USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS Since Going Public of $0.31 for Q2 2024

Rhea-AI Summary

USCB Financial Holdings, Inc. (NASDAQ: USCB) reported record fully diluted EPS of $0.31 for Q2 2024, up from $0.21 in Q2 2023. The company achieved net income of $6.2 million, compared to $4.2 million in the same period last year. Key highlights include:

- Annualized return on average assets increased to 1.01% from 0.77%
- Net interest margin improved to 2.94% from 2.73%
- Total assets grew 10.4% to $2.5 billion
- Total loans increased 17.1% to $1.9 billion
- Total deposits rose 7.0% to $2.1 billion
- Efficiency ratio improved to 56.33% from 65.25%

The company declared a cash dividend of $0.05 per share and reported strong capital ratios, with total risk-based capital at 13.12% for the company and 13.01% for the bank.

Positive

• Record fully diluted EPS of $0.31, up 47.6% year-over-year
• Net income increased 47.6% to $6.2 million
• Annualized return on average assets improved to 1.01% from 0.77%
• Net interest margin expanded to 2.94% from 2.73%
• Total assets grew 10.4% to $2.5 billion
• Total loans increased 17.1% to $1.9 billion
• Total deposits rose 7.0% to $2.1 billion
• Efficiency ratio improved to 56.33% from 65.25%
• Tangible book value per common share increased 8.9% to $10.24

Negative

• None.

Insights

Financial Analyst

USCB Financial Holdings' Q2 2024 results demonstrate robust financial performance and strategic execution. The record fully diluted EPS of $0.31 represents a 47.6% increase year-over-year, signaling strong profit growth. Key highlights include:

• Annualized ROAA improved to 1.01% from 0.77%
• Annualized ROE rose to 12.63% from 9.13%
• Efficiency ratio improved to 56.33% from 65.25%
• Net interest margin expanded to 2.94% from 2.73%

These metrics indicate enhanced profitability and operational efficiency. The 22.1% increase in net interest income before provision for credit losses to $17.3 million reflects effective interest rate management and loan growth.

Balance sheet growth is notable, with total assets up 10.4%, loans up 17.1% and deposits up 7.0% year-over-year. This growth, coupled with stable asset quality (non-performing loans at 0.04%), suggests a well-managed expansion strategy.

The declaration of a $0.05 per share dividend and ongoing share repurchases indicate confidence in the company's financial position and commitment to shareholder returns. However, investors should monitor the impact of these capital actions on the bank's capital ratios, which remain above regulatory requirements but have slightly decreased year-over-year.

Overall, USCB Financial Holdings' Q2 2024 results reflect a well-executed strategy, balancing growth, profitability and shareholder returns in a challenging banking environment.

Banking Industry Expert

USCB Financial Holdings' Q2 2024 results showcase a bank adeptly navigating the current financial landscape. The 21% increase in net income year-over-year is particularly impressive given the challenges facing the banking sector.

The expansion of net interest margin to 2.94% is noteworthy, especially considering the competitive deposit environment. This suggests effective asset-liability management and potentially a favorable deposit mix. The 7.0% year-over-year deposit growth, amidst industry-wide deposit pressures, indicates strong customer relationships and potentially competitive deposit offerings.

Asset quality remains robust with non-performing loans at a mere 0.04% of total loans. The slight increase in the allowance for credit losses (ACL) to 1.19% of total loans appears prudent given the loan growth and uncertain economic outlook.

The efficiency ratio improvement to 56.33% is commendable and places USCB among the more efficient regional banks. This efficiency, combined with the strong loan growth of 17.1%, suggests the bank is effectively leveraging its resources to drive growth without compromising cost control.

While the results are strong, investors should remain vigilant about potential headwinds, including interest rate uncertainties and broader economic challenges that could impact loan demand and credit quality in the future. The bank's ability to maintain this performance in varying economic conditions will be important for long-term success.

MIAMI, July 25, 2024 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $6.2 million or $0.31 per fully diluted share for the three months ended June 30, 2024, compared with net income of $4.2 million or $0.21 per fully diluted share for the same period in 2023.

“Today marks another milestone for our bank, as we report for the quarter a fully diluted EPS of $0.31. This achievement reflects the consistent execution of our strategic initiatives, supported by disciplined risk management practices and an associate base committed to superior customer service,” said Luis de la Aguilera, Chairman, President, and CEO. “Our focused efforts have resulted in a ROAA above 1.00%, strong NIM expansion, an efficiency ratio of 56% and continued stable credit metrics.” said de la Aguilera.

Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended June 30, 2024 compared to at or for the quarter ended June 30, 2023 and annualized where appropriate.

Profitability

• Annualized return on average assets for the quarter ended June 30, 2024 was 1.01% compared to 0.77% for the second quarter of 2023.
  
  
• Annualized return on average stockholders’ equity for the quarter ended June 30, 2024 was 12.63% compared to 9.13% for the second quarter of 2023.
  
  
• The efficiency ratio for the quarter ended June 30, 2024 was 56.33% compared to 65.25% for the second quarter of 2023.
  
  
• Net interest margin for the quarter ended June 30, 2024 was 2.94% compared to 2.73% for the second quarter of 2023.
  
  
• Net interest income before provision for credit losses was $17.3 million for the quarter ended June 30, 2024, an increase of $3.1 million or 22.1% compared to the second quarter of 2023.
  

Balance Sheet

• Total assets were $2.5 billion at June 30, 2024, representing an increase of $232.4 million or 10.4% from June 30, 2023.
  
  
• Total loans were $1.9 billion at June 30, 2024, representing an increase of $273.3 million or 17.1% from June 30, 2023.
  
  
• Total deposits were $2.1 billion at June 30, 2024, representing an increase of $135.4 million or 7.0% from June 30, 2023.
  
  
• Total stockholders’ equity was $201.0 million at June 30, 2024, representing an increase of $17.3 million or 9.4% from June 30, 2023. Total stockholders’ equity included accumulated comprehensive loss of $44.7 million at June 30, 2024 compared to accumulated comprehensive loss of $46.3 million at June 30, 2023.
  

Asset Quality

• The allowance for credit losses (“ACL”) increased by $3.4 million to $22.2 million at June 30, 2024 from $18.8 million at June 30, 2023.
  
  
• The ACL represented 1.19% of total loans at June 30, 2024 and 1.18% at June 30, 2023.
  
  
• Non-performing loans to total loans was 0.04% at June 30, 2024 and 0.03% at June 30, 2023.
  

Non-interest Income and Non-interest Expense

• Non-interest income was $3.2 million for the three months ended June 30, 2024, an increase of $1.4 million or 73.9% compared to $1.8 million for the same period in 2023.
  
  
• Non-interest expense was $11.6 million for the three months ended June 30, 2024, an increase of $1.1 million or 10.6% compared to $10.5 million for the same period in 2023.
  

Capital

• On July 22, 2024, the Company’s Board of Directors declared a cash dividend of $0.05 per share of the Company’s Class A common stock. The dividend will be paid on September 5, 2024 to shareholders of record at the close of business on August 15, 2024.
  
  
• As of June 30, 2024, total risk-based capital ratios for the Company and the Bank were 13.12% and 13.01%, respectively.
  
  
• Tangible book value per common share (a non-GAAP measure) was $10.24 at June 30, 2024, representing an increase of $0.84 or 8.9% increase from $9.40 at June 30, 2023.
  
  
• During the quarter the Company repurchased 25,000 shares of Class A common stock at a weighted average cost per share of $12.04. The aggregate purchase price for these transactions was approximately $301.0 thousand, including transaction costs. As of June 30, 2024, 547,980 shares remained authorized for repurchase under the Company’s share repurchase programs.
  

Conference Call and Webcast

The Company will host a conference call on Friday, July 26, 2024, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended June 30, 2024. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.

Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About USCB Financial Holdings, Inc.

USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking center near you, please call (305) 715-5200 or visit www.uscentury.com. 

Forward-Looking Statements

This earnings release may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “continue,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring.

These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:

• the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
• our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
• the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
• the efficiency and effectiveness of our internal control procedures and processes;
• our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
• adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
• deposit attrition and the level of our uninsured deposits;
• legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the implementation of the Current Expected Credit Losses (“CECL”) standard;
• the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate;
• the effects of climate change;
• the concentration of ownership of our common stock;
• fluctuations in the price of our common stock;
• our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
• inflation, interest rate, unemployment rate, and market and monetary fluctuations;
• impacts of international hostilities and geopolitical events;
• increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin;
• the loss of key employees;
• the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
• other risks described in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”).
  

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance  that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this earnings release are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports the Company filed or will file with the SEC.

Non-GAAP Financial Measures

This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s operations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earnings release.

All numbers included in this press release are unaudited unless otherwise noted.

Contacts:

Investor Relations
InvestorRelations@uscentury.com 

Media Relations
Martha Guerra-Kattou
MGuerra@uscentury.com 

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,
	2024			2023			2024			2023
Interest income:
Loans, including fees	$	28,017		$	20,847		$	54,660		$	40,558
Investment securities		3,069			2,382			5,880			4,668
Interest-bearing deposits in financial institutions		1,531			1,051			2,964			1,433
Total interest income		32,617			24,280			63,504			46,659
Interest expense:
Interest-bearing checking		391			200			760			243
Savings and money market accounts		10,071			6,968			20,465			11,753
Time deposits		3,222			2,145			6,516			3,202
FHLB advances and other borrowings		1,622			794			3,294			1,291
Total interest expense		15,306			10,107			31,035			16,489
Net interest income before provision for credit losses		17,311			14,173			32,469			30,170
Provision for credit losses		786			38			1,196			239
Net interest income after provision for credit losses		16,525			14,135			31,273			29,931
Non-interest income:
Service fees		1,977			1,173			3,628			2,378
Gain (loss) on sale of securities available for sale, net		14			-			14			(21	)
Gain on sale of loans held for sale, net		417			94			484			441
Other non-interest income		803			579			1,549			1,118
Total non-interest income		3,211			1,846			5,675			3,916
Non-interest expense:
Salaries and employee benefits		7,353			5,882			13,663			12,259
Occupancy		1,266			1,319			2,580			2,618
Regulatory assessments and fees		476			452			909			676
Consulting and legal fees		263			386			855			744
Network and information technology services		479			505			986			983
Other operating expense		1,723			1,908			3,741			3,348
Total non-interest expense		11,560			10,452			22,734			20,628
Net income before income tax expense		8,176			5,529			14,214			13,219
Income tax expense		1,967			1,333			3,393			3,214
Net income	$	6,209		$	4,196		$	10,821		$	10,005
Per share information:
Net income per common share, basic	$	0.32		$	0.21		$	0.55		$	0.51
Net income per common share, diluted	$	0.31		$	0.21		$	0.55		$	0.51
Cash dividends declared	$	0.05		$	-		$	0.10		$	-
Weighted average shares outstanding:
Common shares, basic		19,650,681			19,590,359			19,642,006			19,722,152
Common shares, diluted		19,717,167			19,639,682			19,707,561			19,790,756

USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
	As of or For the Three Months Ended
	6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
Income statement data:
Net interest income	$	17,311			$	15,158			$	14,376			$	14,022			$	14,173
Provision for credit losses		786				410				1,475				653				38
Net interest income after provision for credit losses		16,525				14,748				12,901				13,369				14,135
Service fees		1,977				1,651				1,348				1,329				1,173
Gain (loss) on sale of securities available for sale, net		14				-				(883	)			(955	)			-
Gain on sale of loans held for sale, net		417				67				105				255				94
Other income		803				746				756				1,532				579
Total non-interest income		3,211				2,464				1,326				2,161				1,846
Salaries and employee benefits		7,353				6,310				6,104				6,066				5,882
Occupancy		1,266				1,314				1,262				1,350				1,319
Regulatory assessments and fees		476				433				412				365				452
Consulting and legal fees		263				592				642				513				386
Network and information technology services		479				507				552				481				505
Other operating expense		1,723				2,018				1,747				1,686				1,908
Total non-interest expense		11,560				11,174				10,719				10,461				10,452
Net income before income tax expense		8,176				6,038				3,508				5,069				5,529
Income tax expense		1,967				1,426				787				1,250				1,333
Net income	$	6,209			$	4,612			$	2,721			$	3,819			$	4,196
Per share information:
Net income per common share, basic	$	0.32			$	0.23			$	0.14			$	0.20			$	0.21
Net income per common share, diluted	$	0.31			$	0.23			$	0.14			$	0.19			$	0.21
Cash dividends declared	$	0.05			$	0.05			$	-			$	-			$	-
Balance sheet data (at period-end):
Cash and cash equivalents	$	77,261			$	126,546			$	41,062			$	33,435			$	87,280
Securities available-for-sale	$	236,444			$	259,992			$	229,329			$	218,609			$	218,442
Securities held-to-maturity	$	169,606			$	173,038			$	174,974			$	197,311			$	220,956
Total securities	$	406,050			$	433,030			$	404,303			$	415,920			$	439,398
Loans held for investment (1)	$	1,869,249			$	1,821,196			$	1,780,827			$	1,676,520			$	1,595,959
Allowance for credit losses	$	(22,230	)		$	(21,454	)		$	(21,084	)		$	(19,493	)		$	(18,815	)
Total assets	$	2,458,270			$	2,489,142			$	2,339,093			$	2,244,602			$	2,225,914
Non-interest-bearing demand deposits	$	579,243			$	576,626			$	552,762			$	573,546			$	572,360
Interest-bearing deposits	$	1,477,459			$	1,526,168			$	1,384,377			$	1,347,376			$	1,348,941
Total deposits	$	2,056,702			$	2,102,794			$	1,937,139			$	1,920,922			$	1,921,301
FHLB advances and other borrowings	$	162,000			$	162,000			$	183,000			$	102,000			$	87,000
Total liabilities	$	2,257,250			$	2,294,131			$	2,147,125			$	2,061,718			$	2,042,229
Total stockholders' equity	$	201,020			$	195,011			$	191,968			$	182,884			$	183,685
Capital ratios:(2)
Leverage ratio		9.03	%			8.91	%			9.28	%			9.26	%			9.32	%
Common equity tier 1 capital		11.93	%			11.80	%			11.62	%			11.97	%			12.27	%
Tier 1 risk-based capital		11.93	%			11.80	%			11.62	%			11.97	%			12.27	%
Total risk-based capital		13.12	%			12.98	%			12.78	%			13.10	%			13.42	%
(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. The Bank's total risk-based capital for second quarter 2024 was 13.01%.

USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
	As of or For the Three Months Ended
	6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
Average balance sheet data:
Cash and cash equivalents	$	107,831			$	132,266			$	57,069			$	90,742			$	94,313
Securities available-for-sale	$	263,345			$	239,896			$	215,649			$	222,134			$	224,913
Securities held-to-maturity	$	171,682			$	174,142			$	181,151			$	218,694			$	192,628
Total securities	$	435,027			$	414,038			$	396,800			$	440,828			$	417,541
Loans held for investment(1)	$	1,828,487			$	1,781,528			$	1,698,611			$	1,610,864			$	1,569,266
Total assets	$	2,479,222			$	2,436,103			$	2,268,811			$	2,250,258			$	2,183,542
Interest-bearing deposits	$	1,473,513			$	1,473,831			$	1,336,470			$	1,353,516			$	1,270,657
Non-interest-bearing demand deposits	$	610,370			$	574,760			$	577,133			$	587,917			$	601,778
Total deposits	$	2,083,883			$	2,048,591			$	1,913,603			$	1,941,433			$	1,872,435
FHLB advances and other borrowings	$	162,000			$	164,187			$	139,000			$	85,326			$	93,075
Total liabilities	$	2,281,467			$	2,243,011			$	2,085,182			$	2,065,357			$	1,999,304
Total stockholders' equity	$	197,755			$	193,092			$	183,629			$	184,901			$	184,238
Performance ratios:
Return on average assets (2)		1.01	%			0.76	%			0.48	%			0.67	%			0.77	%
Return on average equity (2)		12.63	%			9.61	%			5.88	%			8.19	%			9.13	%
Net interest margin (2)		2.94	%			2.62	%			2.65	%			2.60	%			2.73	%
Non-interest income to average assets (2)		0.52	%			0.41	%			0.23	%			0.38	%			0.34	%
Efficiency ratio (3)		56.33	%			63.41	%			68.27	%			64.64	%			65.25	%
Loans by type (at period end): (4)
Residential real estate	$	256,807			$	237,906			$	204,419			$	188,880			$	183,093
Commercial real estate	$	1,053,030			$	1,057,800			$	1,047,593			$	1,005,280			$	989,401
Commercial and industrial	$	248,525			$	228,045			$	219,757			$	212,975			$	169,401
Correspondent banks	$	112,510			$	100,182			$	114,945			$	94,640			$	85,409
Consumer and other	$	194,644			$	194,325			$	191,930			$	173,096			$	167,845
Asset quality data:
Allowance for credit losses to total loans		1.19	%			1.18	%			1.18	%			1.16	%			1.18	%
Allowance for credit losses to non-performing loans		2,933	%			4,705	%			4,505	%			4,070	%			3,871	%
Total non-performing loans(5)	$	758			$	456			$	468			$	479			$	486
Non-performing loans to total loans		0.04	%			0.03	%			0.03	%			0.03	%			0.03	%
Non-performing assets to total assets(5)		0.03	%			0.02	%			0.02	%			0.02	%			0.02	%
Net charge-offs (recoveries of) to average loans (2)		(0.00	)%			(0.00	)%			(0.00	)%			(0.00	)%			0.01	%
Net charge-offs (recovery) of credit losses	$	(2	)		$	(7	)		$	(3	)		$	(5	)		$	29
Interest rates and yields:(2)
Loans		6.16	%			6.01	%			5.79	%			5.55	%			5.33	%
Investment securities		2.80	%			2.69	%			2.46	%			2.52	%			2.26	%
Total interest-earning assets		5.54	%			5.34	%			5.16	%			4.89	%			4.68	%
Deposits		2.64	%			2.76	%			2.53	%			2.39	%			1.99	%
FHLB advances and other borrowings		4.03	%			4.10	%			4.04	%			3.19	%			3.42	%
Total interest-bearing liabilities		3.76	%			3.86	%			3.66	%			3.41	%			2.97	%
Other information:
Full-time equivalent employees		197				199				196				194				198
(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 other real estate owned (OREO) recorded.

USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
	Three Months Ended June 30,
	2024									2023
	Average Balance			Interest			Yield/Rate (1)			Average Balance			Interest			Yield/Rate (1)
Assets
Interest-earning assets:
Loans (2)	$	1,828,487		$	28,017		6.16	%		$	1,569,266		$	20,847		5.33	%
Investment securities (3)		440,559			3,069		2.80	%			422,544			2,382		2.26	%
Other interest-earning assets		100,371			1,531		6.13	%			87,536			1,051		4.82	%
Total interest-earning assets		2,369,417			32,617		5.54	%			2,079,346			24,280		4.68	%
Non-interest-earning assets		109,805									104,196
Total assets	$	2,479,222								$	2,183,542
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing checking deposits	$	56,369			391		2.79	%		$	53,561			200		1.50	%
Saving and money market deposits		1,101,272			10,071		3.68	%			940,095			6,968		2.97	%
Time deposits		315,872			3,222		4.10	%			277,001			2,145		3.11	%
Total interest-bearing deposits		1,473,513			13,684		3.74	%			1,270,657			9,313		2.94	%
FHLB advances and other borrowings		162,000			1,622		4.03	%			93,075			794		3.42	%
Total interest-bearing liabilities		1,635,513			15,306		3.76	%			1,363,732			10,107		2.97	%
Non-interest-bearing demand deposits		610,370									601,778
Other non-interest-bearing liabilities		35,584									33,794
Total liabilities		2,281,467									1,999,304
Stockholders' equity		197,755									184,238
Total liabilities and stockholders' equity	$	2,479,222								$	2,183,542
Net interest income				$	17,311								$	14,173
Net interest spread (4)							1.78	%								1.71	%
Net interest margin (5)							2.94	%								2.73	%
(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.

USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
	As of or For the Three Months Ended
	6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
Pre-tax pre-provision ("PTPP") income:(1)
Net income	$	6,209			$	4,612			$	2,721			$	3,819			$	4,196
Plus: Provision for income taxes		1,967				1,426				787				1,250				1,333
Plus: Provision for credit losses		786				410				1,475				653				38
PTPP income	$	8,962			$	6,448			$	4,983			$	5,722			$	5,567
PTPP return on average assets:(1)
PTPP income	$	8,962			$	6,448			$	4,983			$	5,722			$	5,567
Average assets	$	2,479,222			$	2,436,103			$	2,268,811			$	2,250,258			$	2,183,542
PTPP return on average assets (2)		1.45	%			1.06	%			0.87	%			1.01	%			1.02	%
Operating net income:(1)
Net income	$	6,209			$	4,612			$	2,721			$	3,819			$	4,196
Less: Net gains (losses) on sale of securities		14				-				(883	)			(955	)			-
Less: Tax effect on sale of securities		(4	)			-				224				242				-
Operating net income	$	6,199			$	4,612			$	3,380			$	4,532			$	4,196
Operating PTPP income:(1)
PTPP income	$	8,962			$	6,448			$	4,983			$	5,722			$	5,567
Less: Net gains (losses) on sale of securities		14				-				(883	)			(955	)			-
Operating PTPP income	$	8,948			$	6,448			$	5,866			$	6,677			$	5,567
Operating PTPP return on average assets:(1)
Operating PTPP income	$	8,948			$	6,448			$	5,866			$	6,677			$	5,567
Average assets	$	2,479,222			$	2,436,103			$	2,268,811			$	2,250,258			$	2,183,542
Operating PTPP return on average assets (2)		1.45	%			1.06	%			1.03	%			1.18	%			1.02	%
Operating return on average assets:(1)
Operating net income	$	6,199			$	4,612			$	3,380			$	4,532			$	4,196
Average assets	$	2,479,222			$	2,436,103			$	2,268,811			$	2,250,258			$	2,183,542
Operating return on average assets (2)		1.01	%			0.76	%			0.59	%			0.80	%			0.77	%
Operating return on average equity:(1)
Operating net income	$	6,199			$	4,612			$	3,380			$	4,532			$	4,196
Average equity	$	197,755			$	193,092			$	183,629			$	184,901			$	184,238
Operating return on average equity (2)		12.61	%			9.61	%			7.30	%			9.72	%			9.13	%
Operating Revenue:(1)
Net interest income	$	17,311			$	15,158			$	14,376			$	14,022			$	14,173
Non-interest income		3,211				2,464				1,326				2,161				1,846
Less: Net gains (losses) on sale of securities		14				-				(883	)			(955	)			-
Operating revenue	$	20,508			$	17,622			$	16,585			$	17,138			$	16,019
Operating Efficiency Ratio:(1)
Total non-interest expense	$	11,560			$	11,174			$	10,719			$	10,461			$	10,452
Operating revenue	$	20,508			$	17,622			$	16,585			$	17,138			$	16,019
Operating efficiency ratio		56.37	%			63.41	%			64.63	%			61.04	%			65.25	%
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) 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
	6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
Tangible book value per common share (at period-end):(1)
Total stockholders' equity	$	201,020			$	195,011			$	191,968			$	182,884			$	183,685
Less: Intangible assets		-				-				-				-				-
Tangible stockholders' equity	$	201,020			$	195,011			$	191,968			$	182,884			$	183,685
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding		19,630,632				19,650,463				19,575,435				19,542,290				19,544,777
Tangible book value per common share(2)	$	10.24			$	9.92			$	9.81			$	9.36			$	9.40
Operating diluted net income per common share:(1)
Operating net income	$	6,199			$	4,612			$	3,380			$	4,532			$	4,196
Total weighted average diluted shares of common stock		19,717,167				19,698,258				19,573,350				19,611,897				19,639,682
Operating diluted net income per common share:	$	0.31			$	0.23			$	0.17			$	0.23			$	0.21
Tangible Common Equity/Tangible Assets(1)
Tangible stockholders' equity	$	201,020			$	195,011			$	191,968			$	182,884			$	183,685
Tangible total assets(3)	$	2,458,270			$	2,489,142			$	2,339,093			$	2,244,602			$	2,225,914
Tangible Common Equity/Tangible Assets		8.18	%			7.83	%			8.21	%			8.15	%			8.25	%
(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 GAAP.

FAQ

What was USCB Financial Holdings' EPS for Q2 2024?

USCB Financial Holdings reported a record fully diluted EPS of $0.31 for Q2 2024, up from $0.21 in the same period last year.

How much did USCB's net income grow in Q2 2024 compared to Q2 2023?

USCB's net income grew from $4.2 million in Q2 2023 to $6.2 million in Q2 2024, representing a 47.6% increase.

What was USCB's efficiency ratio in Q2 2024?

USCB's efficiency ratio improved to 56.33% in Q2 2024, compared to 65.25% in Q2 2023.

How much did USCB's total loans increase year-over-year?

USCB's total loans increased by $273.3 million or 17.1%, reaching $1.9 billion as of June 30, 2024.

What dividend did USCB Financial Holdings declare for Q2 2024?

USCB Financial Holdings declared a cash dividend of $0.05 per share of Class A common stock, payable on September 5, 2024.