EX-99.2 4 exhibit992.htm exhibit992
exhibit992p1i0
 
Exhibit 99.2 USBC FINANCIAL HOLDINGS
Third Quarter 2022
Earnings Presentation
October 28, 2022
exhibit992p2i0
 
Forward-Looking Statements This presentation 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. The words “may,” “will,”
 
“anticipate,” “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 identi
 
fy forward-looking statements. These forward-looking statements
 
include 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. 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; • the continuation of the COVID-19
 
pandemic and its impact on us, our employees, customers and
 
third-party service providers, and the ultimate extent of the impacts
 
of the pandemic and related government stimulus programs;
 
• our ability to successfully manage interest rate risk, credit risk,
 
liquidity risk, and other risks inherent to our industry; • the accu
 
racy 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 environment; • our ability to comply with the
extensive laws and regulations to which we are subject, including the
 
laws for each jurisdiction where we operate; • legislative or regulatory
 
changes and changes in accounting principles, policies, practices
 
or guidelines, including the effects of the forthcoming implementation
 
of the Current Expected Credit Losses (“CECL”) standard; •
 
the effects of our lack of a diversified loan portfolio and concentration
 
in the South Florida market, including the risks of geographic,
 
depositor, and industry concentrations, including our concentration
 
in loans secured by real estate; • the concentration of ownership of our
 
Class A common stock; • fluctuations in the price of our Class A 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; • increased competition and its effect
 
on the pricing of our products and services as well as our margin; •
 
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 presentation 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 presentation 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 statement is 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 USCB Financial Holdings, Inc. filed or will file with the
 
SEC and, for periods prior to the completion of the bank holding company
 
reorganization in December 31, 2021, U.S Century Bank filed
 
with the FDIC. Non-GAAP Financial Measures This presentation
 
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 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. To the extent
 
applicable, 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 presentation. You
 
should assume that all numbers are unaudited unless otherwise
 
noted. 2
exhibit992p3i0
 
Q3 2022 Highlights Capital/ Credit Credit metrics remain strong.
 
There were no loans classified as nonperforming. ACL coverage
 
ratio was 1.16%. Tangible Book Value per Share is at $8.87, down
 
$0.13 from prior quarter primarily due to AOCI. Classified
 
$74.4 million of securities from AFS to HTM to protect
 
tangible book value in a rising rate environment. No shares repurchased
 
during the quarter; Board approved repurchase program in place covering
 
750,000 shares of Class A common stock. Profitability Net income
 
was $5.6 million or $0.28 per diluted share. ROAA was 1.09%
 
and ROAE was 11.90%. Efficiency ratio was 54.58%. NIM
 
was 3.47% and NII was $16.8 million, compared to 3.37% and
 
$15.6 million in the second quarter 2022. Growth Average
 
deposits increased by $285.7 million or 19.3% compared to third quarter
 
2021. Total average loans, excluding PPP loans, increased $113.3
 
million or 35.2% annualized compared to prior quarter and $321.1
 
million or 30.0% compared to third quarter 2021. 3
exhibit992p4i0
 
Historical Financial Data Total Loans (1) In millions $735 $1,432
 
2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 2022 2022 2022
 
Total Deposits In millions $782 $1,797 2016 2017 2018 2019
 
2020 2021 Q1 Q2 Q3 2022 2022 2022 Total stockholders'
 
equity In millions $86 $177 2016 2017 2018 2019 2020
 
2021 Q1 Q2 Q3 2022 2022 2022 ACL/Total Loans 37% 63% 2016
 
2017 2018 2019 2020 2021 Q1 Q2 Q3 2022 2022 2022 Net Charge
 
offs In thousands (1019) 91 2016 2017 2018 2019 2020 2021 Q1 Q2
 
Q3 2022 2022 2022 Nonperforming Assets/Total Assets
 
1.58% 0% 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 2022
 
2022 2022 Total Revenue In millions $37 $63 2016 2017 2018
 
2019 2020 2021 Q1 Q2 Q3 2022 2022 2022 Efficiency ratio
 
94.15% 54.58% 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 2022
 
2022 2022 PTPP ROAA (2) 0.24% 1.65% 2016 2017 2018
 
2019 2020 2021 Q1 Q2 Q3 2022 2022 2022 (1) Loan amounts
 
include deferred fees/costs. (2) Non-GAAP Financial Measure.
 
Annualized for 2022 periods. * As of end of period for Balance Sheet amounts.
 
4
exhibit992p5i0
 
Hurricane Ian Update On September 28, 2022, Hurricane Ian
 
made landfall in Florida as a category 4 hurricane affecting some areas
 
of the state with significant flooding, wind damage and power
 
outages. The Credit Department identified all potential impact zones
 
and tracked the storms progress. 27 counties throughout the State of
 
Florida were documented to be in the Hurricane trajectory.
 
USCB has 94 loans totaling $173 million that were identified within
 
the storm’s path, inclusive of properties and moored yachts.
 
Management visited the 3 counties most impacted by the storm
 
(Lee, Charlotte, and Collier counties) and observed negligible
 
to no damage to our client’s properties. Yacht owners were
 
contacted; no damage reported. To date, no loan modifications have
 
been requested. We continue to assess any potential credit
 
risk and most importantly we are in direct contact with our customers.
 
5
exhibit992p6i0
 
Financial Results In thousands (except per share data) Balance
 
Sheet (EOP) Q3 2022 Q2 2022 Q3 2021 Income Statement Total
 
Securities Total Loans '?) Total Assets Total Deposits
 
Total Equity '2) Net Interest Income Non-interest Income Total
 
Revenue Provision for Credit Losses Non-interest Expense
 
Net Income Net Income (loss) available to common stockholders Diluted
 
Earning (loss) Per Share (EPS) (3) Class A Common Stock
 
Class B Common Stock $427,436 $1,431,513 $2,037,453 $1,796,642
 
$177,417 $16,774 $1,789 $18,563 $910 $10,132 $5,558 $5,558
 
$0.28 $0.00 $456,135 $1,372,733 $2,016,086 $1,738,720 $180,068
 
$15,642 $1,617 $17,259 $705 $9,551 $5,295 $5,295 $0.26 $0.00
 
$428,037 $1,176,412 $1,755,011 $1,484,589 $201,918 $13,471
 
$4,217 $17,688 $o $9,007 $6,593 -$83,534 $5.11 -$1.02 (1) Loan amounts
 
include deferred fees/costs. (2) Total Equity includes unrealized
 
security losses of $45,201 for Q3 2022, $36,860 for Q2 2022, and unrealized
 
security gains of $1,184 for Q3 2021. (3) See footnote disclosure
 
in the Non-GAAP reconciliation table for common stock activity (exchange
 
of Class B common stock) which impacted diluted EPS for Q3’21.
 
6
exhibit992p7i0
 
Key Performance Indicators Q3 2022 Q2 2022 Q3 2021 Capital/ Credit
 
Profitability Growth Tangible Common Equity/Tangible
 
Assets!) Total Risk-Based Capital NCO/Avg Loans ©! NPA/Assets
 
Allowance Credit Losses/Loans Return On Average
 
Assets (ROAA) ) Return On Average Equity (ROAE) Net
 
Interest Margin ! Efficiency Ratio PTPP ROAA (18) Total Assets
 
(EOP) Total Loans (EOP) Total Deposits (EOP) Tang
 
ible Book Value/Share ‘4! 8.71% 13.65% 0.03% 0.00%
 
1.16% 1.09% 11.90% 3.47% 54.58% 1.65% $2,037,453 $1,431,513
 
$1,796,642 $8.87 8.93% 11.51% 13.74% 15.10% 0.00%
 
0.02% 0.00% 0.00% 1.15% 1.27% 1.08% 1.50% 11.38% 13.41% 3.37%
 
3.19% 55.34% 50.92% 1.57% 1.98% In thousands (except for TBV/share)
 
$2,016,086 $4,755,011 $1,372,733 $1,176,412 $1,738,720 $1,484,589
 
$9.00 $10.10 (1) Non-GAAP Financial Measures. See footnote
 
disclosure in the Non-GAAP reconciliation table for common stock
 
activity (exchange of Class B common stock) which impacted
 
Q3’21. (2) The Company was established in Q4 2021. As such, the
 
capital ratios for Q3 2022 and Q2 2022 are for the Bank Holding
 
Company while Q3 2021 is for the Bank only. (3) Annualized.
 
(4) Unrealized security (loss) gain effect on tangible book value
 
per share was ($2.26) for Q3 2022, ($1.84) for Q2 2022 and $0.06 for
 
Q2 2022. 7
exhibit992p8i0
 
Loan Portfolio Total Loans (AVG) In millions $1,400 $1,300
 
$1,200 $1,100 $1,000 $900 $800 $1,144 $1,159 $1,211 $1,296
 
$1,399 $700 $73 $51 $35 $18 $7 $600 $1,071 $1,108 $1,176 $1,278
 
$1,392 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Loans
 
(Exd PPP) PPP Loans Loan Yields 5.00% 4.50% 4.00% 3.50% 3.00%
 
2.50% 2.00% 1.50% 1.00% 4.29% 4.32% 4.35% 4.35% 4.53% 0.50%
 
0.32% 0.33% 0.28% 1.30% 0.03% 0.00% 3.97% 3.99% 4.07% 4.22%
 
4.50% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Commentary
 
Total average loans, excluding PPP loans, increased
 
$113.3 million or 35.4% annualized compared to prior quarter and
 
$321.1 million or 30.0% compared to third quarter 2021. Loan
 
coupon increased 28 bps compared to prior quarter and 53 bps
 
compared to third quarter 2021. Increase due to a higher interest
 
rate environment. Loan fees decreased 10 bps from prior quarter
 
primarily due to amortization of premium on yacht loan purchased
 
in 2021 and subsequently paid off in 2022. Additionally, a decrease
 
of $312 thousand in PPP loan fees. 8
exhibit992p9i0
 
Loan Production Net Loan Production Trend In millions $180 $160
 
$140 $120 $100 $80 $60 $40 $20 $117 $88 $119 $106 $141
 
$74 $169 $56 $130 $71 $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022
 
Q3 2022 Loan Production/Line changes Loan Amortization/payoffs
 
Commentary 2022 payoffs slowing with increase in interest rates.
 
$130 million loan production in Q3 2022 was negatively impacted
 
by hurricane Ian. Approximately $15MM was delayed as insurance
 
companies delayed "binding" which is a requirement for loan closing. Average
 
coupon on new loans is 4.85% for third quarter 2022. 9
exhibit992p10i0
 
Paycheck Protection Program (PPP) 3 successful
 
rounds of PPP loans, originating $168.4 million. Forgiveness
 
of the last round of PPP loans is in process. In thousands (except
 
for ROAA) Q3 2022 Q2 2022 Q3 2021 Pre-Tax Income
 
$7,521 $7,003 $8,681 Net Income $5,558 $5,295 $6,593 Average
 
Assets $2,026,791 $1,968,381 $1,741,423 ROAA (1) 1.09% 1.08%
 
1.50% of which PPP Income (2) $145 $484 $1,071 Unrealized
 
PPP Fees EOP $19 $149 $2,360 PPP Balance EOP $1,362 $13,507
 
$57,991 PPP AVG. Balance $6,620 $17,643 $73,215
 
PPP Loans (1) Annualized. (2) PPP Income includes loan fees
 
and interest income. 10
exhibit992p11i0
 
Deposit Portfolio Deposits (AVG) In millions $2,000 $1,800 $1,600
 
$1,400 $1,200 $1,000 $800 $1,477 $1,562 $1,650 $1,717 $1,763
 
$600 $229 $228 $223 $224 $217 $400 $628 $674 $736 $781 $823
 
$200 $55 $56 $65 $67 $67 $- $565 $604 $626 $645 $656 Q3
 
2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Non-interest-bearing
 
deposits Interest-bearing checking deposits Money amrket and
 
savings Time deposits Deposit Cost (1) 0.70% 0.60% + 300 bps
 
0.50% Q3'22 vs Q4'21 0.40% 0.30% 0.20% 0.10% 0.22% 0.21%
 
0.20% 1.75% 3.25% 0.00% 0.25% 0.25% 5.00% 0.21% 0.34% Q3
 
2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Deposit Cost Fed Funds
 
Rate (upper bound) Commentary Average deposits increased
 
$46.3 million or 10.7% annualized compared to prior quarter and
 
$285.7 million or 19.3% compared to third quarter 2021. Average
 
DDA deposits grew $10.9 million or 6.7% annualized compared
 
to prior quarter and $90.9 million or 16.1% compared to third quarter
 
2021. DDA balances comprise 38.2% of total deposits at September
 
30, 2022. Deposit cost increased 13 bps compared to prior quarter
 
and increased 12 bps compared to third quarter 2021. Deposit cost
 
lagged the Fed Fund Rate increases with a 4.33% Deposit beta. (1)
 
Annualized. 11
exhibit992p12i0
 
Net Interest Margin Net Interest Income/Margin (1) In thousands (except
 
ratios) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000
 
$4,000 3.19% 3.19% 3.22% 337.00% 3.47% $2,000 3.08% 3.06%
 
3.05% 3.27% 3.45% $0 $13,471 $14,076 $14,379 $15,642 $16,774
 
Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net Interest Income
 
NIM NIM excludign PPP Loans Interest-Earning Assets Mix
 
(AVG) 100% 90% 80% 70% 60% 50% 40% 30% 6%
 
5% 5% 4% 4% 20% 24% 28% 28% 26% 23% 10% 5% 3%
 
2% 1% 0% 0% 65% 64% 65% 69% 73% Q3 2021 Q4 2021 Q1
 
2022 Q2 2022 Q3 2022 Total Loans (excludign PPP Loans)
 
PPP Loans Investment Securities Cash Balances & Equivalents Commentary
 
Net interest income increased by $1.1 million or 28.7% annualized
 
compared to prior quarter and $3.3 million or 24.5% compared
 
to third quarter 2021. NIM impacted by an increase in overall interest
 
rates and growth in loans. NIM of 3.47% up 10 bps from prior quarter
 
and up 28 bps from third quarter 2021. (1) Annualized. 12
exhibit992p13i0
 
Interest Rate Sensitivity Loan Portfolio Repricing Profile by Rate Type
 
Hybrid ARM 6% Variable Rate 55% Fixed Rate 39% 16%
 
16% 68% Prime CMT LIBOR Loan Repricing Schedule Variable/Hybrid
 
Rate Loans 31% 9% 10% 50% yrs. 1-2 yrs. 2-3 yrs. >3 yrs Static
 
NII Simulation Year 1 & 2 $4,000 $3,500 $3,000 $2,500 $2,000
 
$1,500 $1,000 $500 $0 -$500 -$51 -$319 2.6% 4.4% -$1,000 0.1%
 
0.4% $2,032 $3,411 +100 +200 +100 +200 Net Interest Income
 
change from base ($ in thousands and % change) As of 9/30/22 13
exhibit992p14i0
 
Non-interest Income Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021
 
Service fees $934 $1,083 $900 $961 $856 Gain (loss) on sale of securities
 
available for sale (558) (3) 21 35 (70) Gain on sale of loans
 
held for sale 330 22 334 107 532 Gain on sale of other assets - -
 
- 983 - Loan settlement - - 161 - 2,500 Other income 1,083
 
515 529 558 399 Total non-interest income $1,789 $1,617 $1,945
 
$2,644 $4,217 Average total assets $2,026,791 $1,968,381
 
$1,913,484 $1,828,037 $1,741,423 Non-interest income / Average
 
assets (1) 0.35% 0.33% 0.41% 0.57% 0.96% Total revenue $18,563
 
$17,259 $16,324 $16,720 $17,688 Non-interest income as % of
 
total revenue 9.64% 9.37% 11.91% 15.81% 23.85% Commentary
 
Service fees remain substantially consistent quarter over quarter.
 
Loss on sale of securities was offset with a $565K gain on prepayment
 
of FHLB borrowing in “Other Income”. SBA loan sales produced
 
$330K of gains. Fluctuation of non-interest income primarily impacted
 
by one-time items in prior quarters. (1) Annualized. 14
exhibit992p15i0
 
Non-interest Expense In thousands (except ratios and FTE) Q3 2022
 
Q2 2022 Q1 2022 Q4 2021 Q3 2021 Salaries and employee benefits
 
$6,075 $5,913 $5,875 $5,634 $5,313 Occupancy 1,281 1,251
 
1,270 1,267 1,192 Regulatory assessments and fees 269 226 213
 
93 317 Consulting and legal fees 604 398 517 539 357 Network and
 
information technology services 488 448 387 268 358 Other operating
 
expense 1,415 1,315 1,350 1,518 1,470 Total non-interest
 
expenses $10,132 $9,551 $9,612 $9,319 $9,007 Efficiency ratio
 
54.58% 55.34% 58.88% 55.74% 50.92% Average total asset
 
s
 
$2,026,791 $1,968,381 $1,913,484 $1,828,037 $1,741,423 Non-interest
 
expense / Average assets (1) 1.98% 1.95% 2.04% 2.02% 2.05%
 
Full-time equivalent employees 191 192 190 187 184 Commentary
 
Non-interest expense to average assets remains below 2021 levels.
 
Salaries and employee benefits increased primarily due to
 
7 new FTEs (3 lenders, 1 portfolio manager, and 3 support staff)
 
compared to third quarter 2021. Consulting fees increased due
 
to one-time expenses for CECL, CRE related studies and tests, and placement
 
fee for new hires. Higher revenue improved efficiency ratio
 
to 54.58%. (1) Annualized. 15
exhibit992p16i0
 
Asset Quality Allowance for Credit Losses In thousands (except ratios)
 
$17,000 $16,000 $15,000 $14,000 1.33% 1.31% 1.22% 1.16%
 
1.16% $13,000 1.27% 1.27% 1.20% 1.15% 1.16% $12,000 $14,900
 
$15,057 $15,074 $15,786 $16,604 Q3 2021 Q4 2021 Q1 2022
 
Q2 2022 Q3 2022 Allowance for credit losses ACL/Total
 
loans ACL/Total loans excluding PPP loans Commentary ACL
 
coverage ratio is at 1.16%. No loans classified as non-performing.
 
No OREO. CECL modeling progressing as planned. Non-performing
 
Loans In thousands (except ratios) 1,400 1,200 1,000 800 600
 
400 200 0.00% 0.10% 0.00% 0.00% 0.00% - $18 $1,190 $0
 
$0 $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Non-accrual
 
loans less non-accrual TDRs Loans-over 90 days past due and accruing
 
Non-performing loans to total loans 16
exhibit992p17i0
 
Capital Capital Ratios(1) Leverage Ratio TCE/TA (2) Tier
 
1 Risk Based Capital Total Risk Based Capital Q3 2022 9.48%
 
8.71% 12.56% 13.65% Q2 2022 9.43% 8.93% 12.65% 13.74%
 
Q3 2021 9.69% 11.51% 13.85% 15.10%
 
Well-
 
Capitalized 5.00% NA 8.00% 10.00% Commentary All capital ratios remain
 
significantly above “well capitalized” guidelines. Q3 2022 EOP
 
shares outstanding: Class A Common Stock: 20,000,753 No
 
shares repurchased during the quarter; Board approved repurchase
 
program in place covering 750,000 shares of Class A common stock. (1)
 
The Company was established in Q4 2021. As such, the capital ratios
 
for Q3 2022 and Q2 2022 are for the Company while Q3 2021
 
is for the Bank only. (2) Non-GAAP. 17
exhibit992p18i0
 
Takeaways Leading Franchise Located in one of the Most Attractive
 
Banking Markets in Florida and the U.S. Experienced and Tested
 
Management Team Robust Organic Growth Strong Asset
 
Quality, with Minimal Charge-offs Experienced Since Recapitalization
 
Strong Profitability, with Pathway For Future Enhancement
 
Identified Core Funded Deposit Base with 36.9% Non-Interest-Bearing
 
Deposits (EOP) 18
exhibit992p19i0
 
Non-GAAP Reconciliation In thousands (except ratios) Pre-TaxPre
 
Provision ("PTPP") Income: Netincome Plus: Provision forincome
 
taxes Plus: Provision for credit losses PIPP income PIPP Return
 
on Average Assets: PIPP income S 34st 78 $ 6712 $ 7401 $
 
S681 Average assets S 2679 $ 196381 $ 191344 $ 198087 $ 1741.03
 
PIPP retum on average assets'"” 165% 15% 1A% 161% 198% Operating
 
Net Income: ‘Net income Less: Net gains (losses) on sale of securities
 
Less: Tax effect on sak of securities Operating net income Operating
 
PTPP Income: PIPP income S84 S$ 7708 $§ «6712 $141 SRL Less:
 
Net gains (losses) on sale of securities G3) @ 4 35 oy Operating PIPPIncome
 
Operating PTPP Return on Average Assets: Operating
 
PTPPincome S77 S$ 6@1 $7366 S$ 7m Average assets S 196381
 
$ 191344 $ 10807 $ 1741.03 Operating PTPPRetum on average
 
assets! 15% LA% 160% 199% Operating Return on Average Assets:
 
Operating net income S595 $ 527 $ 488 S$ Ses S$ 66m Average
 
assets S$ 206791 S$ 196381 $ 1913484 $ 198087 $ 171.03 Operating
 
retum on average assets"? 11% 108% 105% 12% 151% (1)
 
Ammualized. 19
exhibit992p20i0
 
Non-GAAP Reconciliation In thousands (except per share data)
 
As of and for the three months ended 30022 ‘63072022 3312022 12302021
 
9302021 ‘Tangible Book Value per Common Share
 
(at peried-end):) Total stockholders’ equity s may $ 1006S 192039
 
S$ 2897S 201918, Less:Intangible assets = e - : Less: Prefered
 
stocie - - - - ‘Tangible stockholm’ equity s ima § iw00e Ss ima maT
 
Ss 201518 Total shares issued and onsstan ding (at period-end):
 
° Chass A common shares 0.000.753 20.000753, 0.000.753 18767541
 
Cass B common shares - 7 : 1224212 Totalcommon shares
 
issued and ovtstanding 7201000758 20000735 20,000,753 19.99.73
 
‘Tangible book valsepercommoa share") s ss 8 300 $ 20S
 
s 10.10 Operating Net Income Available to Common Stockholders: ©
 
Net income s 5558S 5295 458s 560 658 Less: Prefemed dividends
 
a : z as 32 Less: Exchange ané redemption of prefered
 
shares 2 a 89,585.00 ‘Net incom (loss) avaiable to commons tockholées 485
 
3) Add back Exchang eand edemption of prefered shares 2 5 5 59.585,
 
Operating net income avai. to common stock: s s s 48S 5 6051 Allocation
 
of operating net income per common stock clas Css A conmon
 
stock s s 5295 $ 455s 560 $ 5538 (Clas B common stock: s mans)
 
Ey ae Sat 45 Weighted average
 
shares outstanding Class A common stock Basie 20,000,753 20,000,753,
 
19.994.953, iss94 1512140 Dilotad 20,148,208 20,171.26 20,10
 
8,788 19,023,686 15121460 (Class B common stocks Basic . 2
 
: 2 6121052 Dilotad - : - : 612,052 Diluced EPS:""° Css A conmon
 
stock Netincome (loss) per diluted share s 02s § 026 $ om $s 0x0
 
en Add back Exchang eand edamption of prefered shares
 
a = : = 548 Opening netincome per diluted share s os 036. 1S om 1s 0300S
 
037 Class B common stocks Net income (oss) per diluted share
 
s oan Es) a aS a0) Add back Exchanzeand demotion of prefered
 
shares z 7 = = 109 Operating net incom per éilvted
share = ang Sas ae = 007 (1) The Company believes these non-GAAPmeasurements
 
are key indicators of the ongoing earnings power of the Company.
 
(2) During the quarter ended September 30, 2021, 47,473
 
shares of Class C preferred stock and 11,061,552 shares of
 
Class D preferred stock were converted into 10,278,072 shares of
 
Class A common stock. Additionally, the Bank closed on the initial
 
public offering of ts Class A common stock on July 27, 2021, in
 
which i issued 4,600,000 shares of Class A common stock As such,
 
the total shares issued and outstanding of Class A common stock
 
was 18,767,541 shares at September 30, 2021 (3) Excludes the
 
dilutive effect, if any, of shares of common stock issuable upon
 
exercise of outstanding stock options (4) During the quarter
 
ended September 30, 2021, basic net loss per share is the same as diluted
 
net loss per share as the inclusion of all potential common shares
 
outstanding w ould have been antidilutive. (6) During the quarter
 
ended December 31, 2021, the Corrpany entered into agreements
 
with the Gass B common shareholders to exchange all outstanding
 
Class B non-voting common stock for Class A voting common
 
stock at a ratio of 1 share of Class A common stock for each
 
5 shares of Class B non-voting common stock. In calculating net income
 
(loss) per diluted share for the prior quarters presented, the allocation
 
of operating net income available to common stockholders was
 
based on the weighted average shares outstanding per common
 
share class to the total weighted average shares outstanding
 
during each period. The operating net income allocation w as calculated
 
using the weighted average shares outstanding of Class B common
 
stock ‘onan as-converted basis. 20
exhibit992p21i0
 
Contact Information Lou de la Aguilera President, CEO & Director
 
(305) 715-5186 laguilera@uscentury.com Rob Anderson Chief
 
Financial Officer (305) 715-5393 rob.anderson@uscentury.com Investor
 
Relations InvestorRelations@uscentury.com 21