1
Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Second Quarter 2022 Results
MIAMI – July 28, 2022 – 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.
2
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;
3
•
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
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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.
5
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.
6
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.
7
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.
8
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.
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
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.
