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USCB Financial Holdings, Inc. Reports Second Quarter 2022 Results

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U.S. Century Bank
U.S. Century Bank

MIAMI, July 28, 2022 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank, reported net income of $5.3 million or $0.26 per diluted share for the three months ended June 30, 2022, compared with net income of $4.1 million or $0.64 and $0.13 per diluted share for Class A and Class B common stock, respectively, for the same period in 2021. On December 21, 2021, the Company agreed to exchange all the outstanding shares of Class B common stock for Class A common stock at a ratio of 1 share of Class A common stock for each 5 shares of Class B common stock. As of December 31, 2021, the Company’s only class of securities issued and outstanding was Class A common stock.

“Second quarter results demonstrated continued solid performance by our USCB team members. Total assets exceeded $2.0 billion for the first time, loans grew 19.9% from June 30, 2021, our net interest margin expanded to 3.37%, operating expenses remained in line with an efficiency ratio of 55.34%, and credit quality remains pristine. We are pleased with our profitability metrics and believe we will be able to continue to successfully execute on our strategy that delivers improved performance in the years to come,” said Luis de la Aguilera, President and Chief Executive Officer.

Unless otherwise stated, all percentage comparisons in the bullet points below are calculated for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021 and annualized where appropriate.

Profitability

  • Annualized return on average assets for the quarter ended June 30, 2022 was 1.08% compared to 0.98% for the second quarter of 2021.

  • Annualized return on average stockholders’ equity for the quarter ended June 30, 2022 was 11.38% compared to 9.74% for the second quarter of 2021.

  • The efficiency ratio for the quarter ended June 30, 2022 was 55.34% an improvement as compared to 62.00% for the second quarter of 2021.

  • Net interest margin increased to 3.37% for the quarter ended June 30, 2022 compared to 3.14% for the second quarter of 2021.

  • Net interest income before provision for credit losses was $15.6 million for the quarter ended June 30, 2022, an increase of $3.2 million or 25.4% compared to the second quarter of 2021. The increase was primarily driven by higher loan and investment securities income.

Balance Sheet

  • Total assets were $2.0 billion at June 30, 2022, representing an increase of $349.1 million or 20.9% from June 30, 2021.

  • Total loans were $1.4 billion at June 30, 2022, representing an increase of $227.6 million or 19.9% from June 30, 2021.

  • Total deposits were $1.7 billion at June 30, 2022, representing an increase of $299.9 million or 20.8% from June 30, 2021.

  • Total stockholders’ equity was $180.1 million at June 30, 2022, representing an increase of $13.8 million or 8.3% from June 30, 2021.

Asset Quality

  • The allowance for credit losses increased by $938 thousand to $15.8 million at June 30, 2022 from $14.9 million at June 30, 2021.

  • The allowance for credit losses represented 1.15% of total loans at June 30, 2022 compared to 1.30% at June 30, 2021.

  • Non-performing loans to total loans was 0.00% at June 30, 2022 and 2021.

Non-interest Income and Non-interest Expense

  • Non-interest income was $1.6 million for the three months ended June 30, 2022, an increase of $101 thousand or 6.7% compared to the same period in 2021.

  • Non-interest expense was $9.6 million for the three months ended June 30, 2022 compared to $8.7 million for the same period in 2021, an increase of $877 thousand or 10.1%. The increase was primarily driven by higher salaries and employee benefits due to new hires and salary compensation.

Capital

  • The Company and its wholly owned subsidiary, U.S. Century Bank (the “Bank”), exceeded all regulatory capital requirements and remained significantly above “well-capitalized” guidelines. As of June 30, 2022, total risk-based capital ratios for the Company and the Bank were 13.74% and 13.67%, respectively.

Conference Call and Webcast

The Company will host a conference call on Friday, July 29, 2022, at 9:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended June 30, 2022. To access the conference call, dial (866) 374-5140 (U.S. toll-free) and use conference code 31578788.

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 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. 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 identify 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 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 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 interest rate 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 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 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 the Company filed or will file with the SEC and, for periods prior to the completion of the bank holding company reorganization in December 2021, the Bank filed with the FDIC.

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 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 exhibits to this earnings release.

You should assume that all numbers are unaudited unless otherwise noted.

Contacts:

Investor Relations
InvestorRelations@uscentury.com

Media Relations
Martha Guerra-Kattou
MGuerra@uscentury.com

USCB FINANCIAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

2021

 

2022

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

$

14,053

 

 

$

11,538

 

 

$

27,035

 

 

$

23,406

 

Investment securities

 

2,510

 

 

 

1,968

 

 

 

4,839

 

 

 

3,812

 

Interest-bearing deposits in financial institutions

 

121

 

 

 

23

 

 

 

152

 

 

 

39

 

Total interest income

 

16,684

 

 

 

13,529

 

 

 

32,026

 

 

 

27,257

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

17

 

 

 

15

 

 

 

33

 

 

 

29

 

Savings and money markets accounts

 

615

 

 

 

523

 

 

 

1,166

 

 

 

1,071

 

Time deposits

 

271

 

 

 

379

 

 

 

530

 

 

 

933

 

Federal Home Loan Bank advances

 

139

 

 

 

138

 

 

 

276

 

 

 

275

 

Total interest expense

 

1,042

 

 

 

1,055

 

 

 

2,005

 

 

 

2,308

 

Net interest income before provision for credit losses

 

15,642

 

 

 

12,474

 

 

 

30,021

 

 

 

24,949

 

Provision for credit losses

 

705

 

 

 

-

 

 

 

705

 

 

 

(160

)

Net interest income after provision for credit losses

 

14,937

 

 

 

12,474

 

 

 

29,316

 

 

 

25,109

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service fees

 

1,083

 

 

 

903

 

 

 

1,983

 

 

 

1,792

 

Gain (loss) on sale of securities available for sale, net

 

(3

)

 

 

187

 

 

 

18

 

 

 

249

 

Gain on sale of loans held for sale, net

 

22

 

 

 

23

 

 

 

356

 

 

 

987

 

Loan settlement

 

-

 

 

 

-

 

 

 

161

 

 

 

-

 

Other non-interest income

 

515

 

 

 

403

 

 

 

1,044

 

 

 

809

 

Total non-interest income

 

1,617

 

 

 

1,516

 

 

 

3,562

 

 

 

3,837

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

5,913

 

 

 

5,213

 

 

 

11,788

 

 

 

10,491

 

Occupancy

 

1,251

 

 

 

1,411

 

 

 

2,521

 

 

 

2,798

 

Regulatory assessment and fees

 

226

 

 

 

195

 

 

 

439

 

 

 

373

 

Consulting and legal fees

 

398

 

 

 

373

 

 

 

915

 

 

 

558

 

Network and information technology services

 

448

 

 

 

332

 

 

 

835

 

 

 

840

 

Other operating expense

 

1,315

 

 

 

1,150

 

 

 

2,665

 

 

 

2,291

 

Total non-interest expense

 

9,551

 

 

 

8,674

 

 

 

19,163

 

 

 

17,351

 

Net income before income tax expense

 

7,003

 

 

 

5,316

 

 

 

13,715

 

 

 

11,595

 

Income tax expense

 

1,708

 

 

 

1,263

 

 

 

3,566

 

 

 

2,761

 

Net income

 

5,295

 

 

 

4,053

 

 

 

10,149

 

 

 

8,834

 

Preferred stock dividend

 

-

 

 

 

754

 

 

 

-

 

 

 

1,535

 

Net income available to common stockholders

$

5,295

 

 

$

3,299

 

 

$

10,149

 

 

$

7,299

 

Allocation of net income per common stock class: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

$

5,295

 

 

$

2,509

 

 

$

10,149

 

 

$

5,551

 

Class B

$

-

 

 

$

790

 

 

$

-

 

 

$

1,747

 

Per share information: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, basic

$

0.26

 

 

$

0.65

 

 

$

0.51

 

 

$

1.43

 

Net income per share, diluted

$

0.26

 

 

$

0.64

 

 

$

0.50

 

 

$

1.41

 

Class B common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, basic

$

-

 

 

$

0.13

 

 

$

-

 

 

$

0.29

 

Net income per share, diluted

$

-

 

 

$

0.13

 

 

$

-

 

 

$

0.29

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

20,000,753

 

 

 

3,889,469

 

 

 

19,997,869

 

 

 

3,889,469

 

Diluted

 

20,171,261

 

 

 

3,933,636

 

 

 

20,192,918

 

 

 

3,933,636

 

Class B common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

-

 

 

 

6,121,052

 

 

 

-

 

 

 

6,121,052

 

Diluted

 

-

 

 

 

6,121,052

 

 

 

-

 

 

 

6,121,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) For the three and six months ended June 30, 2021, the allocation of 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 the period. The income allocation is calculated using the weighted average shares outstanding of Class B common stock on an as-converted basis (20% per share equivalent to Class A common stock).

(2) For the three and six months ended June 30, 2021, the common stock outstanding, weighted average shares and net income per share for the Class A common stock have been adjusted to reflect the 1 for 5 reverse stock split that occurred in June 2021.

 


USCB FINANCIAL HOLDINGS, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or For the Three Months Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Income statement data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

15,642

 

 

$

14,379

 

 

$

14,076

 

 

$

13,471

 

 

$

12,474

 

Provision for credit losses

 

705

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net interest income after provision for credit losses

 

14,937

 

 

 

14,379

 

 

 

14,076

 

 

 

13,471

 

 

 

12,474

 

Service fees

 

1,083

 

 

 

900

 

 

 

961

 

 

 

856

 

 

 

903

 

Gain (loss) on sale of securities available for sale, net

 

(3

)

 

 

21

 

 

 

35

 

 

 

(70

)

 

 

187

 

Gain on sale of loans held for sale, net

 

22

 

 

 

334

 

 

 

107

 

 

 

532

 

 

 

23

 

Gain on sale of other assets

 

-

 

 

 

-

 

 

 

983

 

 

 

-

 

 

 

-

 

Loan settlement

 

-

 

 

 

161

 

 

 

-

 

 

 

2,500

 

 

 

-

 

Other income

 

515

 

 

 

529

 

 

 

558

 

 

 

399

 

 

 

403

 

Total non-interest income

 

1,617

 

 

 

1,945

 

 

 

2,644

 

 

 

4,217

 

 

 

1,516

 

Salaries and employee benefits

 

5,913

 

 

 

5,875

 

 

 

5,634

 

 

 

5,313

 

 

 

5,213

 

Occupancy

 

1,251

 

 

 

1,270

 

 

 

1,267

 

 

 

1,192

 

 

 

1,411

 

Regulatory assessment and fees

 

226

 

 

 

213

 

 

 

93

 

 

 

317

 

 

 

195

 

Consulting and legal fees

 

398

 

 

 

517

 

 

 

539

 

 

 

357

 

 

 

373

 

Network and information technology services

 

448

 

 

 

387

 

 

 

268

 

 

 

358

 

 

 

332

 

Other operating expense

 

1,315

 

 

 

1,350

 

 

 

1,518

 

 

 

1,470

 

 

 

1,150

 

Total non-interest expenses

 

9,551

 

 

 

9,612

 

 

 

9,319

 

 

 

9,007

 

 

 

8,674

 

Net income before income tax expense

 

7,003

 

 

 

6,712

 

 

 

7,401

 

 

 

8,681

 

 

 

5,316

 

Income tax expense

 

1,708

 

 

 

1,858

 

 

 

1,751

 

 

 

2,088

 

 

 

1,263

 

Net income

 

5,295

 

 

 

4,854

 

 

 

5,650

 

 

 

6,593

 

 

 

4,053

 

Preferred stock dividend

 

-

 

 

 

-

 

 

 

-

 

 

 

542

 

 

 

754

 

Exchange and redemption of preferred shares

 

-

 

 

 

-

 

 

 

-

 

 

 

89,585

 

 

 

-

 

Net income (loss) available to common stockholders

$

5,295

 

 

$

4,854

 

 

$

5,650

 

 

$

(83,534

)

 

$

3,299

 

Allocation of net income (loss) per common stock class: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

$

5,295

 

 

$

4,854

 

 

$

5,650

 

 

$

(77,278

)

 

$

2,509

 

Class B

$

-

 

 

$

-

 

 

$

-

 

 

$

(6,256

)

 

$

790

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, basic

$

0.26

 

 

$

0.24

 

 

$

0.30

 

 

$

(5.11

)

 

$

0.65

 

Net income (loss) per share, diluted

$

0.26

 

 

$

0.24

 

 

$

0.30

 

 

$

(5.11

)

 

$

0.64

 

Class B common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, basic

$

-

 

 

$

-

 

 

$

-

 

 

$

(1.02

)

 

$

0.13

 

Net income (loss) per share, diluted

$

-

 

 

$

-

 

 

$

-

 

 

$

(1.02

)

 

$

0.13

 

Balance sheet data (at period-end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

83,272

 

 

$

94,113

 

 

$

46,228

 

 

$

69,597

 

 

$

47,117

 

Securities available-for-sale

$

339,464

 

 

$

392,214

 

 

$

401,542

 

 

$

328,171

 

 

$

395,804

 

Securities held-to-maturity

$

116,671

 

 

$

122,361

 

 

$

122,658

 

 

$

99,866

 

 

$

-

 

Total securities

$

456,135

 

 

$

514,575

 

 

$

524,200

 

 

$

428,037

 

 

$

395,804

 

Loans held for investment (3)

$

1,372,733

 

 

$

1,258,388

 

 

$

1,190,081

 

 

$

1,176,412

 

 

$

1,145,095

 

Allowance for credit losses

$

(15,786

)

 

$

(15,074

)

 

$

(15,057

)

 

$

(14,900

)

 

$

(14,848

)

Total assets

$

2,016,086

 

 

$

1,967,252

 

 

$

1,853,939

 

 

$

1,755,011

 

 

$

1,667,005

 

Non-interest-bearing deposits

$

653,708

 

 

$

656,622

 

 

$

605,425

 

 

$

570,091

 

 

$

555,993

 

Interest-bearing deposits

$

1,085,012

 

 

$

1,056,672

 

 

$

984,954

 

 

$

914,498

 

 

$

882,783

 

Total deposits

$

1,738,720

 

 

$

1,713,294

 

 

$

1,590,379

 

 

$

1,484,589

 

 

$

1,438,776

 

Federal Home Loan Bank advances and other borrowings

$

66,000

 

 

$

36,000

 

 

$

36,000

 

 

$

36,000

 

 

$

36,000

 

Total liabilities

$

1,836,018

 

 

$

1,775,213

 

 

$

1,650,042

 

 

$

1,553,093

 

 

$

1,500,703

 

Total stockholders' equity

$

180,068

 

 

$

192,039

 

 

$

203,897

 

 

$

201,918

 

 

$

166,302

 

Capital ratios:(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leverage ratio

 

9.43

%

 

 

9.47

%

 

 

9.55

%

 

 

9.69

%

 

 

7.91

%

Common equity tier 1 capital

 

12.65

%

 

 

13.35

%

 

 

13.70

%

 

 

13.85

%

 

 

9.24

%

Tier 1 risk-based capital

 

12.65

%

 

 

13.35

%

 

 

13.70

%

 

 

13.85

%

 

 

11.44

%

Total risk-based capital

 

13.74

%

 

 

14.49

%

 

 

14.92

%

 

 

15.10

%

 

 

12.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The allocation of net income (loss) 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 income (loss) allocation is calculated using the weighted average shares outstanding of Class B common stock on an as-converted basis (20% per share equivalent to Class A common stock).

(2) The quarter ended June 30, 2021 was adjusted for the 1 for 5 reverse stock split.

(3) Loan amounts include deferred fees/costs.

(4) The Company was formed during the quarter ended December 31, 2021. As such, the capital ratios for Q2 2022, Q1 2022 and Q4 2021 are for the Company and for Q3 2021 and prior are for the Bank. The Company, as a small bank holding company, is not subject to regulatory capital requirements.

 


USCB FINANCIAL HOLDINGS, INC.

AVERAGE BALANCES, RATIOS, AND OTHER (UNAUDITED)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or For the Three Months Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Average balance sheet data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

80,254

 

 

$

99,911

 

 

$

87,819

 

 

$

116,622

 

 

$

108,028

 

Securities available-for-sale

$

370,933

 

 

$

385,748

 

 

$

374,589

 

 

$

346,407

 

 

$

382,990

 

Securities held-to-maturity

$

120,130

 

 

$

122,381

 

 

$

114,108

 

 

$

51,238

 

 

$

-

 

Total securities

$

491,063

 

 

$

508,129

 

 

$

488,697

 

 

$

397,645

 

 

$

382,990

 

Loans held for investment(1)

$

1,296,476

 

 

$

1,211,432

 

 

$

1,158,755

 

 

$

1,144,275

 

 

$

1,088,492

 

Total assets

$

1,968,381

 

 

$

1,913,484

 

 

$

1,828,037

 

 

$

1,741,423

 

 

$

1,660,060

 

Interest-bearing deposits

$

1,071,709

 

 

$

1,023,844

 

 

$

958,241

 

 

$

912,330

 

 

$

896,271

 

Non-interest-bearing deposits

$

644,975

 

 

$

626,400

 

 

$

603,735

 

 

$

564,928

 

 

$

535,894

 

Total deposits

$

1,716,684

 

 

$

1,650,244

 

 

$

1,561,976

 

 

$

1,477,258

 

 

$

1,432,165

 

Federal Home Loan Bank advances and other borrowings

$

36,330

 

 

$

36,011

 

 

$

36,000

 

 

$

36,000

 

 

$

36,000

 

Total liabilities

$

1,781,784

 

 

$

1,711,624

 

 

$

1,625,675

 

 

$

1,546,414

 

 

$

1,493,129

 

Total stockholders' equity

$

186,597

 

 

$

201,860

 

 

$

202,362

 

 

$

195,009

 

 

$

166,931

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

1.08

%

 

 

1.03

%

 

 

1.23

%

 

 

1.50

%

 

 

0.98

%

Return on average equity (2)

 

11.38

%

 

 

9.75

%

 

 

11.08

%

 

 

13.41

%

 

 

9.74

%

Net interest margin (2)

 

3.37

%

 

 

3.22

%

 

 

3.19

%

 

 

3.19

%

 

 

3.14

%

Non-interest income to average assets (2)

 

0.33

%

 

 

0.41

%

 

 

0.57

%

 

 

0.96

%

 

 

0.37

%

Efficiency ratio (3)

 

55.34

%

 

 

58.88

%

 

 

55.74

%

 

 

50.92

%

 

 

62.00

%

Loans by type (at period end): (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

$

203,662

 

 

$

204,317

 

 

$

201,359

 

 

$

201,124

 

 

$

213,575

 

Commercial real estate

$

843,445

 

 

$

782,072

 

 

$

704,988

 

 

$

693,469

 

 

$

673,944

 

Commercial and industrial

$

131,271

 

 

$

134,832

 

 

$

146,592

 

 

$

137,486

 

 

$

155,440

 

Foreign banks

$

84,770

 

 

$

63,985

 

 

$

59,491

 

 

$

58,839

 

 

$

62,042

 

Consumer and other

$

109,250

 

 

$

73,765

 

 

$

79,229

 

 

$

87,515

 

 

$

43,979

 

Asset quality data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

1.15

%

 

 

1.20

%

 

 

1.27

%

 

 

1.27

%

 

 

1.30

%

Allowance for credit losses to non-performing loans

 

-

%

 

 

-

%

 

 

1,265

%

 

 

82,778

%

 

 

74,240

%

Non-accrual loans less non-accrual TDRs

 

-

 

 

 

-

 

 

 

1,190

 

 

 

-

 

 

 

-

 

Non-accrual TDRs

 

-

 

 

 

-

 

 

 

-

 

 

 

18

 

 

 

20

 

Loans- over 90 days past due and accruing

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total non-performing loans(5)

 

-

 

 

 

-

 

 

 

1,190

 

 

 

18

 

 

 

20

 

Non-performing loans to total loans

 

-

%

 

 

-

%

 

 

0.10

%

 

 

0.00

%

 

 

0.00

%

Non-performing assets to total assets

 

-

%

 

 

-

%

 

 

0.06

%

 

 

0.00

%

 

 

0.00

%

Net charge-offs (recoveries of) to average loans (2)

 

(0.00

)%

 

 

(0.01

)%

 

 

(0.05

)%

 

 

(0.02

)%

 

 

0.06

%

Net charge-offs (recovery of) credit losses

 

(7

)

 

 

(17

)

 

 

(157

)

 

 

(51

)

 

 

160

 

Interest rates and yields:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

4.35

%

 

 

4.35

%

 

 

4.32

%

 

 

4.29

%

 

 

4.19

%

Investment securities

 

2.04

%

 

 

1.85

%

 

 

1.81

%

 

 

1.86

%

 

 

2.04

%

Total interest-earning assets

 

3.60

%

 

 

3.43

%

 

 

3.41

%

 

 

3.43

%

 

 

3.41

%

Deposits

 

0.21

%

 

 

0.20

%

 

 

0.21

%

 

 

0.22

%

 

 

0.26

%

Borrowings and repurchase agreements

 

1.53

%

 

 

1.54

%

 

 

1.51

%

 

 

1.52

%

 

 

1.52

%

Total interest-bearing liabilities

 

0.38

%

 

 

0.37

%

 

 

0.38

%

 

 

0.40

%

 

 

0.45

%

Other information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full-time equivalent employees

 

192

 

 

 

190

 

 

 

187

 

 

 

184

 

 

 

183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 for the dates presented since there were no impaired investments or other real estate owned (OREO) recorded.

 


USCB FINANCIAL HOLDINGS, INC.

NET INTEREST MARGIN (UNAUDITED)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

2022

 

2021

 

Average
Balance

 

Interest

 

Yield/Rate (1)

 

Average
Balance

 

Interest

 

Yield/Rate (1)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

1,296,476

 

$

14,053

 

4.35

%

 

$

1,088,492

 

$

11,538

 

4.19

%

Investment securities (3)

 

493,352

 

 

2,510

 

2.04

%

 

 

385,090

 

 

1,968

 

2.04

%

Other interest-earnings assets

 

69,503

 

 

121

 

0.70

%

 

 

101,134

 

 

23

 

0.09

%

Total interest-earning assets

 

1,859,331

 

 

16,684

 

3.60

%

 

 

1,574,716

 

 

13,529

 

3.41

%

Non-interest-earning assets

 

109,050

 

 

 

 

 

 

 

85,344

 

 

 

 

 

Total assets

$

1,968,381

 

 

 

 

 

 

$

1,660,060

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

66,349

 

 

17

 

0.10

%

 

$

52,620

 

 

15

 

0.11

%

Saving and money market deposits

 

781,076

 

 

615

 

0.32

%

 

 

607,752

 

 

523

 

0.35

%

Time deposits

 

224,284

 

 

271

 

0.48

%

 

 

235,899

 

 

379

 

0.65

%

Total interest-bearing deposits

 

1,071,709

 

 

903

 

0.34

%

 

 

896,271

 

 

917

 

0.41

%

Borrowings and repurchase agreements

 

36,330

 

 

139

 

1.53

%

 

 

36,000

 

 

138

 

1.52

%

Total interest-bearing liabilities

 

1,108,039

 

 

1,042

 

0.38

%

 

 

932,271

 

 

1,055

 

0.45

%

Non-interest-bearing demand deposits

 

644,975

 

 

 

 

 

 

 

535,894

 

 

 

 

 

Other non-interest-bearing liabilities

 

28,770

 

 

 

 

 

 

 

24,964

 

 

 

 

 

Total liabilities

 

1,781,784

 

 

 

 

 

 

 

1,493,129

 

 

 

 

 

Stockholders' equity

 

186,597

 

 

 

 

 

 

 

166,931

 

 

 

 

 

Total liabilities and stockholders' equity

$

1,968,381

 

 

 

 

 

 

$

1,660,060

 

 

 

 

 

Net interest income

 

 

 

$

15,642

 

 

 

 

 

 

$

12,474

 

 

Net interest spread (4)

 

 

 

 

 

 

3.22

%

 

 

 

 

 

 

 

2.96

%

Net interest margin (5)

 

 

 

 

 

 

3.37

%

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 on total interest-earning assets minus the average rate on total interest-bearing liabilities.

(5) Net interest margin is the ratio of net interest income to total interest-earning assets.

 


USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or For the Three Months Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Pre-tax pre-provision ("PTPP") income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

5,295

 

 

$

4,854

 

 

$

5,650

 

 

$

6,593

 

 

$

4,053

 

Plus: Provision for income taxes

 

1,708

 

 

 

1,858

 

 

 

1,751

 

 

 

2,088

 

 

 

1,263

 

Plus: Provision for credit losses

 

705

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

PTPP income

$

7,708

 

 

$

6,712

 

 

$

7,401

 

 

$

8,681

 

 

$

5,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PTPP return on average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PTPP income

$

7,708

 

 

$

6,712

 

 

$

7,401

 

 

$

8,681

 

 

$

5,316

 

Average assets

$

1,968,381

 

 

$

1,913,484

 

 

$

1,828,037

 

 

$

1,741,423

 

 

$

1,660,060

 

PTPP return on average assets (1)

 

1.57

%

 

 

1.42

%

 

 

1.61

%

 

 

1.98

%

 

 

1.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

5,295

 

 

$

4,854

 

 

$

5,650

 

 

$

6,593

 

 

$

4,053

 

Less: Net gains (losses) on sale of securities

 

(3

)

 

 

21

 

 

 

35

 

 

 

(70

)

 

 

187

 

Less: Tax effect on sale of securities

 

1

 

 

 

(5

)

 

 

(9

)

 

 

17

 

 

 

(46

)

Operating net income

$

5,297

 

 

$

4,838

 

 

$

5,624

 

 

$

6,646

 

 

$

3,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating PTPP Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PTPP income

$

7,708

 

 

$

6,712

 

 

$

7,401

 

 

$

8,681

 

 

$

5,316

 

Less: Net gains (losses) on sale of securities

 

(3

)

 

 

21

 

 

 

35

 

 

 

(70

)

 

 

187

 

Operating PTPP income

$

7,711

 

 

$

6,691

 

 

$

7,366

 

 

$

8,751

 

 

$

5,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating PTPP return on average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating PTPP income

$

7,711

 

 

$

6,691

 

 

$

7,366

 

 

$

8,751

 

 

$

5,129

 

Average assets

$

1,968,381

 

 

$

1,913,484

 

 

$

1,828,037

 

 

$

1,741,423

 

 

$

1,660,060

 

Operating PTPP return on average assets (1)

 

1.57

%

 

 

1.42

%

 

 

1.60

%

 

 

1.99

%

 

 

1.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating net income

$

5,297

 

 

$

4,838

 

 

$

5,624

 

 

$

6,646

 

 

$

3,912

 

Average assets

$

1,968,381

 

 

$

1,913,484

 

 

$

1,828,037

 

 

$

1,741,423

 

 

$

1,660,060

 

Operating return on average assets (1)

 

1.08

%

 

 

1.03

%

 

 

1.22

%

 

 

1.51

%

 

 

0.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 


USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or For the Three Months Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

Tangible book value per common share (at period-end):(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity (GAAP)

$

180,068

 

$

192,039

 

$

203,897

 

$

201,918

 

 

$

166,302

Less: Intangible assets

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

Less: Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

 

24,616

Tangible stockholders' equity (non-GAAP)

$

180,068

 

$

192,039

 

$

203,897

 

$

201,918

 

 

$

141,686

Total shares issued and outstanding (at period-end):(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common shares

 

20,000,753

 

 

20,000,753

 

 

19,991,753

 

 

18,767,541

 

 

 

3,889,469

Class B common shares

 

-

 

 

-

 

 

-

 

 

1,224,212

 

 

 

1,224,212

Total common shares issued and outstanding

 

20,000,753

 

 

20,000,753

 

 

19,991,753

 

 

19,991,753

 

 

 

5,113,681

Tangible book value per common share (non-GAAP)(3)

$

9.00

 

$

9.60

 

$

10.20

 

$

10.10

 

 

$

27.71

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Operating net income available to common stockholders:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

5,295

 

$

4,854

 

$

5,650

 

$

6,593

 

 

$

4,053

Less: Preferred dividends

 

-

 

 

-

 

 

-

 

 

542

 

 

 

754

Less: Exchange and redemption of preferred shares

 

-

 

 

-

 

 

-

 

 

89,585

 

 

 

-

Net income (loss) available to common stockholders (GAAP)

 

5,295

 

 

4,854

 

 

5,650

 

 

(83,534

)

 

 

3,299

Add back: Exchange and redemption of preferred shares

 

-

 

 

-

 

 

-

 

 

89,585

 

 

 

-

Operating net income avail. to common stock (non-GAAP)

$

5,295

 

$

4,854

 

$

5,650

 

$

6,051

 

 

$

3,299

Allocation of operating net income per common stock class:

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Class A common stock

$

5,295

 

$

4,854

 

$

5,650

 

$

5,598

 

 

$

2,509

Class B common stock

$

-

 

$

-

 

$

-

 

$

453

 

 

$

790

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Basic

 

20,000,753

 

 

19,994,953

 

 

18,913,914

 

 

15,121,460

 

 

 

3,889,469

Diluted

 

20,171,261

 

 

20,109,783

 

 

19,023,686

 

 

15,187,729

 

 

 

3,933,636

Class B common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

-

 

 

-

 

 

-

 

 

6,121,052

 

 

 

6,121,052

Diluted

 

-

 

 

-

 

 

-

 

 

6,121,052

 

 

 

6,121,052

Diluted EPS: (4) (5)

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Class A common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per diluted share (GAAP)

$

0.26

 

$

0.24

 

$

0.30

 

$

(5.11

)

 

$

0.64

Add back: Exchange and redemption of preferred shares

 

-

 

 

-

 

 

-

 

 

5.48

 

 

 

-

Operating net income per diluted share (non-GAAP)

$

0.26

 

$

0.24

 

$

0.30

 

$

0.37

 

 

$

0.64

Class B common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per diluted share (GAAP)

$

-

 

$

-

 

$

-

 

$

(1.02

)

 

$

0.13

Add back: Exchange and redemption of preferred shares

 

-

 

 

-

 

 

-

 

 

1.09

 

 

 

-

Operating net income per diluted share (non-GAAP)

$

-

 

$

-

 

$

-

 

$

0.07

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company believes these non-GAAP measurements 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 its Class A common stock on July 27, 2021, in which it 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 would have been antidilutive.  
(5) During the quarter ended December 31, 2021, the Company entered into agreements with the Class 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 was calculated using the weighted average shares outstanding of Class B common stock on an as-converted basis.