EX-99.1 5 exhibit991.htm EX-99.1 exhibit991
 
 
exhibit991p1i0
1
Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS of
 
$0.35 for Q3 2024; ROAA of 1.11% and
ROAE of 13.38%
MIAMI, FL – October 31, 2024 – USCB Financial Holdings, Inc. (the
 
“Company”) (NASDAQ: USCB)
, the holding company for
U.S.
 
Century
 
Bank
 
(the
 
“Bank”),
 
reported
 
net
 
income
 
of
 
$6.9
 
million
 
or
 
$0.35
 
per
 
fully
 
diluted
 
share
 
for
 
the
 
three
 
months
 
ended
September 30, 2024, compared with net income of $3.8 million or $0.19
 
per fully diluted share for the same period in 2023.
 
“We
 
are proud
 
to report
 
our second
 
consecutive quarter
 
of record
 
fully diluted
 
earnings per
 
share, demonstrating
 
the strength
 
of our
strategic initiatives and
 
operational performance.”
 
said Luis de la
 
Aguilera, Chairman, President,
 
and CEO. “With
 
a return on average
assets of
 
1.11%
 
and a
 
NIM of 3.03%,
 
we are
 
effectively leveraging
 
our assets
 
to drive
 
profitability.
 
Additionally,
 
our growth
 
in non-
interest
 
income
 
reflects
 
our
 
commitment
 
to
 
diversifying
 
revenue
 
streams
 
and
 
enhancing
 
shareholder
 
value.
 
We
 
remain
 
focused
 
on
delivering strong performance and sustainable growth to our stakeholders
 
.” said de la Aguilera.
 
Unless otherwise stated, all percentage
 
comparisons in the bullet points
 
below are calculated at
 
or for the quarter
 
ended September 30,
2024 compared to at or for the quarter ended September 30, 2023
 
and annualized where appropriate.
Profitability
•
Annualized return on average assets for the quarter
 
ended September 30, 2024 was 1.11%
 
compared to 0.67% for the third quarter
of 2023.
 
•
Annualized return on
 
average stockholders’ equity
 
for the quarter
 
ended September 30,
 
2024 was 13.38%
 
compared to 8.19%
 
for
the third quarter of 2023.
 
•
The efficiency ratio for the quarter ended September 30,
 
2024 was 53.16% compared to 64.64% for the third quarter of 2023.
 
•
Net interest margin for the quarter ended September 30, 2024
 
was 3.03%
 
compared to 2.60% for the third quarter of 2023.
•
Net interest income
 
before provision for
 
credit losses was
 
$18.1 million for
 
the quarter ended
 
September 30, 2024, an
 
increase of
$4.1 million or 29.1% compared to the third quarter of 2023.
Balance Sheet
•
Total
 
assets
 
were
 
$2.5
 
billion
 
at
 
September 30,
 
2024,
 
representing
 
an
 
increase
 
of
 
$259.4 million
 
or
 
11.6%
 
from
 
$2.2
 
billion
 
at
September 30, 2023.
•
Total
 
loans
 
were
 
$1.9
 
billion
 
at
 
September 30,
 
2024,
 
representing
 
an
 
increase
 
of
 
$254.8 million
 
or
 
15.2%
 
from
 
$1.7
 
billion
 
at
September 30, 2023.
•
Total
 
deposits were
 
$2.1 billion at
 
September 30, 2024,
 
representing an
 
increase of
 
$205.7 million or
 
10.7% from
 
$1.9 billion
 
at
September 30, 2023.
•
Total
 
stockholders’
 
equity
 
was
 
$213.9 million
 
at
 
September 30,
 
2024,
 
representing
 
an
 
increase
 
of
 
$31.0
 
million
 
or
 
17.0% from
$182.9
 
million
 
at September 30,
 
2023. Total
 
stockholders’ equity
 
included
 
accumulated comprehensive
 
loss of
 
$38.0 million
 
at
September 30, 2024 compared to accumulated comprehensive loss of $51.2
 
million at September 30, 2023.
 
Asset Quality
•
The allowance
 
for credit
 
losses (“ACL”)
 
increased by
 
$3.6 million
 
to $23.1
 
million at
 
September 30, 2024
 
from $19.5
 
million at
September 30, 2023.
•
The ACL represented 1.19% of total loans at September 30, 2024
 
and 1.16% at September 30, 2023.
2
•
Provision for credit
 
loss was $931 thousand
 
for the quarter
 
ended September 30, 2024,
 
an increase of
 
$278 thousand compared
 
to
the third quarter of 2023.
•
Non-performing
 
loans to
 
total loans
 
was 0.14%
 
at September 30,
 
2024 and
 
0.03% at
 
September 30, 2023.
 
Nonperforming loans
totaled $2.7 million at September 30, 2024 and $479 thousand at September
 
30, 2023.
Non-interest Income and Non-interest Expense
•
Non-interest
 
income was
 
$3.4
 
million
 
for
 
the
 
three
 
months
 
ended September 30,
 
2024,
 
an
 
increase
 
of
 
$1.3
 
million
 
or
 
59.1%
compared to $2.2 million for the same period in 2023.
 
•
Non-interest
 
expense
 
was
 
$11.5
 
million
 
for
 
the
 
three
 
months
 
ended
 
September 30,
 
2024,
 
an
 
increase
 
of
 
$1.0
 
million
 
or
 
9.5%
compared to $10.5 million for the same period in 2023.
 
Capital
•
On October
 
28, 2024,
 
the Company’s
 
Board of
 
Directors declared
 
a cash
 
dividend of
 
$0.05 per
 
share of
 
the Company’s
 
Class A
common stock. The dividend will be paid on December 5, 2024 to shareholders of record at the close of business on November 15,
2024.
•
As of September 30, 2024,
total risk-based capital ratios for the Company and the Bank were 13.22% and 13.14%,
 
respectively.
•
Tangible
 
book value
 
per common
 
share (a
 
non-GAAP measure)
 
was $10.90
 
at September 30,
 
2024, representing
 
an increase
 
of
$0.66
 
or 25.6%
 
annualized
 
from
 
$10.24
 
at June
 
30,
 
2024.
 
At September
 
30,
 
2024,
 
tangible book
 
value
 
per
 
common
 
share was
negatively affected by $1.94 due to an accumulated comprehensive loss
 
of $38.0 million. At June 30, 2024, tangible
 
book value per
common share was negatively affected by $2.28 due
 
to an accumulated comprehensive loss of $44.7 million.
 
•
During
 
the quarter,
 
the Company
 
repurchased
 
10,000
 
shares of
 
Class A
 
common
 
stock at
 
a weighted
 
average
 
cost per
 
share of
$12.03. The
 
aggregate purchase price
 
for these transactions
 
was approximately
 
$120 thousand,
 
including transaction
 
costs. As of
September 30, 2024, 537,980 shares remained authorized for repurchase
 
under the Company’s share repurchase programs.
 
Conference Call and Webcast
 
The Company will host a conference call
 
on Friday, November 1, 2024, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited
financial results
 
for the quarter
 
ended September 30, 2024.
 
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 in 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,”, the negative
 
of these terms,
 
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 our results of
 
operations and financial condition
from expected or potential developments or events, or business and
 
growth strategies, including anticipated internal growth and balance
sheet restructuring.
3
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 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, and 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
 
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 security 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 filed or will file with the SEC.
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
 
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 September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Interest income:
Loans, including fees
$
29,819
$
22,523
$
84,479
$
63,081
Investment securities
2,754
2,833
8,634
7,501
Interest-bearing deposits in financial institutions
989
1,026
3,953
2,459
Total interest income
33,562
26,382
97,066
73,041
Interest expense:
Interest-bearing checking deposits
411
331
1,171
574
Savings and money market accounts
10,064
8,779
30,529
20,532
Time deposits
3,391
2,565
9,907
5,767
FHLB advances and other borrowings
1,587
685
4,881
1,976
Total interest expense
15,453
12,360
46,488
28,849
Net interest income before provision for credit losses
18,109
14,022
50,578
44,192
Provision for credit losses
931
653
2,127
892
Net interest income after provision for credit losses
17,178
13,369
48,451
43,300
Non-interest income:
 
 
 
 
Service fees
2,544
1,329
6,172
3,707
Gain (loss) on sale of securities available for sale, net
-
(955)
14
(976)
Gain on sale of loans held for sale, net
109
255
593
696
Other non-interest income
785
1,532
2,334
2,650
Total non-interest income
3,438
2,161
9,113
6,077
Non-interest expense:
 
 
 
 
Salaries and employee benefits
7,200
6,066
20,863
18,325
Occupancy
1,341
1,350
3,921
3,968
Regulatory assessments and fees
452
365
1,361
1,041
Consulting and legal fees
161
513
1,016
1,257
Network and information technology services
513
481
1,499
1,464
Other operating expense
1,787
1,686
5,528
5,034
Total non-interest expense
11,454
10,461
34,188
31,089
Net income before income tax expense
9,162
5,069
23,376
18,288
Income tax expense
2,213
1,250
5,606
4,464
Net income
$
6,949
$
3,819
$
17,770
$
13,824
Per share information:
 
Net income per common share, basic
$
0.35
$
0.20
$
0.90
$
0.70
Net income per common share, diluted
$
0.35
$
0.19
$
0.90
$
0.70
Cash dividends declared
$
0.05
$
-
$
0.15
$
-
Weighted average shares outstanding:
Common shares, basic
19,621,447
19,542,723
19,653,103
19,661,685
Common shares, diluted
19,825,211
19,611,897
19,761,242
19,729,181
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Income statement data:
Net interest income
$
18,109
$
17,311
$
15,158
$
14,376
$
14,022
Provision for credit losses
931
786
410
1,475
653
Net interest income after provision for credit losses
17,178
16,525
14,748
12,901
13,369
Service fees
2,544
1,977
1,651
1,348
1,329
Gain (loss) on sale of securities available for sale, net
-
14
-
(883)
(955)
Gain on sale of loans held for sale, net
109
417
67
105
255
Other income
785
803
746
756
1,532
Total non-interest income
3,438
3,211
2,464
1,326
2,161
Salaries and employee benefits
7,200
7,353
6,310
6,104
6,066
Occupancy
1,341
1,266
1,314
1,262
1,350
Regulatory assessments and fees
452
476
433
412
365
Consulting and legal fees
161
263
592
642
513
Network and information technology services
513
479
507
552
481
Other operating expense
1,787
1,723
2,018
1,747
1,686
Total non-interest expense
11,454
11,560
11,174
10,719
10,461
Net income before income tax expense
9,162
8,176
6,038
3,508
5,069
Income tax expense
2,213
1,967
1,426
787
1,250
Net income
$
6,949
$
6,209
$
4,612
$
2,721
$
3,819
Per share information:
Net income per common share, basic
$
0.35
$
0.32
$
0.23
$
0.14
$
0.20
Net income per common share, diluted
$
0.35
$
0.31
$
0.23
$
0.14
$
0.19
Cash dividends declared
$
0.05
$
0.05
$
0.05
$
-
$
-
Balance sheet data (at period-end):
 
 
 
Cash and cash equivalents
$
38,486
$
77,261
$
126,546
$
41,062
$
33,435
Securities available-for-sale
$
259,527
$
236,444
$
259,992
$
229,329
$
218,609
Securities held-to-maturity
$
167,001
$
169,606
$
173,038
$
174,974
$
197,311
Total securities
$
426,528
$
406,050
$
433,030
$
404,303
$
415,920
Loans held for investment
(1)
$
1,931,362
$
1,869,249
$
1,821,196
$
1,780,827
$
1,676,520
Allowance for credit losses
$
(23,067)
$
(22,230)
$
(21,454)
$
(21,084)
$
(19,493)
Total assets
$
2,503,954
$
2,458,270
$
2,489,142
$
2,339,093
$
2,244,602
Non-interest-bearing demand deposits
$
637,313
$
579,243
$
576,626
$
552,762
$
573,546
Interest-bearing deposits
$
1,489,304
$
1,477,459
$
1,526,168
$
1,384,377
$
1,347,376
Total deposits
$
2,126,617
$
2,056,702
$
2,102,794
$
1,937,139
$
1,920,922
FHLB advances and other borrowings
$
118,000
$
162,000
$
162,000
$
183,000
$
102,000
Total liabilities
$
2,290,038
$
2,257,250
$
2,294,131
$
2,147,125
$
2,061,718
Total stockholders' equity
$
213,916
$
201,020
$
195,011
$
191,968
$
182,884
Capital ratios:
(2)
 
 
 
Leverage ratio
9.34%
9.03%
8.91%
9.28%
9.26%
Common equity tier 1 capital
12.01%
11.93%
11.80%
11.62%
11.97%
Tier 1 risk-based capital
12.01%
11.93%
11.80%
11.62%
11.97%
Total risk-based capital
 
13.22%
13.12%
12.98%
12.78%
13.10%
(1)
 
Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are
 
provided for informational purposes only; as a small bank holding
 
company, the Company is not subject
to regulatory capital requirements. The Bank's total risk-based
 
capital for third quarter 2024 was 13.14%.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS,
 
AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Average balance sheet data:
Cash and cash equivalents
$
87,937
$
107,831
$
132,266
$
57,069
$
90,742
Securities available-for-sale
$
244,881
$
263,345
$
239,896
$
215,649
$
222,134
Securities held-to-maturity
$
168,632
$
171,682
$
174,142
$
181,151
$
218,694
Total securities
$
413,514
$
435,027
$
414,038
$
396,800
$
440,828
Loans held for investment
(1)
$
1,878,230
$
1,828,487
$
1,781,528
$
1,698,611
$
1,610,864
Total assets
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
Interest-bearing deposits
$
1,468,067
$
1,473,513
$
1,473,831
$
1,336,470
$
1,353,516
Non-interest-bearing demand deposits
$
609,456
$
610,370
$
574,760
$
577,133
$
587,917
Total deposits
$
2,077,523
$
2,083,883
$
2,048,591
$
1,913,603
$
1,941,433
FHLB advances and other borrowings
$
156,043
$
162,000
$
164,187
$
139,000
$
85,326
Total liabilities
$
2,278,793
$
2,281,467
$
2,243,011
$
2,085,182
$
2,065,357
Total stockholders' equity
$
206,641
$
197,755
$
193,092
$
183,629
$
184,901
Performance ratios:
Return on average assets
(2)
1.11%
1.01%
0.76%
0.48%
0.67%
Return on average equity
(2)
13.38%
12.63%
9.61%
5.88%
8.19%
Net interest margin
(2)
3.03%
2.94%
2.62%
2.65%
2.60%
Non-interest income to average assets
(2)
0.55%
0.52%
0.41%
0.23%
0.38%
Non-interest expense to average assets
(2)
1.83%
1.88%
1.84%
1.87%
1.84%
Efficiency ratio
(3)
53.16%
56.33%
63.41%
68.27%
64.64%
Loans by type (at period end):
(4)
 
 
 
 
 
Residential real estate
$
283,477
$
256,807
$
237,906
$
204,419
$
188,880
Commercial real estate
$
1,095,112
$
1,053,030
$
1,057,800
$
1,047,593
$
1,005,280
Commercial and industrial
$
246,539
$
248,525
$
228,045
$
219,757
$
212,975
Correspondent banks
$
103,815
$
112,510
$
100,182
$
114,945
$
94,640
Consumer and other
 
$
198,604
$
194,644
$
194,325
$
191,930
$
173,096
Asset quality data:
 
 
 
 
 
Allowance for credit losses to total loans
1.19%
1.19%
1.18%
1.18%
1.16%
Allowance for credit losses to non-performing loans
846%
2,933%
4,705%
4,505%
4,070%
Total non-performing loans
(5)
$
2,725
$
758
$
456
$
468
 
$
479
Non-performing loans to total loans
0.14%
0.04%
0.03%
0.03%
0.03%
Non-performing assets to total assets
(5)
0.11%
0.03%
0.02%
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
$
(6)
$
(2)
$
(7)
$
(3)
$
(5)
Interest rates and yields:
(2)
 
 
 
 
 
Loans
6.32%
6.16%
6.01%
5.79%
5.55%
Investment securities
 
2.61%
2.80%
2.69%
2.46%
2.52%
Total interest-earning assets
5.61%
5.54%
5.34%
5.16%
4.89%
Deposits
(6)
2.66%
2.64%
2.76%
2.53%
2.39%
FHLB advances and other borrowings
4.05%
4.03%
4.10%
4.04%
3.19%
Total interest-bearing liabilities
3.79%
3.76%
3.86%
3.66%
3.41%
Other information:
Full-time equivalent employees
198
197
199
196
194
(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 for total non-performing loans and total non-performing
 
assets are the same at the dates presented since there was
 
no other real estate owned (OREO)
recorded.
(6) Reflects effect of non-interest-bearing deposits.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
USCB FINANCIAL HOLDINGS, INC.
 
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended September 30,
2024
2023
Average
 
Balance
Interest
Yield/Rate
(1)
Average
 
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans
(2)
$
1,878,230
$
29,819
6.32%
$
1,610,864
$
22,523
5.55%
Investment securities
(3)
419,315
2,754
2.61%
445,828
2,833
2.52%
Other interest-earning assets
80,378
989
4.89%
83,479
1,026
4.88%
Total interest-earning assets
2,377,923
33,562
5.61%
2,140,171
26,382
4.89%
Non-interest-earning assets
107,511
 
 
110,087
 
 
Total assets
$
2,485,434
$
2,250,258
Liabilities and stockholders' equity
 
 
 
 
 
 
Interest-bearing liabilities:
Interest-bearing checking deposits
$
57,925
411
2.82%
$
52,080
331
2.52%
Saving and money market deposits
1,084,562
10,064
3.69%
1,011,164
8,779
3.44%
Time deposits
325,580
3,391
4.14%
290,272
2,565
3.51%
Total interest-bearing deposits
1,468,067
13,866
3.76%
1,353,516
11,675
3.42%
FHLB advances and other borrowings
156,043
1,587
4.05%
85,326
685
3.19%
Total interest-bearing liabilities
1,624,110
15,453
3.79%
1,438,842
12,360
3.41%
Non-interest-bearing demand deposits
609,456
 
 
587,917
 
 
Other non-interest-bearing liabilities
45,227
38,598
Total liabilities
2,278,793
 
 
2,065,357
 
 
Stockholders' equity
206,641
184,901
Total liabilities and stockholders' equity
$
2,485,434
 
 
$
2,250,258
 
 
Net interest income
$
18,109
$
14,022
Net interest spread
(4)
1.82%
1.48%
Net interest margin
(5)
3.03%
2.60%
(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
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
6,949
$
6,209
$
4,612
$
2,721
$
3,819
Plus: Provision for income taxes
2,213
1,967
1,426
787
1,250
Plus: Provision for credit losses
931
786
410
1,475
653
PTPP income
$
10,093
$
8,962
$
6,448
$
4,983
$
5,722
PTPP return on average assets:
(1)
 
 
 
 
 
PTPP income
$
10,093
$
8,962
$
6,448
$
4,983
$
5,722
Average assets
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
PTPP return on average assets
(2)
1.62%
1.45%
1.06%
0.87%
1.01%
 
 
 
 
 
Operating net income:
(1)
Net income
$
6,949
$
6,209
$
4,612
$
2,721
$
3,819
Less: Net gains (losses) on sale of securities
-
14
-
(883)
(955)
Less: Tax effect on sale of securities
-
(4)
-
224
242
Operating net income
$
6,949
$
6,199
$
4,612
$
3,380
$
4,532
 
 
 
 
 
Operating PTPP income:
(1)
PTPP income
$
10,093
$
8,962
$
6,448
$
4,983
$
5,722
Less: Net gains (losses) on sale of securities
-
14
-
(883)
(955)
Operating PTPP income
$
10,093
$
8,948
$
6,448
$
5,866
$
6,677
Operating PTPP return on average assets:
(1)
 
 
 
 
 
Operating PTPP income
$
10,093
$
8,948
$
6,448
$
5,866
$
6,677
Average assets
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
Operating PTPP return on average assets
(2)
1.62%
1.45%
1.06%
1.03%
1.18%
 
 
 
 
 
Operating return on average assets:
(1)
Operating net income
$
6,949
$
6,199
$
4,612
$
3,380
$
4,532
Average assets
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
Operating return on average assets
(2)
1.11%
1.01%
0.76%
0.59%
0.80%
Operating return on average equity:
(1)
Operating net income
$
6,949
$
6,199
$
4,612
$
3,380
$
4,532
Average equity
$
206,641
$
197,755
$
193,092
$
183,629
$
184,901
Operating return on average equity
(2)
13.38%
12.61%
9.61%
7.30%
9.72%
Operating Revenue:
(1)
 
Net interest income
$
18,109
 
$
17,311
 
$
15,158
 
$
14,376
 
$
14,022
 
Non-interest income
 
3,438
3,211
2,464
 
1,326
 
2,161
 
Less: Net gains (losses) on sale of securities
-
14
-
(883)
(955)
 
Operating revenue
$
21,547
$
20,508
$
17,622
$
16,585
$
17,138
Operating Efficiency Ratio:
(1)
 
Total non-interest expense
$
11,454
 
$
11,560
 
$
11,174
 
$
10,719
 
$
10,461
 
Operating revenue
$
21,547
$
20,508
$
17,622
$
16,585
$
17,138
 
Operating efficiency ratio
53.16%
56.37%
63.41%
64.63%
61.04%
(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
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
213,916
$
201,020
$
195,011
$
191,968
$
182,884
Less: Intangible assets
-
-
-
-
-
Tangible stockholders' equity
$
213,916
$
201,020
$
195,011
$
191,968
$
182,884
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,620,632
19,630,632
19,650,463
19,575,435
19,542,290
Tangible book value per common share
(2)
$
10.90
$
10.24
$
9.92
$
9.81
$
9.36
Operating diluted net income per common share:
(1)
Operating net income
$
6,949
$
6,199
$
4,612
$
3,380
$
4,532
Total weighted average diluted shares of common stock
19,825,211
19,717,167
19,698,258
19,573,350
19,611,897
Operating diluted net income per common share:
$
0.35
$
0.31
 
$
 
0.23
 
$
 
0.17
 
$
 
0.23
Tangible Common Equity/Tangible Assets
(1)
 
Tangible stockholders' equity
$
213,916
$
201,020
$
195,011
$
191,968
$
182,884
 
Tangible total assets
(3)
$
2,503,954
 
$
 
2,458,270
 
$
 
2,489,142
 
$
 
2,339,093
 
$
 
2,244,602
Tangible Common Equity/Tangible Assets
8.54%
8.18%
7.83%
8.21%
8.15%
(1)
 
The Company believes these non-GAAP measurements
 
are key indicators of the ongoing earnings power
 
of the Company.
(2)
 
Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding
 
stock options.
(3) Since the Company has no intangible assets, tangible
 
total assets is the same amount as total assets calculated
 
under GAA
P.