EX-99.1 2 exhibit991.htm exhibit991
exhibit991p1i0
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
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.