Bay Street News

USCB Financial Holdings, Inc. Reports Diluted EPS of $0.23 for Q1 2024 and Announces Adoption of New 500,000 Share Repurchase Program

MIAMI, April 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 $4.6 million or $0.23 per diluted share for the three months ended March 31, 2024, compared with net income of $5.8 million or $0.29 per diluted share for the same period in 2023.

“We are pleased to report a robust start to the year, marked by a strong increase in deposits of $165.7 million from the close of 2023. This achievement reflects our diligent execution of strategic plans emphasizing organic growth, including business and retail banking initiatives to deepen existing relationships, new production hires, and innovative deposit-aggregating business verticals,” said Luis de la Aguilera, Chairman, President, and CEO. The growth in deposits continues to bolster our capacity for safe and sound lending activities, delivering accretive quarter-over-quarter improvement in average loan coupon rates which contributes to interest income.”

“Last month, we initiated a dividend program starting with a rate of $0.05 per share, underscoring our commitment to delivering shareholder value,” affirmed de la Aguilera. “Looking ahead to the coming year and evaluating our thriving Florida economy, we anticipate diversified sustainable growth in both loans and deposits.”

Unless otherwise stated, all percentage comparisons in the bullet points below are calculated for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023 and annualized where appropriate.

Profitability

Balance Sheet

Asset Quality

Non-interest Income and Non-interest Expense

Capital

Conference Call and Webcast

The Company will host a conference call on Friday, April 26, 2024, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended March 31, 2024. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.

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 An archived version of the webcast will be available in the same location shortly after the live call has ended.

About USCB Financial Holdings, Inc.

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

Forward-Looking Statements

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

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

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 March 31,
  2024   2023  
Interest income:          
Loans, including fees $ 26,643   $ 19,711  
Investment securities   2,811     2,286  
Interest-bearing deposits in financial institutions   1,433     382  
Total interest income   30,887     22,379  
Interest expense:          
Interest-bearing checking   369     43  
Savings and money market accounts   10,394     4,785  
Time deposits   3,294     1,057  
FHLB advances and other borrowings   1,672     497  
Total interest expense   15,729     6,382  
Net interest income before provision for credit losses   15,158     15,997  
Provision for credit losses   410     201  
Net interest income after provision for credit losses   14,748     15,796  
Non-interest income:          
Service fees   1,651     1,205  
Gain (loss) on sale of securities available for sale, net       (21 )
Gain on sale of loans held for sale, net   67     347  
Other non-interest income   746     539  
Total non-interest income   2,464     2,070  
Non-interest expense:          
Salaries and employee benefits   6,310     6,377  
Occupancy   1,314     1,299  
Regulatory assessments and fees   433     224  
Consulting and legal fees   592     358  
Network and information technology services   507     478  
Other operating expense   2,018     1,440  
Total non-interest expense   11,174     10,176  
Net income before income tax expense   6,038     7,690  
Income tax expense   1,426     1,881  
Net income $ 4,612   $ 5,809  
Per share information:          
Net income per common share, basic $ 0.23   $ 0.29  
Net income per common share, diluted $ 0.23   $ 0.29  
Cash dividends declared $ 0.05   $  
Weighted average shares outstanding:          
Common shares, basic   19,633,330     19,855,409  
Common shares, diluted   19,698,258     19,940,606  
           
 
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
                             
  As of or For the Three Months Ended
  3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023
Income statement data:                            
Net interest income $ 15,158     $ 14,376     $ 14,022     $ 14,173     $ 15,997  
Provision for credit losses   410       1,475       653       38       201  
Net interest income after provision for credit losses   14,748       12,901       13,369       14,135       15,796  
Service fees   1,651       1,348       1,329       1,173       1,205  
Gain (loss) on sale of securities available for sale, net         (883 )     (955 )           (21 )
Gain on sale of loans held for sale, net   67       105       255       94       347  
Other income   746       756       1,532       579       539  
Total non-interest income   2,464       1,326       2,161       1,846       2,070  
Salaries and employee benefits   6,310       6,104       6,066       5,882       6,377  
Occupancy   1,314       1,262       1,350       1,319       1,299  
Regulatory assessments and fees   433       412       365       452       224  
Consulting and legal fees   592       642       513       386       358  
Network and information technology services   507       552       481       505       478  
Other operating expense   2,018       1,747       1,686       1,908       1,440  
Total non-interest expense   11,174       10,719       10,461       10,452       10,176  
Net income before income tax expense   6,038       3,508       5,069       5,529       7,690  
Income tax expense   1,426       787       1,250       1,333       1,881  
Net income $ 4,612     $ 2,721     $ 3,819     $ 4,196     $ 5,809  
Per share information:                            
Net income per common share, basic $ 0.23     $ 0.14     $ 0.20     $ 0.21     $ 0.29  
Net income per common share, diluted $ 0.23     $ 0.14     $ 0.19     $ 0.21     $ 0.29  
Cash dividends declared $ 0.05     $     $     $     $  
Balance sheet data (at period-end):                            
Cash and cash equivalents $ 126,546     $ 41,062     $ 33,435     $ 87,280     $ 63,251  
Securities available-for-sale $ 259,992     $ 229,329     $ 218,609     $ 218,442     $ 229,409  
Securities held-to-maturity $ 173,038     $ 174,974     $ 197,311     $ 220,956     $ 186,428  
Total securities $ 433,030     $ 404,303     $ 415,920     $ 439,398     $ 415,837  
Loans held for investment (1) $ 1,821,196     $ 1,780,827     $ 1,676,520     $ 1,595,959     $ 1,580,394  
Allowance for credit losses $ (21,454 )   $ (21,084 )   $ (19,493 )   $ (18,815 )   $ (18,887 )
Total assets $ 2,489,142     $ 2,339,093     $ 2,244,602     $ 2,225,914     $ 2,163,821  
Non-interest-bearing deposits $ 576,626     $ 552,762     $ 573,546     $ 572,360     $ 633,606  
Interest-bearing deposits $ 1,526,168     $ 1,384,377     $ 1,347,376     $ 1,348,941     $ 1,196,856  
Total deposits $ 2,102,794     $ 1,937,139     $ 1,920,922     $ 1,921,301     $ 1,830,462  
FHLB advances and other borrowings $ 162,000     $ 183,000     $ 102,000     $ 87,000     $ 120,000  
Total liabilities $ 2,294,131     $ 2,147,125     $ 2,061,718     $ 2,042,229     $ 1,979,963  
Total stockholders’ equity $ 195,011     $ 191,968     $ 182,884     $ 183,685     $ 183,858  
Capital ratios:(2)                            
Leverage ratio   8.91 %     9.28 %     9.26 %     9.32 %     9.36 %
Common equity tier 1 capital   11.80 %     11.62 %     11.97 %     12.27 %     12.04 %
Tier 1 risk-based capital   11.80 %     11.62 %     11.97 %     12.27 %     12.04 %
Total risk-based capital   12.98 %     12.78 %     13.10 %     13.42 %     13.20 %
                             
(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company’s regulatory capital ratios which are provided for information purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements.
 
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
                             
  As of or For the Three Months Ended
  3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023
Average balance sheet data:                            
Cash and cash equivalents $ 132,266     $ 57,069     $ 90,742     $ 94,313     $ 50,822  
Securities available-for-sale $ 239,896     $ 215,649     $ 222,134     $ 224,913     $ 230,336  
Securities held-to-maturity $ 174,142     $ 181,151     $ 218,694     $ 192,628     $ 187,826  
Total securities $ 414,038     $ 396,800     $ 440,828     $ 417,541     $ 418,162  
Loans held for investment(1) $ 1,781,528     $ 1,698,611     $ 1,610,864     $ 1,569,266     $ 1,547,393  
Total assets $ 2,436,103     $ 2,268,811     $ 2,250,258     $ 2,183,542     $ 2,120,218  
Interest-bearing deposits $ 1,473,831     $ 1,336,470     $ 1,353,516     $ 1,270,657     $ 1,179,878  
Non-interest-bearing deposits $ 574,760     $ 577,133     $ 587,917     $ 601,778     $ 664,369  
Total deposits $ 2,048,591     $ 1,913,603     $ 1,941,433     $ 1,872,435     $ 1,844,247  
FHLB advances and other borrowings $ 164,187     $ 139,000     $ 85,326     $ 93,075     $ 61,600  
Total liabilities $ 2,243,011     $ 2,085,182     $ 2,065,357     $ 1,999,304     $ 1,936,847  
Total stockholders’ equity $ 193,092     $ 183,629     $ 184,901     $ 184,238     $ 183,371  
Performance ratios:                            
Return on average assets (2)   0.76 %     0.48 %     0.67 %     0.77 %     1.11 %
Return on average equity (2)   9.61 %     5.88 %     8.19 %     9.13 %     12.85 %
Net interest margin (2)   2.62 %     2.65 %     2.60 %     2.73 %     3.22 %
Non-interest income (loss) to average assets (2)   0.41 %     0.23 %     0.38 %     0.34 %     0.40 %
Efficiency ratio (3)   63.41 %     68.27 %     64.64 %     65.25 %     56.32 %
Loans by type (at period end): (4)                            
Residential real estate $ 237,906     $ 204,419     $ 188,880     $ 183,093     $ 184,427  
Commercial real estate $ 1,057,800     $ 1,047,593     $ 1,005,280     $ 989,401     $ 987,757  
Commercial and industrial $ 228,045     $ 219,757     $ 212,975     $ 169,401     $ 160,947  
Foreign banks $ 100,182     $ 114,945     $ 94,640     $ 85,409     $ 97,405  
Consumer and other $ 194,325     $ 191,930     $ 173,096     $ 167,845     $ 149,410  
Asset quality data:                            
Allowance for credit losses to total loans   1.18 %     1.18 %     1.16 %     1.18 %     1.20 %
Allowance for credit losses to non-performing loans   4,705 %     4,505 %     4,070 %     3,871 %     3,886 %
Total non-performing loans(5) $ 456     $ 468     $ 479     $ 486     $ 486  
Non-performing loans to total loans   0.03 %     0.03 %     0.03 %     0.03 %     0.03 %
Non-performing assets to total assets(5)   0.02 %     0.02 %     0.02 %     0.02 %     0.02 %
Net charge-offs (recoveries of) to average loans (2)   (0.00 )%     (0.00 )%     (0.00 )%     0.01 %     (0.01 )%
Net charge-offs (recovery) of credit losses $ (7 )   $ (3 )   $ (5 )   $ 29     $ (49 )
Interest rates and yields:(2)                            
Loans   6.01 %     5.79 %     5.55 %     5.33 %     5.17 %
Investment securities   2.69 %     2.46 %     2.52 %     2.26 %     2.20 %
Total interest-earning assets   5.34 %     5.16 %     4.89 %     4.68 %     4.51 %
Deposits   2.76 %     2.53 %     2.39 %     1.99 %     1.29 %
FHLB advances and other borrowings   4.10 %     4.04 %     3.19 %     3.42 %     3.27 %
Total interest-bearing liabilities   3.86 %     3.66 %     3.41 %     2.97 %     2.08 %
Other information:                            
Full-time equivalent employees   199       196       194       198       196  
                             
(1) Loan amounts include deferred fees/costs.
(2) Annualized.
(3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
(4) Loan amounts exclude deferred fees/costs.
(5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there were no impaired investments or other real estate owned (OREO) recorded.
USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
                               
  Three Months Ended March 31,
  2024     2023  
  Average
Balance
  Interest   Yield/Rate (1)   Average
Balance
  Interest   Yield/Rate (1)
Assets                              
Interest-earning assets:                              
Loans (2) $ 1,781,528   $ 26,643   6.01 %   $ 1,547,393   $ 19,711   5.17 %
Investment securities (3)   419,989     2,811   2.69 %     421,717     2,286   2.20 %
Other interest-earning assets   125,244     1,433   4.60 %     43,084     382   3.60 %
Total interest-earning assets   2,326,761     30,887   5.34 %     2,012,194     22,379   4.51 %
Non-interest-earning assets   109,342               108,024          
Total assets $ 2,436,103             $ 2,120,218          
Liabilities and stockholders’ equity                              
Interest-bearing liabilities:                              
Interest-bearing checking $ 53,344     369   2.78 %   $ 58,087     43   0.30 %
Saving and money market deposits   1,097,575     10,394   3.81 %     897,061     4,785   2.16 %
Time deposits   322,912     3,294   4.10 %     224,730     1,057   1.91 %
Total interest-bearing deposits   1,473,831     14,057   3.84 %     1,179,878     5,885   2.02 %
FHLB advances and other borrowings   164,187     1,672   4.10 %     61,600     497   3.27 %
Total interest-bearing liabilities   1,638,018     15,729   3.86 %     1,241,478     6,382   2.08 %
Non-interest-bearing demand deposits   574,760               664,369          
Other non-interest-bearing liabilities   30,233               31,000          
Total liabilities   2,243,011               1,936,847          
Stockholders’ equity   193,092               183,371          
Total liabilities and stockholders’ equity $ 2,436,103             $ 2,120,218          
Net interest income       $ 15,158             $ 15,997    
Net interest spread (4)             1.48 %               2.43 %
Net interest margin (5)             2.62 %               3.22 %
                               
(1) Annualized.
(2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
(3) At fair value except for securities held to maturity. This amount includes FHLB stock.
(4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities.
(5) Net interest margin is the ratio of net interest income to total interest-earning assets.
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
                             
  As of or For the Three Months Ended
  3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023
Pre-tax pre-provision (“PTPP”) income:(1)                            
Net income $ 4,612     $ 2,721     $ 3,819     $ 4,196     $ 5,809  
Plus: Provision for income taxes   1,426       787       1,250       1,333       1,881  
Plus: Provision for credit losses   410       1,475       653       38       201  
PTPP income $ 6,448     $ 4,983     $ 5,722     $ 5,567     $ 7,891  
                             
PTPP return on average assets:(1)                            
PTPP income $ 6,448     $ 4,983     $ 5,722     $ 5,567     $ 7,891  
Average assets $ 2,436,103     $ 2,268,811     $ 2,250,258     $ 2,183,542     $ 2,120,218  
PTPP return on average assets (2)   1.06 %     0.87 %     1.01 %     1.02 %     1.51 %
                             
Operating net income:(1)                            
Net income $ 4,612     $ 2,721     $ 3,819     $ 4,196     $ 5,809  
Less: Net gains (losses) on sale of securities         (883 )     (955 )           (21 )
Less: Tax effect on sale of securities         224       242             5  
Operating net income $ 4,612     $ 3,380     $ 4,532     $ 4,196     $ 5,825  
                             
Operating PTPP income:(1)                            
PTPP income $ 6,448     $ 4,983     $ 5,722     $ 5,567     $ 7,891  
Less: Net gains (losses) on sale of securities         (883 )     (955 )           (21 )
Operating PTPP income $ 6,448     $ 5,866     $ 6,677     $ 5,567     $ 7,912  
                             
Operating PTPP return on average assets:(1)                            
Operating PTPP income $ 6,448     $ 5,866     $ 6,677     $ 5,567     $ 7,912  
Average assets $ 2,436,103     $ 2,268,811     $ 2,250,258     $ 2,183,542     $ 2,120,218  
Operating PTPP return on average assets (2)   1.06 %     1.03 %     1.18 %     1.02 %     1.51 %
                             
Operating return on average assets:(1)                            
Operating net income $ 4,612     $ 3,380     $ 4,532     $ 4,196     $ 5,825  
Average assets $ 2,436,103     $ 2,268,811     $ 2,250,258     $ 2,183,542     $ 2,120,218  
Operating return on average assets (2)   0.76 %     0.59 %     0.80 %     0.77 %     1.11 %
                             
Operating return on average equity:(1)                            
Operating net income $ 4,612     $ 3,380     $ 4,532     $ 4,196     $ 5,825  
Average equity $ 193,092     $ 183,629     $ 184,901     $ 184,238     $ 183,371  
Operating return on average equity (2)   9.61 %     7.30 %     9.72 %     9.13 %     12.88 %
                             
Operating Revenue:(1)                            
Net interest income $ 15,158     $ 14,376     $ 14,022     $ 14,173     $ 15,997  
Non-interest income   2,464       1,326       2,161       1,846       2,070  
Less: Net gains (losses) on sale of securities         (883 )     (955 )           (21 )
Operating revenue $ 17,622     $ 16,585     $ 17,138     $ 16,019     $ 18,088  
                             
Operating Efficiency Ratio:(1)                            
Total non-interest expense $ 11,174     $ 10,719     $ 10,461     $ 10,452     $ 10,176  
Operating revenue $ 17,622     $ 16,585     $ 17,138     $ 16,019     $ 18,088  
Operating efficiency ratio   63.41 %     64.63 %     61.04 %     65.25 %     56.26 %
                             
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Annualized.
 
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
                             
  As of or For the Three Months Ended
  3/31/2024   12/31/2023   9/30/2023   6/30/2023   3/31/2023
Tangible book value per common share (at period-end):(1)                            
Total stockholders’ equity $ 195,011     $ 191,968     $ 182,884     $ 183,685     $ 183,858  
Less: Intangible assets                            
Tangible stockholders’ equity $ 195,011     $ 191,968     $ 182,884     $ 183,685     $ 183,858  
Total shares issued and outstanding (at period-end):                            
Total common shares issued and outstanding   19,650,463       19,575,435       19,542,290       19,544,777       19,622,380  
Tangible book value per common share(2) $ 9.92     $ 9.81     $ 9.36     $ 9.40     $ 9.37  
                             
Operating diluted net income per common share:(1)                            
Operating net income $ 4,612     $ 3,380     $ 4,532     $ 4,196     $ 5,825  
Total weighted average diluted shares of common stock   19,698,258       19,573,350       19,611,897       19,639,682       19,940,606  
Operating diluted net income per common share: $ 0.23     $ 0.17     $ 0.23     $ 0.21     $ 0.29  
                             
Tangible Common Equity/Tangible Assets(1)                            
Tangible stockholders’ equity $ 195,011     $ 191,968     $ 182,884     $ 183,685     $ 183,858  
Tangible total assets(3) $ 2,489,142     $ 2,339,093     $ 2,244,602     $ 2,225,914     $ 2,163,821  
Tangible Common Equity/Tangible Assets   7.83 %     8.21 %     8.15 %     8.25 %     8.50 %
                             
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.
(3) Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAAP.
 


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