EX-99.1 5 exhibit991.htm EX-99.1 exhibit991
 
exhibit991p1i0
1
Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Diluted EPS of $0.14 for Q4 2023
 
MIAMI,
 
FL – January 25, 2024 – USCB Financial Holdings,
 
Inc. (the “Company”) (NASDAQ: USCB)
, the holding company for U.S. Century Bank (the
 
“Bank”),
reported net income of
 
$2.7 million or $0.14
 
per diluted share for
 
the three months ended
 
December 31, 2023, compared
 
to net income of
 
$4.4 million or $0.22
 
per diluted
share, for the same period in 2022.
 
“I am pleased
 
to announce the results
 
of a robust
 
quarter at US Century
 
Bank, achieving loan production of
 
$186 million with $150
 
million in loan
 
fundings having a
weighted average coupon of 8% on new loans.” said Luis de
 
la Aguilera, Chairman, President and CEO
“Despite facing one of the most aggressive
 
Federal Reserve tightening periods in history,
 
we've observed a steady improvement in our operating environment. Our Net
Interest Margin (NIM) improved 5 bps in comparison to the previous
 
quarter. Additionally, our accumulated comprehensive loss also showed improvement in the fourth
quarter decreasing by $7.0
 
million to $44.3 million,
 
which has increased our
 
stockholders equity and tangible
 
book value. As part
 
of our commitment to
 
address NIM
compression, we executed a $10 million loss trade
 
transaction selling lower-yielding securities and reinvesting
 
the funds in higher-yielding investments. Acknowledging
the industry-wide impact of an inverted yield curve on earnings, our
 
focus in 2024 is geared towards continued higher-yield loan
 
production, deposit pricing discipline,
and leveraging our proven business lines as lead deposit aggregators.”
 
said de la Aguilera.
Unless otherwise stated,
 
all percentage comparisons in
 
the bullet points
 
below are calculated
 
at or for
 
the quarter ended
 
December 31, 2023 compared to
 
at or for
 
the
quarter ended December 31, 2022 and annualized where appropriate.
Profitability
•
Annualized return on average assets for the quarter ended
 
December 31, 2023 was 0.48% compared to 0.86%
 
for the fourth quarter of 2022. Operating pre-tax pre-
provision profit (PTPP) return on
 
average assets (non-GAAP financial measure) for the
 
quarter ended December 31, 2023 was 1.03%
 
compared to 1.69% for the
fourth quarter of 2022.
•
Annualized return on average stockholders’ equity for
 
the quarter ended December 31, 2023 was 5.88% compared
 
to 9.91% for the fourth quarter of 2022.
 
•
The efficiency
 
ratio for
 
the quarter
 
ended December 31, 2023
 
was 68.27% compared
 
to 59.81%
 
for the
 
fourth quarter of
 
2022. Operating
 
efficiency ratio
 
(non-
GAAP financial measure) for the quarter ended December 31,
 
2023 was 64.63% compared to 53.46% for the fourth quarter
 
of 2022.
•
Net interest margin for the quarter ended December 31, 2023 was 2.65%
 
compared to 3.45% for the fourth quarter of 2022.
•
Net interest income before provision for
 
credit losses was $14.4 million for the quarter
 
ended December 31, 2023, a decrease of
 
$2.5 million or 14.8% compared to
the fourth quarter of 2022.
Balance Sheet
•
Total assets were $2.3 billion at December 31, 2023, representing an increase of $253.3 million
 
or 12.1% from December 31, 2022.
•
Total loans were $1.8 billion at December 31, 2023, representing an increase of $273.5 million
 
or 18.1% from December 31, 2022.
•
Total deposits were $1.9 billion at December 31, 2023, representing an increase of $107.9 million
 
or 5.9% from December 31, 2022.
•
Total stockholders’ equity was $192.0
 
million at December 31,
 
2023, representing an increase
 
of $9.5 million or
 
5.2%
 
from December 31, 2022.
 
Total stockholders’
equity
 
includes
 
accumulated
 
comprehensive
 
loss
 
of
 
$44.3
 
million
 
at
 
December 31,
 
2023
 
compared
 
to
 
accumulated
 
comprehensive
 
loss
 
of
 
$44.8
 
million
 
at
December 31, 2022.
 
Asset Quality
•
Allowance for credit
 
losses (“ACL”) was
 
calculated under the
 
Current Expected Credit
 
Losses (“CECL”) standard
 
methodology for all
 
periods in 2023
 
and the
incurred loss methodology for all periods in 2022.
•
The ACL increased by $3.6 million to $21.1 million at December
 
31, 2023 from $17.5 million at December 31, 2022.
•
The ACL represented 1.18% of total loans at December 31, 2023
 
and 1.16% at December 31, 2022.
•
Non-performing loans to total loans was 0.03% at December
 
31, 2023 compared to 0.00% at December 31, 2022.
Non-interest Income and Non-interest Expense
•
Non-interest income was $1.3 million for the three months
 
ended December 31, 2023, an increase of $1.4 million compared to
 
negative $0.1 million for the same
period in 2022.
 
•
Non-interest expense was $10.7 million for the
 
three months ended December 31, 2023, an
 
increase of $705 thousand or
 
7.0% compared to $10.0
 
million for the
same period in 2022.
 
2
Capital
•
During the fourth quarter the Company repurchased
 
92,317 shares of the Company’s common stock at a weighted
 
average price per share of $10.45. The aggregate
purchase price for
 
the repurchase was
 
approximately $968 thousand,
 
including transaction
 
costs. The
 
repurchase was
 
made through open
 
market transaction
 
pursuant
to the Company’s publicly announced stock repurchase program. As of December 31, 2023,
 
80,080 shares remained authorized for repurchase under
 
the program.
•
During 2023 the Company repurchased 669,920 shares of the Company’s
 
common stock at a weighted average price per share of
 
$11.28.
 
The aggregate purchase
price for
 
repurchases was approximately $7.6
 
million,
 
including transaction costs.
 
The
 
repurchases were made
 
through open market
 
transactions pursuant to
 
the
Company’s publicly announced stock repurchase program.
 
•
As of December 31, 2023,
total risk-based capital ratios for the Company and
 
the Bank were 12.78% and 12.65%, respectively.
•
Tangible book
 
value per common
 
share (non-GAAP financial
 
measure) at December
 
31, 2023 was
 
$9.81, representing an
 
increase of $0.69
 
from December 31,
2022.
 
Tangible book value per common share at December 31, 2023
 
was negatively affected by $2.26 due to
 
an accumulated comprehensive loss of $44.3
 
million.
At December 31, 2022, tangible
 
book value per common share of
 
$9.12 was negatively affected by $2.24 due to
 
$44.8 million in accumulated comprehensive
 
loss.
 
Conference Call and Webcast
 
The Company will host
 
a conference call on
 
Friday, January 26,
 
2024, at 11:00
 
a.m. Eastern Time to discuss
 
the Company’s unaudited
 
financial results for the quarter
ended December 31, 2023. To access the conference call, dial (833) 816-1416 (U.S.
 
toll-free)
 
and ask to join the USCB Financial Holdings Call.
 
Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com
 
.
 
An archived
version of the webcast will be available at the same location shortly
 
after the live call has ended.
About USCB Financial Holdings, Inc.
USCB Financial
 
Holdings, Inc. is
 
the bank
 
holding company for
 
U.S. Century
 
Bank. Established in
 
2002, U.S. Century
 
Bank is
 
one of
 
the largest
 
community banks
headquartered in
 
Miami, and
 
one of
 
the largest
 
community banks
 
in the
 
State of
 
Florida. U.S.
 
Century Bank
 
is rated
 
5-Stars by
 
BauerFinancial, the
 
nation’s leading
independent bank
 
rating firm. U.S.
 
Century Bank offers
 
customers a
 
wide range
 
of financial products
 
and services and
 
supports numerous community
 
organizations,
including the Greater Miami Chamber of Commerce,
 
the South Florida Hispanic Chamber of Commerce,
 
and ChamberSouth. For more information about
 
us or to find a
banking center near you, please call (305) 715-5200 or visit www.uscentury.com.
Forward-Looking Statements
This earnings
 
release may contain statements
 
that are not historical in
 
nature and are intended to
 
be, and are hereby identified
 
as, forward-looking statements for
 
purposes
of the safe harbor provided by Section 21E
 
of the Securities Exchange Act of 1934, as amended.
 
Forward-looking statements are those that are not historical facts. The
words “may,” “will,” “anticipate,” ”could”, “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,”
 
“estimate,” “continue,” and “intend,” as well as other
similar words
 
and expressions
 
of
 
the future,
 
are intended
 
to identify
 
forward-looking statements.
 
These forward-looking
 
statements include,
 
but
 
are not
 
limited to,
 
statements related to our
 
projected growth, anticipated
 
future financial performance, and
 
management’s long-term performance goals, as
 
well as statements relating
 
to the
anticipated effects on results
 
of operations and financial
 
condition from expected
 
developments or events, or
 
business and growth strategies,
 
including anticipated internal
growth and balance sheet restructuring.
These
 
forward-looking statements
 
involve significant
 
risks
 
and
 
uncertainties that
 
could
 
cause
 
our
 
actual
 
results 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 local economies in which we conduct operations;
•
our ability to successfully manage interest rate risk, credit risk,
 
liquidity risk, and other risks inherent to our industry;
•
the accuracy of
 
our financial statement
 
estimates and assumptions,
 
including the estimates
 
used for our
 
credit loss reserve
 
and deferred tax
 
asset valuation allowance;
•
the efficiency and effectiveness of our internal control procedures and processes;
•
our ability to comply with the extensive laws and regulations
 
to which we are subject, including the laws for
 
each jurisdiction where we operate;
•
adverse changes or conditions in the capital and financial markets,
 
including actual or potential stresses in the banking industry;
•
deposit attrition and the level of our uninsured deposits;
•
legislative or regulatory changes and changes in accounting
 
principles, policies, practices or guidelines, including
 
the on-going effects of the implementation of the
Current Expected Credit Losses (“CECL”) standard;
•
the lack of
 
a significantly diversified loan
 
portfolio and the
 
concentration in the
 
South Florida market,
 
including the risks
 
of geographic, depositor,
 
and industry
concentrations, including our concentration in loans secured
 
by real estate, in particular, 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 to fund or access the
 
capital markets at attractive rates and terms and
 
manage our growth, both organic growth as
 
well as growth through other means,
such as future acquisitions;
•
inflation, interest rate, unemployment rate, market and monetary
 
fluctuations;
•
impacts of international hostilities and geopolitical events;
•
increased competition and its effect on the pricing of our products
 
and services as well as our net interest rate spread and net
 
interest margin;
•
the loss of key employees;
•
the effectiveness of
 
our risk management
 
strategies, including
 
operational risks,
 
including, but
 
not limited
 
to, client, employee,
 
or third-party
 
fraud and
 
cybersecurity-
breaches; and
•
other risks described in this earnings release and other filings we
 
make with the Securities and Exchange Commission (“SEC”).
All
 
forward-looking
 
statements
 
are
 
necessarily
 
only
 
estimates
 
of
 
future
 
results,
 
and
 
there
 
can
 
be
 
no
 
assurance
 
that
 
actual
 
results
 
will
 
not
 
differ
 
materially
 
from
expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this earnings
release are made only as of the date hereof, and
 
we undertake no obligation to update or revise
 
any forward-looking statement to reflect events
 
or circumstances after the
date on which
 
the statements are made
 
or to reflect
 
the occurrence of unanticipated
 
events, unless required to
 
do so under
 
the federal securities
 
laws. You
 
should also
review the risk factors described in the reports the Company
 
has filed or will file with the SEC.
3
Non-GAAP Financial Measures
This earnings
 
release includes
 
financial information
 
determined by
 
methods other
 
than in
 
accordance with
 
generally accepted
 
accounting principles
 
(“GAAP”). This
financial information includes
 
certain operating performance
 
measures. Management
 
has included these
 
non-GAAP financial measures
 
because it believes
 
these measures
may provide useful supplemental information for evaluating the Company’s operations and underlying
 
performance trends. Further, management uses these measures in
managing and evaluating the
 
Company’s business and
 
intends to refer
 
to them in
 
discussions about our operations
 
and performance. Operating performance
 
measures
should be viewed in addition to,
 
and not as an alternative to
 
or substitute for, measures determined in accordance
 
with GAAP, and are not necessarily comparable to non-
GAAP measures that may
 
be presented by other companies.
 
Reconciliations of these non-GAAP
 
measures to the most
 
directly comparable GAAP measures
 
can be found
in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earnings release.
All numbers included in this press release are unaudited
 
unless otherwise noted.
Contacts:
Investor Relations
InvestorRelations@uscentury.com
Media Relations
Martha Guerra-Kattou
 
MGuerra@uscentury.com
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS
 
OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
Three Months Ended December 31,
Twelve Months Ended December 31,
2023
2022
2023
2022
Interest income:
Loans, including fees
$
24,803
$
17,836
$
87,884
$
60,825
Investment securities
2,511
2,306
10,012
9,346
Interest-bearing deposits in financial institutions
662
455
3,121
929
Total interest income
27,976
20,597
101,017
71,100
Interest expense:
Interest-bearing checking
327
34
901
86
Savings and money market accounts
9,126
2,866
29,658
5,173
Time deposits
2,733
616
8,500
1,509
FHLB advances and other borrowings
1,414
215
3,390
671
Total interest expense
13,600
3,731
42,449
7,439
Net interest income before provision for credit losses
14,376
16,866
58,568
63,661
Provision for credit losses
1,475
880
2,367
2,495
Net interest income after provision for credit losses
12,901
15,986
56,201
61,166
Non-interest income:
 
 
 
 
Service fees
1,348
1,093
5,055
4,010
Gain (loss) on sale of securities available for sale, net
(883)
(1,989)
(1,859)
(2,529)
Gain on sale of loans held for sale, net
105
205
801
891
Loan settlement
-
-
-
161
Other non-interest income
756
568
3,406
2,695
Total non-interest income
1,326
(123)
7,403
5,228
Non-interest expense:
Salaries and employee benefits
6,104
6,080
24,429
23,943
Occupancy
1,262
1,256
5,230
5,058
Regulatory assessments and fees
412
222
1,453
930
Consulting and legal fees
642
371
1,899
1,890
Network and information technology services
552
483
2,016
1,806
Other operating expense
1,747
1,602
6,781
5,682
Total non-interest expense
10,719
10,014
41,808
39,309
Net income before income tax expense
3,508
5,849
21,796
27,085
Income tax expense
787
1,415
5,251
6,944
Net income
$
2,721
$
4,434
$
16,545
$
20,141
Per share information:
Net income per common share, basic
$
0.14
$
0.22
$
0.84
$
1.01
Net income per common share, diluted
$
0.14
$
0.22
$
0.84
$
1.00
Weighted average shares outstanding:
Common shares, basic
19,503,043
20,000,753
19,621,698
19,999,323
Common shares, diluted
19,573,350
20,172,438
19,687,634
20,176,838
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
Income statement data:
Net interest income
$
14,376
$
14,022
$
14,173
$
15,997
$
16,866
Provision for credit losses
1,475
653
38
201
880
Net interest income after provision for credit losses
12,901
13,369
14,135
15,796
15,986
Service fees
1,348
1,329
1,173
1,205
1,093
Gain (loss) on sale of securities available for sale, net
(883)
(955)
-
(21)
(1,989)
Gain on sale of loans held for sale, net
105
255
94
347
205
Other income
756
1,532
579
539
568
Total non-interest income
1,326
2,161
1,846
2,070
(123)
Salaries and employee benefits
6,104
6,066
5,882
6,377
6,080
Occupancy
1,262
1,350
1,319
1,299
1,256
Regulatory assessments and fees
412
365
452
224
222
Consulting and legal fees
642
513
386
358
371
Network and information technology services
552
481
505
478
483
Other operating expense
1,747
1,686
1,908
1,440
1,602
Total non-interest expense
10,719
10,461
10,452
10,176
10,014
Net income before income tax expense
3,508
5,069
5,529
7,690
5,849
Income tax expense
787
1,250
1,333
1,881
1,415
Net income
$
2,721
$
3,819
$
4,196
$
5,809
$
4,434
Per share information:
Net income per common share, basic
$
0.14
$
0.20
$
0.21
$
0.29
$
0.22
Net income per common share, diluted
$
0.14
$
0.19
$
0.21
$
0.29
$
0.22
Balance sheet data (at period-end):
 
 
 
Cash and cash equivalents
$
41,062
$
33,435
$
87,280
$
63,251
$
54,168
Securities available-for-sale
$
229,329
$
218,609
$
218,442
$
229,409
$
230,140
Securities held-to-maturity
$
174,974
$
197,311
$
220,956
$
186,428
$
188,699
Total securities
$
404,303
$
415,920
$
439,398
$
415,837
$
418,839
Loans held for investment
(1)
$
1,780,827
$
1,676,520
$
1,595,959
$
1,580,394
$
1,507,338
Allowance for credit losses
$
(21,084)
$
(19,493)
$
(18,815)
$
(18,887)
$
(17,487)
Total assets
$
2,339,093
$
2,244,602
$
2,225,914
$
2,163,821
$
2,085,834
Non-interest-bearing deposits
$
552,762
$
573,546
$
572,360
$
633,606
$
629,776
Interest-bearing deposits
$
1,384,377
$
1,347,376
$
1,348,941
$
1,196,856
$
1,199,505
Total deposits
$
1,937,139
$
1,920,922
$
1,921,301
$
1,830,462
$
1,829,281
FHLB advances and other borrowings
$
183,000
$
102,000
$
87,000
$
120,000
$
46,000
Total liabilities
$
2,147,125
$
2,061,718
$
2,042,229
$
1,979,963
$
1,903,406
Total stockholders' equity
$
191,968
$
182,884
$
183,685
$
183,858
$
182,428
Capital ratios:
(2)
 
 
 
Leverage ratio
9.28%
9.26%
9.32%
9.36%
9.61%
Common equity tier 1 capital
11.62%
11.97%
12.27%
12.04%
12.53%
Tier 1 risk-based capital
11.62%
11.97%
12.27%
12.04%
12.53%
Total risk-based capital
 
12.78%
13.10%
13.42%
13.20%
13.65%
(1)
 
Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are
 
provided for information purposes only; as a small bank holding
 
company, the Company is not subject to
regulatory capital requirements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS,
 
AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
Average balance sheet data:
Cash and cash equivalents
$
57,069
$
90,742
$
94,313
$
50,822
$
61,892
Securities available-for-sale
$
215,649
$
222,134
$
224,913
$
230,336
$
242,144
Securities held-to-maturity
$
181,151
$
218,694
$
192,628
$
187,826
$
184,459
Total securities
$
396,800
$
440,828
$
417,541
$
418,162
$
426,603
Loans held for investment
(1)
$
1,698,611
$
1,610,864
$
1,569,266
$
1,547,393
$
1,456,780
Total assets
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
$
2,051,867
Interest-bearing deposits
$
1,336,470
$
1,353,516
$
1,270,657
$
1,179,878
$
1,150,049
Non-interest-bearing deposits
$
577,133
$
587,917
$
601,778
$
664,369
$
653,820
Total deposits
$
1,913,603
$
1,941,433
$
1,872,435
$
1,844,247
$
1,803,869
FHLB advances and other borrowings
$
139,000
$
85,326
$
93,075
$
61,600
$
37,500
Total liabilities
$
2,085,182
$
2,065,357
$
1,999,304
$
1,936,847
$
1,874,311
Total stockholders' equity
$
183,629
$
184,901
$
184,238
$
183,371
$
177,556
Performance ratios:
Return on average assets
(2)
0.48%
0.67%
0.77%
1.11%
0.86%
Return on average equity
(2)
5.88%
8.19%
9.13%
12.85%
9.91%
Net interest margin
(2)
2.65%
2.60%
2.73%
3.22%
3.45%
Non-interest income (loss) to average assets
(2)
0.23%
0.38%
0.34%
0.40%
(0.02)%
Efficiency ratio
(3)
68.27%
64.64%
65.25%
56.32%
59.81%
Loans by type (at period end):
(4)
Residential real estate
$
204,419
$
188,880
$
183,093
$
184,427
$
185,636
Commercial real estate
$
1,047,593
$
1,005,280
$
989,401
$
987,757
$
970,410
Commercial and industrial
$
219,757
$
212,975
$
169,401
$
160,947
$
126,984
Foreign banks
$
114,945
$
94,640
$
85,409
$
97,405
$
93,769
Consumer and other
 
$
191,930
$
173,096
$
167,845
$
149,410
$
130,429
Asset quality data:
 
 
Allowance for credit losses to total loans
1.18%
1.16%
1.18%
1.20%
1.16%
Allowance for credit losses to non-performing loans
4,505%
4,070%
3,871%
3,886%
- %
Total non-performing loans
(5)
$
468
$
479
$
486
$
486
 
$
-
Non-performing loans to total loans
0.03%
0.03%
0.03%
0.03%
- %
Non-performing assets to total assets
(5)
0.02%
0.02%
0.02%
0.02%
- %
Net charge-offs (recoveries of) to average loans
(2)
(0.00)%
(0.00)%
0.01%
(0.01)%
(0.00)%
Net charge-offs (recovery) of credit losses
$
(3)
$
(5)
$
29
$
(49)
$
(2)
Interest rates and yields:
(2)
Loans
5.79%
5.55%
5.33%
5.17%
4.86%
Investment securities
 
2.46%
2.52%
2.26%
2.20%
2.13%
Total interest-earning assets
5.16%
4.89%
4.68%
4.51%
4.21%
Deposits
2.53%
2.39%
1.99%
1.29%
0.77%
FHLB advances and other borrowings
4.04%
3.19%
3.42%
3.27%
2.27%
Total interest-bearing liabilities
3.66%
3.41%
2.97%
2.08%
1.25%
Other information:
 
 
 
 
 
Full-time equivalent employees
196
194
198
196
191
(1)
 
Loan amounts include deferred fees/costs.
(2)
 
Annualized.
(3)
 
Efficiency ratio is defined as total non-interest expense divided
 
by sum of net interest income and total non-interest
 
income.
(4)
 
Loan amounts exclude deferred fees/costs.
(5)
 
The amounts and percentages for total non-performing
 
loans and total non-performing assets are the same at the dates
 
presented since there were no impaired
investments or other real estate owned (OREO) recorded.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
USCB FINANCIAL HOLDINGS, INC.
 
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended December 31,
2023
2022
Average
 
Balance
Interest
Yield/Rate
(1)
Average
 
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans
(2)
$
1,698,611
$
24,803
5.79%
$
1,456,780
$
17,836
4.86%
Investment securities
(3)
404,850
2,511
2.46%
429,020
2,306
2.13%
Other interest-earnings assets
49,583
662
5.30%
53,717
455
3.36%
Total interest-earning assets
2,153,044
27,976
5.16%
1,939,517
20,597
4.21%
Non-interest-earning assets
115,767
 
 
112,350
 
 
Total assets
$
2,268,811
$
2,051,867
Liabilities and stockholders' equity
 
 
 
 
 
 
Interest-bearing liabilities:
Interest-bearing checking
$
49,675
327
2.61%
$
61,976
34
0.22%
Saving and money market deposits
1,004,805
9,126
3.60%
871,269
2,866
1.31%
Time deposits
281,990
2,733
3.85%
216,804
616
1.13%
Total interest-bearing deposits
1,336,470
12,186
3.62%
1,150,049
3,516
1.21%
FHLB advances and other borrowings
139,000
1,414
4.04%
37,500
215
2.27%
Total interest-bearing liabilities
1,475,470
13,600
3.66%
1,187,549
3,731
1.25%
Non-interest-bearing demand deposits
577,133
 
 
653,820
 
 
Other non-interest-bearing liabilities
32,579
32,942
Total liabilities
2,085,182
 
 
1,874,311
 
 
Stockholders' equity
183,629
177,556
Total liabilities and stockholders' equity
$
2,268,811
 
 
$
2,051,867
 
 
Net interest income
$
14,376
$
16,866
Net interest spread
(4)
1.50%
2.96%
Net interest margin
(5)
2.65%
3.45%
(1)
 
Annualized.
(2)
 
Average loan balances include non-accrual loans. Interest income on loans includes accretion
 
of deferred loan fees, net of deferred loan costs.
(3)
 
At fair value except for securities held to maturity. This amount includes FHLB
 
stock.
(4)
 
Net interest spread is the average yield earned on total
 
interest-earning assets minus the average rate paid on total interest-bearing
 
liabilities.
(5)
 
Net interest margin is the ratio of net interest income to total
 
interest-earning assets.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
2,721
$
3,819
$
4,196
$
5,809
$
4,434
Plus: Provision for income taxes
787
1,250
1,333
1,881
1,415
Plus: Provision for credit losses
1,475
653
38
201
880
PTPP income
$
4,983
$
5,722
$
5,567
$
7,891
$
6,729
PTPP return on average assets:
(1)
 
 
 
 
 
PTPP income
$
4,983
$
5,722
$
5,567
$
7,891
$
6,729
Average assets
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
$
2,051,867
PTPP return on average assets
(2)
0.87%
1.01%
1.02%
1.51%
1.30%
 
 
 
 
 
Operating net income:
(1)
Net income
$
2,721
$
3,819
$
4,196
$
5,809
$
4,434
Less: Net gains (losses) on sale of securities
(883)
(955)
-
(21)
(1,989)
Less: Tax effect on sale of securities
224
242
-
5
504
Operating net income
$
3,380
$
4,532
$
4,196
$
5,825
$
5,919
 
 
 
 
 
Operating PTPP income:
(1)
PTPP income
$
4,983
$
5,722
$
5,567
$
7,891
$
6,729
Less: Net gains (losses) on sale of securities
(883)
(955)
-
(21)
(1,989)
Operating PTPP income
$
5,866
$
6,677
$
5,567
$
7,912
$
8,718
Operating PTPP return on average assets:
(1)
 
 
 
 
 
Operating PTPP income
$
5,866
$
6,677
$
5,567
$
7,912
$
8,718
Average assets
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
$
2,051,867
Operating PTPP return on average assets
(2)
1.03%
1.18%
1.02%
1.51%
1.69%
 
 
 
 
 
Operating return on average assets:
(1)
Operating net income
$
3,380
$
4,532
$
4,196
$
5,825
$
5,919
Average assets
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
$
2,051,867
Operating return on average assets
(2)
0.59%
0.80%
0.77%
1.11%
1.14%
Operating return on average equity:
(1)
Operating net income
$
3,380
$
4,532
$
4,196
$
5,825
$
5,919
Average equity
$
183,629
$
184,901
$
184,238
$
183,371
$
177,556
Operating return on average equity
(2)
7.30%
9.72%
9.13%
12.88%
13.23%
Operating Revenue:
(1)
 
Net interest income
$
14,376
 
$
14,022
 
$
14,173
 
$
15,997
 
$
16,866
 
Non-interest income
 
1,326
2,161
1,846
 
2,070
 
(123)
 
Less: Net gains (losses) on sale of securities
(883)
(955)
-
(21)
(1,989)
 
Operating revenue
$
16,585
$
17,138
$
16,019
$
18,088
$
18,732
Operating Efficiency Ratio:
(1)
 
Total non-interest expense
$
10,719
 
$
10,461
 
$
10,452
 
$
10,176
 
$
10,014
 
Operating revenue
$
16,585
$
17,138
$
16,019
$
18,088
$
18,732
 
Operating efficiency ratio
64.63%
61.04%
65.25%
56.26%
53.46%
(1) The Company believes these non-GAAP measurements are
 
key indicators of the ongoing earnings power of the
 
Company.
(2)
 
Annualized.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
191,968
$
182,884
$
183,685
$
183,858
$
182,428
Less: Intangible assets
(2)
-
-
-
-
-
Tangible stockholders' equity
(2)
$
191,968
$
182,884
$
183,685
$
183,858
$
182,428
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,575,435
19,542,290
19,544,777
19,622,380
20,000,753
Tangible book value per common share
(2) (3)
$
9.81
$
9.36
$
9.40
$
9.37
$
9.12
Operating diluted net income per common share:
(1)
Operating net income
$
3,380
$
4,532
$
4,196
$
5,825
$
5,919
Total weighted average diluted shares of common stock
19,573,350
19,611,897
19,639,682
19,940,606
20,172,438
Operating diluted net income per common share:
$
0.17
$
0.23
 
$
 
0.21
 
$
 
0.29
 
$
 
0.29
Tangible Common Equity/Tangible Assets
(1)
 
Tangible stockholders' equity
$
191,968
$
182,884
$
183,685
$
183,858
$
182,428
 
Tangible total assets
(2)
$
2,339,093
 
$
 
2,244,602
 
$
 
2,225,914
 
$
 
2,163,821
 
$
 
2,085,834
Tangible Common Equity/Tangible Assets
(2)
8.21%
8.15%
8.25%
8.50%
8.75%
(1)
 
The Company believes these non-GAAP measurements
 
are key indicators of the ongoing earnings power
 
of the Company.
(2) Since the Company has no intangible assets, tangible
 
stockholders' equity, tangible book value per share and tangible total assets are the same
 
amounts as
stockholders' equity, book value per share and
 
total assets calculated under GAAP.
(3)
 
Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock
 
options.