EX-99.1 5 exhibit991.htm EX-99.1 exhibit991
 
 
 
 
 
 
 
exhibit991p1i0
1
Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Fully Diluted EPS of $0.34 for Q4
 
2024 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.
 
Century
 
Bank
 
(the
 
“Bank”),
 
reported
 
net
 
income
 
of
 
$6.9
 
million
 
or
 
$0.34
 
per
 
fully
 
diluted
 
share
 
for
 
the
 
three
 
months
 
ended
December 31, 2024, compared with net income of $2.7 million or $0.14
 
per 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 year
 
ago, we posted $0.14
 
per share in diluted
 
EPS in Q4 2023
 
and more than doubled
 
those earnings this quarter
to $0.34 per
 
share. Our continued
 
focus on reducing
 
deposit costs has contributed
 
to the net interest
 
margin (NIM) expansion,
 
helping
us maintain solid profitability. While we did experience
 
an increase in non-interest expense, primarily due to non-routine items, overall
profitability was consistent with the
 
third quarter. Given the earnings power of
 
the Company, outlook for 2025, and strong
 
capital 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 to
 
drive sustainable
 
performance and
 
delivering value
 
to our
 
shareholders.” said
 
Luis de
 
la Aguilera,
 
Chairman, President,
and CEO.
Unless otherwise stated,
 
all percentage comparisons
 
in the bullet points
 
below are calculated
 
at or for the
 
quarter ended December 31,
2024 compared to at or for the quarter ended December 31, 2023
 
and 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 return
 
on average stockholders’
 
equity for the
 
quarter ended December
 
31, 2024 was
 
12.73% compared
 
to 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, 2024
 
was 3.16%
 
compared to 2.65% for the fourth quarter of 2023.
•
Net interest income
 
before provision
 
for credit
 
losses was $19.4
 
million for
 
the quarter ended
 
December 31, 2024,
 
an increase of
$5.0 million or 34.7% compared to the fourth quarter of 2023.
Balance Sheet
•
Total
 
assets
 
were
 
$2.6
 
billion
 
at
 
December 31,
 
2024,
 
representing
 
an
 
increase
 
of
 
$242.1 million
 
or
 
10.4%
 
from
 
$2.3
 
billion
 
at
December 31, 2023.
•
Total loans held
 
for 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.
•
Total
 
deposits were
 
$2.2 billion at
 
December 31, 2024,
 
representing an
 
increase of
 
$236.9 million or
 
12.2% from
 
$1.9 billion
 
at
December 31, 2023.
•
Total
 
stockholders’
 
equity
 
was
 
$215.4 million
 
at
 
December 31,
 
2024,
 
representing
 
an
 
increase
 
of
 
$23.4
 
million
 
or
 
12.2%
 
from
$192.0
 
million
 
at December
 
31,
 
2023.
 
Total
 
stockholders’
 
equity
 
included
 
accumulated
 
comprehensive
 
loss of
 
$44.5 million
 
at
December 31, 2024 compared to accumulated comprehensive loss of $44.3
 
million at December 31, 2023.
 
2
Asset Quality
•
The allowance
 
for credit
 
losses (“ACL”)
 
increased by
 
$3.0 million
 
to $24.1
 
million at
 
December 31, 2024
 
from $21.1
 
million 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 $1.0
 
million for the quarter ended December
 
31, 2024, a decrease of $445 thousand
 
compared to
the fourth quarter of 2023.
•
Non-performing
 
loans to
 
total loans
 
was 0.14%
 
at December
 
31,
 
2024
 
and
 
0.03%
 
at December
 
31, 2023.
 
Nonperforming
 
loans
totaled $2.7 million at December 31, 2024 and $468 thousand at December
 
31, 2023.
Non-interest Income and Non-interest Expense
•
Non-interest
 
income was
 
$3.6
 
million
 
for
 
the
 
three
 
months
 
ended December 31,
 
2024,
 
an
 
increase
 
of
 
$2.3
 
million
 
or
 
173.5%
compared to $1.3 million for the same period in 2023.
 
•
Non-interest
 
expense
 
was
 
$12.9 million
 
for
 
the
 
three
 
months
 
ended
 
December 31,
 
2024,
 
an
 
increase
 
of
 
$2.1
 
million
 
or
 
19.9%
compared to $10.7 million for the same period in 2023.
 
•
Non-interest expense
 
for the three months
 
ended December 31,
 
2024, increased $1.4
 
million compared to
 
the three months ended
September 30, 2024 due to routine increases of $362 thousand
 
and non-routine increases of $1.0 million. Routine increases for the
fourth quarter 2024 were: $110
 
thousand increase to salaries and
 
employee benefits due to merit increases
 
and higher replacement
cost
 
of
 
personnel,
 
$218
 
thousand
 
increase
 
in
 
consulting
 
and
 
legal
 
fees
 
due
 
to
 
timing
 
of billings
 
throughout
 
the
 
year,
 
and
 
$104
thousand increase in other operating expense. Occupancy, regulatory assessment and fees,
 
and network and information technology
had a net decrease
 
of $70 thousand. Non-routine increases
 
for the fourth quarter 2024
 
were: $620 thousand in
 
salaries and employee
benefits due to restricted stock
 
award expense (a shorter initial
 
vesting period; annual expense was
 
recognized in two months), $173
thousand
 
in
 
legal
 
expenses
 
for
 
various
 
items
 
which
 
the
 
Company
 
expects
 
to be
 
reimbursed
 
in
 
coming
 
quarters,
 
$174
 
thousand
increase in other operating expenses due to forced placed-insurance expense related to
 
borrowers which the Company expects to be
reimbursed
 
in
 
coming
 
quarters, and
 
$71
 
thousand
 
due
 
to
 
excise tax
 
related
 
to
 
the
 
Company’s
 
stock
 
repurchases
 
pursuant
 
to
 
its
previously
 
announced stock
 
repurchase programs.
 
Non-routine expenses
 
had an
 
impact of
 
($0.04) on
 
diluted EPS
 
for the
 
fourth
quarter 2024.
 
Capital
•
On January 21,
 
2025, the Company’s
 
Board of Directors
 
declared a quarterly
 
cash dividend
 
of $0.10 per
 
share of the
 
Company’s
Class A common stock. The dividend will be paid on March 5, 2025 to
 
shareholders 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 book
 
value per common share (a non-GAAP
 
measure) was $10.81 at December 31,
 
2024, representing increase of $1.00
or 10.2% from $9.81 at December
 
31, 2023. At December 31, 2024, tangible
 
book value per common share was
 
negatively affected
by ($2.24) per share due to an
 
accumulated comprehensive loss of $44.5 million due to changes
 
in the market value of our
 
available
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 $44.3
 
million.
 
Conference Call and Webcast
 
The Company will host a conference call on Friday,
 
January 24, 2025, at 11:00 a.m. Eastern Time
 
to 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,
 
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
3
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,”
 
“seek,”“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.
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
4
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
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,
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 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 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 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 are
 
key indicators of the ongoing earnings power of the
 
Company.
(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 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.