68.27%
Loans by type (at period end):
(4)
Residential real estate
$
297,979
$
283,477
$
256,807
$
237,906
$
204,419
Commercial real estate
$
1,128,399
$
1,095,112
$
1,053,030
$
1,057,800
$
1,047,593
Commercial and industrial
$
258,311
$
246,539
$
248,525
$
228,045
$
219,757
Correspondent banks
$
82,438
$
103,815
$
112,510
$
100,182
$
114,945
Consumer and other
$
198,091
$
198,604
$
194,644
$
194,325
$
191,930
Asset quality data:
Allowance for credit losses to total loans
1.22%
1.19%
1.19%
1.18%
1.18%
Allowance for credit losses to non-performing loans
889%
846%
2,933%
4,705%
4,505%
Total non-performing loans
(5)
$
2,707
$
2,725
$
758
$
456
$
468
Non-performing loans to total loans
0.14%
0.14%
0.04%
0.03%
0.03%
Non-performing assets to total assets
(5)
0.10%
0.11%
0.03%
0.02%
0.02%
Net charge-offs (recoveries of) to average loans
(2)
0.00%
(0.00)%
(0.00)%
(0.00)%
(0.00)%
Net charge-offs (recovery) of credit losses
$
(11)
$
(6)
$
(2)
$
(7)
$
(3)
Interest rates and yields:
(2)
Loans held for investment
6.25%
6.32%
6.16%
6.01%
5.79%
Investment securities
2.63%
2.61%
2.80%
2.69%
2.46%
Total interest-earning assets
5.57%
5.61%
5.54%
5.34%
5.16%
Deposits
(6)
2.48%
2.66%
2.64%
2.76%
2.53%
FHLB advances and other borrowings
3.81%
4.05%
4.03%
4.10%
4.04%
Total interest-bearing liabilities
3.47%
3.79%
3.76%
3.86%
3.66%
Other information:
Full-time equivalent employees
199
198
197
199
196
(1)Loan amounts include deferred fees/costs.
(2)Annualized.
(3)Efficiency ratio is defined as total non-interest expense dividedby sum of net interest income and total non-interestincome.
(4)Loan amounts exclude deferred fees/costs.
(5)The amounts for total non-performing loans and total non-performingassets are the same at the dates presented since there wasno other real estate owned (OREO)
recorded.
(6) Reflects effect of non-interest-bearing deposits.
8
USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended December 31,
2024
2023
Average
Balance
Interest
Yield/Rate
(1)
Average
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans held for investment
(2)
$
1,958,566
$
30,757
6.25%
$
1,698,611
$
24,803
5.79%
Investment securities
(3)
430,465
2,846
2.63%
404,850
2,511
2.46%
Other interest-earning assets
49,561
564
4.53%
49,583
662
5.30%
Total interest-earning assets
2,438,592
34,167
5.57%
2,153,044
27,976
5.16%
Non-interest-earning assets
106,000
115,767
Total assets
$
2,544,592
$
2,268,811
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing checking deposits
$
51,033
338
2.63%
$
49,675
327
2.61%
Saving and money market deposits
1,155,776
9,569
3.29%
1,004,805
9,126
3.60%
Time deposits
340,980
3,447
4.02%
281,990
2,733
3.85%
Total interest-bearing deposits
1,547,789
13,354
3.43%
1,336,470
12,186
3.62%
FHLB advances and other borrowings
151,804
1,455
3.81%
139,000
1,414
4.04%
Total interest-bearing liabilities
1,699,593
14,809
3.47%
1,475,470
13,600
3.66%
Non-interest-bearing demand deposits
590,829
577,133
Other non-interest-bearing liabilities
38,455
32,579
Total liabilities
2,328,877
2,085,182
Stockholders' equity
215,715
183,629
Total liabilities and stockholders' equity
$
2,544,592
$
2,268,811
Net interest income
$
19,358
$
14,376
Net interest spread
(4)
2.10%
1.50%
Net interest margin
(5)
3.16%
2.65%
(1)Annualized.
(2)Average loan balances include non-accrual loans. Interest income on loans includes accretionof deferred loan fees, net of deferred loan costs.
(3)At fair value except for securities held to maturity. This amount includes FHLBstock.
(4)Net interest spread is the average yield earned on totalinterest-earning assets minus the average rate paid on total interest-bearingliabilities.
(5)Net interest margin is the ratio of net interest income to totalinterest-earning assets.
9
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
6,904
$
6,949
$
6,209
$
4,612
$
2,721
Plus: Provision for income taxes
2,197
2,213
1,967
1,426
787
Plus: Provision for credit losses
1,030
931
786
410
1,475
PTPP income
$
10,131
$
10,093
$
8,962
$
6,448
$
4,983
PTPP return on average assets:
(1)
PTPP income
$
10,131
$
10,093
$
8,962
$
6,448
$
4,983
Average assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
PTPP return on average assets
(2)
1.58%
1.62%
1.45%
1.06%
0.87%
Operating net income:
(1)
Net income
$
6,904
$
6,949
$
6,209
$
4,612
$
2,721
Less: Net gains (losses) on sale of securities
-
-
14
-
(883)
Less: Tax effect on sale of securities
-
-
(4)
-
224
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Operating PTPP income:
(1)
PTPP income
$
10,131
$
10,093
$
8,962
$
6,448
$
4,983
Less: Net gains (losses) on sale of securities
-
-
14
-
(883)
Operating PTPP income
$
10,131
$
10,093
$
8,948
$
6,448
$
5,866
Operating PTPP return on average assets:
(1)
Operating PTPP income
$
10,131
$
10,093
$
8,948
$
6,448
$
5,866
Average assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
Operating PTPP return on average assets
(2)
1.58%
1.62%
1.45%
1.06%
1.03%
Operating return on average assets:
(1)
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Average assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
Operating return on average assets
(2)
1.08%
1.11%
1.01%
0.76%
0.59%
Operating return on average equity:
(1)
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Average equity
$
215,715
$
206,641
$
197,755
$
193,092
$
183,629
Operating return on average equity
(2)
12.73%
13.38%
12.61%
9.61%
7.30%
Operating Revenue:
(1)
Net interest income
$
19,358
$
18,109
$
17,311
$
15,158
$
14,376
Non-interest income
3,627
3,438
3,211
2,464
1,326
Less: Net gains (losses) on sale of securities
-
-
14
-
(883)
Operating revenue
$
22,985
$
21,547
$
20,508
$
17,622
$
16,585
Operating Efficiency Ratio:
(1)
Total non-interest expense
$
12,854
$
11,454
$
11,560
$
11,174
$
10,719
Operating revenue
$
22,985
$
21,547
$
20,508
$
17,622
$
16,585
Operating efficiency ratio
55.92%
53.16%
56.37%
63.41%
64.63%
(1) The Company believes these non-GAAP measurements arekey indicators of the ongoing earnings power of theCompany.
(2)Annualized.
10
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Less: Intangible assets
-
-
-
-
-
Tangible stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,924,632
19,620,632
19,630,632
19,650,463
19,575,435
Tangible book value per common share
(2)
$
10.81
$
10.90
$
10.24
$
9.92
$
9.81
Operating diluted net income per common share:
(1)
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Total weighted average diluted shares of common stock
20,183,731
19,825,211
19,717,167
19,698,258
19,573,350
Operating diluted net income per common share:
$
0.34
$
0.35
$
0.31
$
0.23
$
0.17
Tangible Common Equity/Tangible Assets
(1)
Tangible stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Tangible total assets
(3)
$
2,581,216
$
2,503,954
$
2,458,270
$
2,489,142
$
2,339,093
Tangible Common Equity/Tangible Assets
8.34%
8.54%
8.18%
7.83%
8.21%
(1)The Company believes these non-GAAP measurementsare key indicators of the ongoing earnings powerof the Company.
(2)Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstandingstock options.
(3) Since the Company has no intangible assets, tangibletotal assets is the same amount as total assets calculatedunder GAA
P.