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 $0.23 for Q1 2024 and
 
announces adoption of new 500,000
share repurchase program
MIAMI,
 
FL – April 25,
 
2024 – USCB
 
Financial Holdings, Inc. (the
 
“Company”) (NASDAQ: USCB)
, the holding
 
company for U.S. Century
 
Bank (the “Bank”),
reported net income of $4.6 million or
 
$0.23 per diluted share for the three
 
months ended March 31, 2024, compared with
 
net income of $5.8 million or $0.29
 
per diluted
share for the same period in 2023.
 
“We are pleased to report
 
a robust start
 
to the year, marked
 
by a strong
 
increase in deposits
 
of $165.7 million
 
from the close
 
of 2023. This
 
achievement reflects our
 
diligent
execution of
 
strategic plans emphasizing
 
organic growth,
 
including business and
 
retail banking
 
initiatives to deepen
 
existing relationships, new
 
production hires, and
innovative deposit-aggregating business verticals,” said Luis de la Aguilera,
 
Chairman, President, and CEO. The growth in deposits continues to bolster our capacity for
safe and sound lending activities, delivering accretive quarter-over-quarter improvement
 
in average loan coupon rates which contributes to interest
 
income.”
“Last month,
 
we initiated
 
a dividend
 
program starting
 
with a
 
rate of
 
$0.05 per
 
share, underscoring
 
our commitment
 
to delivering
 
shareholder value,”
 
affirmed de
 
la
Aguilera. “Looking ahead to the coming year and evaluating
 
our thriving Florida economy, we anticipate diversified sustainable growth in both loans and
 
deposits.”
Unless otherwise
 
stated, all
 
percentage comparisons
 
in
 
the bullet
 
points below
 
are
 
calculated for
 
the quarter
 
ended March 31,
 
2024 compared
 
to the
 
quarter ended
March 31, 2023 and annualized where appropriate.
Profitability
Annualized return on average assets for the quarter ended March
 
31, 2024 was 0.76% compared to 1.11% for the first quarter of 2023.
 
Annualized return on average stockholders’ equity for
 
the quarter ended March 31, 2024 was 9.61% compared
 
to 12.85% for the first quarter of 2023.
 
The efficiency ratio for the quarter ended March 31, 2024 was 63.41%
 
compared to 56.32% for the first quarter of 2023.
 
Net interest margin for the quarter ended March 31, 2024 was 2.62%
 
compared to 3.22% for the first quarter of
 
2023.
Net interest income before provision for
 
credit losses was $15.2 million for the
 
quarter ended March 31, 2024, a
 
decrease of $839 thousand or 5.2% compared
 
to
the first quarter of 2023.
Balance Sheet
Total assets were $2.5 billion at March 31, 2024, representing an increase of $325.3 million or
 
15.0% from March 31, 2023.
Total loans were $1.8 billion at March 31, 2024, representing an increase of $240.8 million or
 
15.2% from March 31, 2023.
Total deposits were $2.1 billion at March 31, 2024, representing an increase of $272.3 million or 14.9%
 
from March 31, 2023.
Total stockholders’ equity was
 
$195.0 million at
 
March 31, 2024, representing
 
an increase of
 
$11.2 million or 6.1%
 
from March 31, 2023.
 
Total stockholders’ equity
included accumulated comprehensive loss of $45.4 million at March
 
31, 2024 compared to accumulated comprehensive loss of $42.1 million
 
at March 31, 2023.
 
Asset Quality
The allowance for credit losses (“ACL”) increased by $2.6 million
 
to $21.5 million at March 31, 2024 from $18.9 million
 
at March 31, 2023.
The allowance for credit losses represented 1.18% of total loans
 
at March 31, 2024 and 1.20% at March 31, 2023.
Non-performing loans to total loans was 0.03% at both March
 
31, 2024 and March 31, 2023.
Non-interest Income and Non-interest Expense
Non-interest income was $2.5 million for the
 
three months ended March 31, 2024, an increase of
 
$394 thousand or 19.0%
 
compared to $2.1 million for
 
the same
period in 2023.
 
Non-interest expense was $11.2 million for the three months ended March 31, 2024, an increase of $998
 
thousand or 9.8% compared to $10.2 million for the same
period in 2023.
 
Capital
On January 29, 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 was
paid on March 5, 2024 to shareholders of record at the close of business on
 
February 15, 2023. The aggregate amount distributed in connection with this dividend
was $1.0 million.
The Company’s Board of Directors declared a cash dividend of $0.05 per share of the Company’s
 
Class A common stock on April 22, 2024. The dividend will be
paid on June 5, 2024 to shareholders of record at the close
 
of business on May 15, 2024.
2
As of March 31, 2024,
total risk-based capital ratios for the Company and the
 
Bank were 12.98%
 
and 12.89%, respectively.
Tangible book value per common share (a non-GAAP measure)
 
of $9.92 was negatively affected by $2.31
 
due to accumulated comprehensive loss of
 
$45.4 million
at March 31, 2024.
 
At March 31, 2023,
 
tangible
 
book value per
 
common share of
 
$9.37 was
 
negatively affected by
 
$2.14 due
 
to $42.1
 
million in accumulated
comprehensive loss.
During the quarter the Company repurchased 7,100
 
shares of Class A common stock at a weighted average
 
price per share of $11.15. The aggregate purchase price
for these transactions was approximately $79.2 thousand, including transaction
 
costs. As of March 31, 2024, 72,980 shares remain authorized for repurchase
 
under
the Company’s previously announced share repurchase program.
 
On April 22, 2024, the Board of Directors approved a new share
 
repurchase program of up to 500,000 shares of Class A common stock or
 
approximately 2.5% of
the Company’s issued and outstanding shares of common stock. Under the repurchase program, the Company may purchase shares of Class A common stock on a
discretionary basis from time to
 
time through open market repurchases,
 
privately negotiated transactions, or
 
other means. The repurchase program
 
has no expiration
date and may be modified, suspended, or terminated at any
 
time. The new repurchase program will commence upon completion
 
of the current repurchase program.
Repurchases under this program will be funded from the
 
Company’s existing cash and cash equivalents or
 
future cash flow.
 
As of April 22, 2024, 572,980 shares
remain authorized for repurchase under the Company’s share repurchase programs.
Conference Call and Webcast
 
The Company will host
 
a conference call on
 
Friday, April 26, 2024, at 11:00 a.m.
 
Eastern Time to discuss the
 
Company’s unaudited financial results for
 
the quarter ended
March 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 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 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, 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.
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 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 March 31,
2024
2023
Interest income:
Loans, including fees
$
26,643
$
19,711
Investment securities
2,811
2,286
Interest-bearing deposits in financial institutions
1,433
382
Total interest income
30,887
22,379
Interest expense:
Interest-bearing checking
369
43
Savings and money market accounts
10,394
4,785
Time deposits
3,294
1,057
FHLB advances and other borrowings
1,672
497
Total interest expense
15,729
6,382
Net interest income before provision for credit losses
15,158
15,997
Provision for credit losses
410
201
Net interest income after provision for credit losses
14,748
15,796
Non-interest income:
 
 
Service fees
1,651
1,205
Gain (loss) on sale of securities available for sale, net
-
(21)
Gain on sale of loans held for sale, net
67
347
Other non-interest income
746
539
Total non-interest income
2,464
2,070
Non-interest expense:
 
 
Salaries and employee benefits
6,310
6,377
Occupancy
1,314
1,299
Regulatory assessments and fees
433
224
Consulting and legal fees
592
358
Network and information technology services
507
478
Other operating expense
2,018
1,440
Total non-interest expense
11,174
10,176
Net income before income tax expense
6,038
7,690
Income tax expense
1,426
1,881
Net income
$
4,612
$
5,809
Per share information:
Net income per common share, basic
$
0.23
$
0.29
Net income per common share, diluted
$
0.23
$
0.29
Cash dividends declared
$
0.05
$
-
Weighted average shares outstanding:
Common shares, basic
19,633,330
19,855,409
Common shares, diluted
19,698,258
19,940,606
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Income statement data:
Net interest income
$
15,158
$
14,376
$
14,022
$
14,173
$
15,997
Provision for credit losses
410
1,475
653
38
201
Net interest income after provision for credit losses
14,748
12,901
13,369
14,135
15,796
Service fees
1,651
1,348
1,329
1,173
1,205
Gain (loss) on sale of securities available for sale, net
-
(883)
(955)
-
(21)
Gain on sale of loans held for sale, net
67
105
255
94
347
Other income
746
756
1,532
579
539
Total non-interest income
2,464
1,326
2,161
1,846
2,070
Salaries and employee benefits
6,310
6,104
6,066
5,882
6,377
Occupancy
1,314
1,262
1,350
1,319
1,299
Regulatory assessments and fees
433
412
365
452
224
Consulting and legal fees
592
642
513
386
358
Network and information technology services
507
552
481
505
478
Other operating expense
2,018
1,747
1,686
1,908
1,440
Total non-interest expense
11,174
10,719
10,461
10,452
10,176
Net income before income tax expense
6,038
3,508
5,069
5,529
7,690
Income tax expense
1,426
787
1,250
1,333
1,881
Net income
$
4,612
$
2,721
$
3,819
$
4,196
$
5,809
Per share information:
Net income per common share, basic
$
0.23
$
0.14
$
0.20
$
0.21
$
0.29
Net income per common share, diluted
$
0.23
$
0.14
$
0.19
$
0.21
$
0.29
Cash dividends declared
$
0.05
$
-
$
-
$
-
$
-
Balance sheet data (at period-end):
 
 
 
Cash and cash equivalents
$
126,546
$
41,062
$
33,435
$
87,280
$
63,251
Securities available-for-sale
$
259,992
$
229,329
$
218,609
$
218,442
$
229,409
Securities held-to-maturity
$
173,038
$
174,974
$
197,311
$
220,956
$
186,428
Total securities
$
433,030
$
404,303
$
415,920
$
439,398
$
415,837
Loans held for investment
(1)
$
1,821,196
$
1,780,827
$
1,676,520
$
1,595,959
$
1,580,394
Allowance for credit losses
$
(21,454)
$
(21,084)
$
(19,493)
$
(18,815)
$
(18,887)
Total assets
$
2,489,142
$
2,339,093
$
2,244,602
$
2,225,914
$
2,163,821
Non-interest-bearing deposits
$
576,626
$
552,762
$
573,546
$
572,360
$
633,606
Interest-bearing deposits
$
1,526,168
$
1,384,377
$
1,347,376
$
1,348,941
$
1,196,856
Total deposits
$
2,102,794
$
1,937,139
$
1,920,922
$
1,921,301
$
1,830,462
FHLB advances and other borrowings
$
162,000
$
183,000
$
102,000
$
87,000
$
120,000
Total liabilities
$
2,294,131
$
2,147,125
$
2,061,718
$
2,042,229
$
1,979,963
Total stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
Capital ratios:
(2)
 
 
 
Leverage ratio
8.91%
9.28%
9.26%
9.32%
9.36%
Common equity tier 1 capital
11.80%
11.62%
11.97%
12.27%
12.04%
Tier 1 risk-based capital
11.80%
11.62%
11.97%
12.27%
12.04%
Total risk-based capital
 
12.98%
12.78%
13.10%
13.42%
13.20%
(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
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Average balance sheet data:
Cash and cash equivalents
$
132,266
$
57,069
$
90,742
$
94,313
$
50,822
Securities available-for-sale
$
239,896
$
215,649
$
222,134
$
224,913
$
230,336
Securities held-to-maturity
$
174,142
$
181,151
$
218,694
$
192,628
$
187,826
Total securities
$
414,038
$
396,800
$
440,828
$
417,541
$
418,162
Loans held for investment
(1)
$
1,781,528
$
1,698,611
$
1,610,864
$
1,569,266
$
1,547,393
Total assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
Interest-bearing deposits
$
1,473,831
$
1,336,470
$
1,353,516
$
1,270,657
$
1,179,878
Non-interest-bearing deposits
$
574,760
$
577,133
$
587,917
$
601,778
$
664,369
Total deposits
$
2,048,591
$
1,913,603
$
1,941,433
$
1,872,435
$
1,844,247
FHLB advances and other borrowings
$
164,187
$
139,000
$
85,326
$
93,075
$
61,600
Total liabilities
$
2,243,011
$
2,085,182
$
2,065,357
$
1,999,304
$
1,936,847
Total stockholders' equity
$
193,092
$
183,629
$
184,901
$
184,238
$
183,371
Performance ratios:
Return on average assets
(2)
0.76%
0.48%
0.67%
0.77%
1.11%
Return on average equity
(2)
9.61%
5.88%
8.19%
9.13%
12.85%
Net interest margin
(2)
2.62%
2.65%
2.60%
2.73%
3.22%
Non-interest income (loss) to average assets
(2)
0.41%
0.23%
0.38%
0.34%
0.40%
Efficiency ratio
(3)
63.41%
68.27%
64.64%
65.25%
56.32%
Loans by type (at period end):
(4)
Residential real estate
$
237,906
$
204,419
$
188,880
$
183,093
$
184,427
Commercial real estate
$
1,057,800
$
1,047,593
$
1,005,280
$
989,401
$
987,757
Commercial and industrial
$
228,045
$
219,757
$
212,975
$
169,401
$
160,947
Foreign banks
$
100,182
$
114,945
$
94,640
$
85,409
$
97,405
Consumer and other
 
$
194,325
$
191,930
$
173,096
$
167,845
$
149,410
Asset quality data:
 
 
Allowance for credit losses to total loans
1.18%
1.18%
1.16%
1.18%
1.20%
Allowance for credit losses to non-performing loans
4,705%
4,505%
4,070%
3,871%
3,886%
Total non-performing loans
(5)
$
456
$
468
$
479
$
486
 
$
486
Non-performing loans to total loans
0.03%
0.03%
0.03%
0.03%
0.03%
Non-performing assets to total assets
(5)
0.02%
0.02%
0.02%
0.02%
0.02%
Net charge-offs (recoveries of) to average loans
(2)
(0.00)%
(0.00)%
(0.00)%
0.01%
(0.01)%
Net charge-offs (recovery) of credit losses
$
(7)
$
(3)
$
(5)
$
29
$
(49)
Interest rates and yields:
(2)
Loans
6.01%
5.79%
5.55%
5.33%
5.17%
Investment securities
 
2.69%
2.46%
2.52%
2.26%
2.20%
Total interest-earning assets
5.34%
5.16%
4.89%
4.68%
4.51%
Deposits
2.76%
2.53%
2.39%
1.99%
1.29%
FHLB advances and other borrowings
4.10%
4.04%
3.19%
3.42%
3.27%
Total interest-bearing liabilities
3.86%
3.66%
3.41%
2.97%
2.08%
Other information:
 
 
 
 
 
Full-time equivalent employees
199
196
194
198
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 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 March 31,
2024
2023
Average
 
Balance
Interest
Yield/Rate
(1)
Average
 
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans
(2)
$
1,781,528
$
26,643
6.01%
$
1,547,393
$
19,711
5.17%
Investment securities
(3)
419,989
2,811
2.69%
421,717
2,286
2.20%
Other interest-earning assets
125,244
1,433
4.60%
43,084
382
3.60%
Total interest-earning assets
2,326,761
30,887
5.34%
2,012,194
22,379
4.51%
Non-interest-earning assets
109,342
 
 
108,024
 
 
Total assets
$
2,436,103
$
2,120,218
Liabilities and stockholders' equity
 
 
 
 
 
 
Interest-bearing liabilities:
Interest-bearing checking
$
53,344
369
2.78%
$
58,087
43
0.30%
Saving and money market deposits
1,097,575
10,394
3.81%
897,061
4,785
2.16%
Time deposits
322,912
3,294
4.10%
224,730
1,057
1.91%
Total interest-bearing deposits
1,473,831
14,057
3.84%
1,179,878
5,885
2.02%
FHLB advances and other borrowings
164,187
1,672
4.10%
61,600
497
3.27%
Total interest-bearing liabilities
1,638,018
15,729
3.86%
1,241,478
6,382
2.08%
Non-interest-bearing demand deposits
574,760
 
 
664,369
 
 
Other non-interest-bearing liabilities
30,233
31,000
Total liabilities
2,243,011
 
 
1,936,847
 
 
Stockholders' equity
193,092
183,371
Total liabilities and stockholders' equity
$
2,436,103
 
 
$
2,120,218
 
 
Net interest income
$
15,158
$
15,997
Net interest spread
(4)
1.48%
2.43%
Net interest margin
(5)
2.62%
3.22%
(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
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
4,612
$
2,721
$
3,819
$
4,196
$
5,809
Plus: Provision for income taxes
1,426
787
1,250
1,333
1,881
Plus: Provision for credit losses
410
1,475
653
38
201
PTPP income
$
6,448
$
4,983
$
5,722
$
5,567
$
7,891
PTPP return on average assets:
(1)
 
 
 
 
 
PTPP income
$
6,448
$
4,983
$
5,722
$
5,567
$
7,891
Average assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
PTPP return on average assets
(2)
1.06%
0.87%
1.01%
1.02%
1.51%
 
 
 
 
 
Operating net income:
(1)
Net income
$
4,612
$
2,721
$
3,819
$
4,196
$
5,809
Less: Net gains (losses) on sale of securities
-
(883)
(955)
-
(21)
Less: Tax effect on sale of securities
-
224
242
-
5
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
 
 
 
 
 
Operating PTPP income:
(1)
PTPP income
$
6,448
$
4,983
$
5,722
$
5,567
$
7,891
Less: Net gains (losses) on sale of securities
-
(883)
(955)
-
(21)
Operating PTPP income
$
6,448
$
5,866
$
6,677
$
5,567
$
7,912
Operating PTPP return on average assets:
(1)
 
 
 
 
 
Operating PTPP income
$
6,448
$
5,866
$
6,677
$
5,567
$
7,912
Average assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
Operating PTPP return on average assets
(2)
1.06%
1.03%
1.18%
1.02%
1.51%
 
 
 
 
 
Operating return on average assets:
(1)
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Average assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
Operating return on average assets
(2)
0.76%
0.59%
0.80%
0.77%
1.11%
Operating return on average equity:
(1)
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Average equity
$
193,092
$
183,629
$
184,901
$
184,238
$
183,371
Operating return on average equity
(2)
9.61%
7.30%
9.72%
9.13%
12.88%
Operating Revenue:
(1)
 
Net interest income
$
15,158
 
$
14,376
 
$
14,022
 
$
14,173
 
$
15,997
 
Non-interest income
 
2,464
1,326
2,161
 
1,846
 
2,070
 
Less: Net gains (losses) on sale of securities
-
(883)
(955)
-
(21)
 
Operating revenue
$
17,622
$
16,585
$
17,138
$
16,019
$
18,088
Operating Efficiency Ratio:
(1)
 
Total non-interest expense
$
11,174
 
$
10,719
 
$
10,461
 
$
10,452
 
$
10,176
 
Operating revenue
$
17,622
$
16,585
$
17,138
$
16,019
$
18,088
 
Operating efficiency ratio
63.41%
64.63%
61.04%
65.25%
56.26%
(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
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
Less: Intangible assets
-
-
-
-
-
Tangible stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,650,463
19,575,435
19,542,290
19,544,777
19,622,380
Tangible book value per common share
(2)
$
9.92
$
9.81
$
9.36
$
9.40
$
9.37
Operating diluted net income per common share:
(1)
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Total weighted average diluted shares of common stock
19,698,258
19,573,350
19,611,897
19,639,682
19,940,606
Operating diluted net income per common share:
$
0.23
$
0.17
 
$
 
0.23
 
$
 
0.21
 
$
 
0.29
Tangible Common Equity/Tangible Assets
(1)
 
Tangible stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
 
Tangible total assets
(3)
$
2,489,142
 
$
 
2,339,093
 
$
 
2,244,602
 
$
 
2,225,914
 
$
 
2,163,821
Tangible Common Equity/Tangible Assets
7.83%
8.21%
8.15%
8.25%
8.50%
(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.