USCB Financial Holdings, Inc. Reports EPS of $0.22, Operating EPS of $0.29 for Q4 2022

January 26, 2023

MIAMI, Jan. 26, 2023 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $4.4 million or $0.22 per diluted share for the three months ended December 31, 2022, compared with net income of $5.7 million or $0.30 per diluted share, for the same period in 2021.

Near quarter end, the Bank executed a portfolio restructuring strategy which resulted in a sale of $17.0 million of its lower-yielding available-for-sale securities for an after-tax loss of $1.5 million or $0.07 EPS in the quarter. Proceeds from the sale will be reinvested in securities and loans currently yielding, on average, 430-460 basis points higher than the securities that were sold. The loss on sale of securities is expected to have a nominal impact on tangible book value, as such loss was previously reflected in capital through accumulated other comprehensive income (AOCI). Additionally, the reinvestment from the sale proceeds into higher yielding earning assets will have a $0.03 EPS positive impact on 2023 earnings.

Excluding gain (loss) from the sale of securities, Non-GAAP Operating net income was $5.9 million or $0.29 per diluted share for the fourth quarter ended December 31, 2022, compared to $5.6 million or $0.30 per diluted share, for the same period in 2021.

"Despite a challenging operating environment, 2022 afforded us extraordinary opportunities for growth and profitability. While a soft landing for the economy is expected in 2023, we are taking a prudent approach with our balance sheet by limiting growth in certain assets, maintaining appropriate capital and reserve levels, managing liquidity, and preparing for a range of economic scenarios,” 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 December 31, 2022 compared to the quarter ended December 31, 2021 and annualized where appropriate.

Profitability

  • Annualized return on average assets for the quarter ended December 31, 2022 was 0.86% compared to 1.23% for the fourth quarter of 2021. Non-GAAP Operating return on assets for the quarter ended December 31, 2022 was 1.14% compared to 1.22% for the fourth quarter of 2021.

  • Annualized return on average stockholders’ equity for the quarter ended December 31, 2022 was 9.91% compared to 11.08% for the fourth quarter of 2021. Non-GAAP Operating return on equity for the quarter ended December 31, 2022 was 13.23% compared to 11.03% for the fourth quarter of 2021.

  • The efficiency ratio for the quarter ended December 31, 2022 was 59.81% compared to 55.74% for the fourth quarter of 2021. Non-GAAP Operating efficiency ratio for the quarter ended December 31, 2022 was 53.46% compared to 55.85% for the fourth quarter of 2021.

  • Net interest margin increased to 3.45% for the quarter ended December 31, 2022 compared to 3.19% for the fourth quarter of 2021.

  • Net interest income before provision for credit losses was $16.9 million for the quarter ended December 31, 2022, an increase of $2.8 million or 19.8% compared to the fourth quarter of 2021.

Balance Sheet

  • Total assets were $2.1 billion at December 31, 2022, representing an increase of $231.9 million or 12.5% from December 31, 2021.

  • Total loans were $1.5 billion at December 31, 2022, representing an increase of $317.3 million or 26.7% from December 31, 2021.

  • Total deposits were $1.8 billion at December 31, 2022, representing an increase of $238.9 million or 15.0% from December 31, 2021.

  • Total stockholders’ equity was $182.4 million at December 31, 2022, representing a decrease of $21.5 million or 10.5% from December 31, 2021. Total stockholders’ equity includes unrealized security losses of $44.8 million at December 31, 2022 compared to unrealized security loss of $2.5 million at December 31, 2021.

Asset Quality

  • The allowance for credit losses increased by $2.4 million to $17.5 million at December 31, 2022 from $15.1 million at December 31, 2021.

  • The allowance for credit losses represented 1.16% of total loans at December 31, 2022 compared to 1.27% at December 31, 2021.

  • Non-performing loans to total loans was 0.00% at December 31, 2022 compared to 0.10% at December 31, 2021.

Non-interest Income and Non-interest Expense

  • Non-interest income was negative $0.1 million for the three months ended December 31, 2022 compared to $2.6 million for the same period in 2021. Non-interest income was negative in the fourth quarter of 2022 due to a $2.0 million loss on the sale of securities.

  • Non-interest expense was $10.0 million for the three months ended December 31, 2022, an increase of $0.7 million or 7.5% compared to the same period in 2021.

Capital

  • As of December 31, 2022, total risk-based capital ratios for the Company and the Bank were 13.65% and 13.58%, respectively.

  • Tangible book value per common share of $9.12 was negatively affected by $2.24 due to after tax unrealized security losses of $44.8 million at December 31, 2022. At December 31, 2021, tangible book value of $10.20 was negatively affected by $0.13 due to $2.5 million after tax unrealized security losses.

Conference Call and Webcast

The Company will host a conference call on Friday, January 27, 2023, at 9:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended December 31, 2022. To access the conference call, dial (866) 652-5200 (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 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 and the 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;
  • 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 impact 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;
  • 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, 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 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.

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 December 31, Twelve Months Ended December 31,
 2022 2021 2022 2021
Interest income:            
Loans, including fees$17,836  $12,786  $60,825  $48,730 
Investment securities 2,306   2,216   9,346   7,886 
Interest-bearing deposits in financial institutions 455   29   929   106 
Total interest income 20,597   15,031   71,100   56,722 
Interest expense:            
Interest-bearing checking 34   14   86   59 
Savings and money market accounts 2,866   510   5,173   2,082 
Time deposits 616   292   1,509   1,531 
FHLB advances and other borrowings 215   139   671   554 
Total interest expense 3,731   955   7,439   4,226 
Net interest income before provision for credit losses 16,866   14,076   63,661   52,496 
Provision for credit losses 880   -   2,495   (160)
Net interest income after provision for credit losses 15,986   14,076   61,166   52,656 
Non-interest income:            
Service fees 1,093   961   4,010   3,609 
Gain (loss) on sale of securities available for sale, net (1,989)  35   (2,529)  214 
Gain on sale of loans held for sale, net 205   107   891   1,626 
Gain on sale of other assets -   983   -   983 
Loan settlement -   -   161   2,500 
Other non-interest income 568   558   2,695   1,766 
Total non-interest income (123)  2,644   5,228   10,698 
Non-interest expense:            
Salaries and employee benefits 6,080   5,634   23,943   21,438 
Occupancy 1,256   1,267   5,058   5,257 
Regulatory assessments and fees 222   93   930   783 
Consulting and legal fees 371   539   1,890   1,454 
Network and information technology services 483   268   1,806   1,466 
Other operating expense 1,602   1,518   5,682   5,279 
Total non-interest expense 10,014   9,319   39,309   35,677 
Net income before income tax expense 5,849   7,401   27,085   27,677 
Income tax expense 1,415   1,751   6,944   6,600 
Net income 4,434   5,650   20,141   21,077 
Preferred stock dividend -   -   -   2,077 
Exchange and redemption of preferred shares -   -   -   89,585 
Net income (loss) available to common stockholders$4,434  $5,650  $20,141  $(70,585)
Per share information:             
Net income (loss) per common share, basic$0.22  $0.30  $1.01  $(6.72)
Net income (loss) per common share, diluted$0.22  $0.30  $1.00  $(6.72)
Weighted average shares outstanding:            
Common share, basic 20,000,753   18,913,914   19,999,323   10,507,530 
Common share, diluted 20,172,438   19,023,686   20,176,838   10,507,530 
             
 


USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
               
 As of or For the Three Months Ended
 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021
Income statement data:              
Net interest income$16,866  $16,774  $15,642  $14,379  $14,076 
Provision for credit losses 880   910   705   -   - 
Net interest income after provision for credit losses 15,986   15,864   14,937   14,379   14,076 
Service fees 1,093   934   1,083   900   961 
Gain (loss) on sale of securities available for sale, net (1,989)  (558)  (3)  21   35 
Gain on sale of loans held for sale, net 205   330   22   334   107 
Gain on sale of other assets -   -   -   -   983 
Loan settlement -   -   -   161   - 
Other income 568   1,083   515   529   558 
Total non-interest income (123)  1,789   1,617   1,945   2,644 
Salaries and employee benefits 6,080   6,075   5,913   5,875   5,634 
Occupancy 1,256   1,281   1,251   1,270   1,267 
Regulatory assessments and fees 222   269   226   213   93 
Consulting and legal fees 371   604   398   517   539 
Network and information technology services 483   488   448   387   268 
Other operating expense 1,602   1,415   1,315   1,350   1,518 
Total non-interest expense 10,014   10,132   9,551   9,612   9,319 
Net income before income tax expense 5,849   7,521   7,003   6,712   7,401 
Income tax expense 1,415   1,963   1,708   1,858   1,751 
Net income 4,434   5,558   5,295   4,854   5,650 
Preferred stock dividend -   -   -   -   - 
Net income available to common stockholders$4,434  $5,558  $5,295  $4,854  $5,650 
Per share information:              
Net income per common share, basic$0.22  $0.28  $0.26  $0.24  $0.30 
Net income per common share, diluted$0.22  $0.28  $0.26  $0.24  $0.30 
Balance sheet data (at period-end):              
Cash and cash equivalents$54,168  $73,326  $83,272  $94,113  $46,228 
Securities available-for-sale$230,140  $248,571  $339,464  $392,214  $401,542 
Securities held-to-maturity$188,699  $178,865  $116,671  $122,361  $122,658 
Total securities$418,839  $427,436  $456,135  $514,575  $524,200 
Loans held for investment (1)$1,507,338  $1,431,513  $1,372,733  $1,258,388  $1,190,081 
Allowance for credit losses$(17,487) $(16,604) $(15,786) $(15,074) $(15,057)
Total assets$2,085,834  $2,037,453  $2,016,086  $1,967,252  $1,853,939 
Non-interest-bearing deposits$629,776  $662,808  $653,708  $656,622  $605,425 
Interest-bearing deposits$1,199,505  $1,133,834  $1,085,012  $1,056,672  $984,954 
Total deposits$1,829,281  $1,796,642  $1,738,720  $1,713,294  $1,590,379 
FHLB advances and other borrowings$46,000  $26,000  $66,000  $36,000  $36,000 
Total liabilities$1,903,406  $1,860,036  $1,836,018  $1,775,213  $1,650,042 
Total stockholders' equity$182,428  $177,417  $180,068  $192,039  $203,897 
Capital ratios:              
Leverage ratio 9.61%  9.48%  9.43%  9.47%  9.55%
Common equity tier 1 capital 12.53%  12.56%  12.65%  13.35%  13.70%
Tier 1 risk-based capital 12.53%  12.56%  12.65%  13.35%  13.70%
Total risk-based capital 13.65%  13.65%  13.74%  14.49%  14.92%
               
(1) Loan amounts include deferred fees/costs.
 


USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
               
 As of or For the Three Months Ended
 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021
Average balance sheet data:              
Cash and cash equivalents$61,892  $77,887  $80,254  $99,911  $87,819 
Securities available-for-sale$242,144  $331,206  $370,933  $385,748  $374,589 
Securities held-to-maturity$184,459  $116,733  $120,130  $122,381  $114,108 
Total securities$426,603  $447,939  $491,063  $508,129  $488,697 
Loans held for investment(1)$1,456,780  $1,398,761  $1,296,476  $1,211,432  $1,158,755 
Total assets$2,051,867  $2,026,791  $1,968,381  $1,913,484  $1,828,037 
Interest-bearing deposits$1,150,049  $1,107,129  $1,071,709  $1,023,844  $958,241 
Non-interest-bearing deposits$653,820  $655,853  $644,975  $626,400  $603,735 
Total deposits$1,803,869  $1,762,982  $1,716,684  $1,650,244  $1,561,976 
FHLB advances and other borrowings$37,500  $43,935  $36,330  $36,011  $36,000 
Total liabilities$1,874,311  $1,841,503  $1,781,784  $1,711,624  $1,625,675 
Total stockholders' equity$177,556  $185,288  $186,597  $201,860  $202,362 
Performance ratios:              
Return on average assets (2) 0.86%  1.09%  1.08%  1.03%  1.23%
Return on average equity (2) 9.91%  11.90%  11.38%  9.75%  11.08%
Net interest margin (2) 3.45%  3.47%  3.37%  3.22%  3.19%
Non-interest income to average assets (2) (0.02)%  0.35%  0.33%  0.41%  0.57%
Efficiency ratio (3) 59.81%  54.58%  55.34%  58.88%  55.74%
Loans by type (at period end): (4)              
Residential real estate$185,636  $186,551  $203,662  $204,317  $201,359 
Commercial real estate$970,410  $928,531  $843,445  $782,072  $704,988 
Commercial and industrial$126,984  $121,145  $131,271  $134,832  $146,592 
Foreign banks$93,769  $94,450  $84,770  $63,985  $59,491 
Consumer and other$130,429  $100,845  $109,250  $73,765  $79,229 
Asset quality data:              
Allowance for credit losses to total loans 1.16%  1.16%  1.15%  1.20%  1.27%
Allowance for credit losses to non-performing loans -%  -%  -%  -%  1,265%
Non-accrual loans less non-accrual TDRs -   -   -   -   1,190 
Non-accrual TDRs -   -   -   -   - 
Loans over 90 days past due and accruing -   -   -   -   - 
Total non-performing loans(5) -   -   -   -   1,190 
Non-performing loans to total loans -%  -%  -%  -%  0.10%
Non-performing assets to total assets -%  -%  -%  -%  0.06%
Net charge-offs (recoveries of) to average loans (2) (0.00)%  0.03%  (0.00)%  (0.01)%  (0.05)%
Net charge-offs (recovery of) credit losses (2)  91   (7)  (17)  (157)
Interest rates and yields:(2)              
Loans 4.86%  4.53%  4.35%  4.35%  4.32%
Investment securities 2.13%  1.94%  2.04%  1.85%  1.81%
Total interest-earning assets 4.21%  3.82%  3.60%  3.43%  3.41%
Deposits 0.77%  0.34%  0.21%  0.20%  0.21%
FHLB advances and other borrowings 2.27%  1.63%  1.53%  1.54%  1.51%
Total interest-bearing liabilities 1.25%  0.59%  0.38%  0.37%  0.38%
Other information:              
Full-time equivalent employees 191   191   192   190   187 
               
(1) Loan amounts include deferred fees/costs.
(2) Annualized.
(3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
(4) Loan amounts exclude deferred fees/costs.
(5) The amounts for total non-performing loans and total non-performing assets are the same for the dates presented since there were no impaired investments or other real estate owned (OREO) recorded.
 


USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
                
 Three Months Ended December 31,
 2022 2021
 Average
Balance
 Interest Yield/Rate (1) Average
Balance
 Interest Yield/Rate (1)
Assets               
Interest-earning assets:               
Loans (2)$1,456,780 $17,836 4.86% $1,158,755 $12,786 4.32%
Investment securities (3) 429,020  2,306 2.13%  490,797  2,216 1.81%
Other interest-earnings assets 53,717  455 3.36%  80,170  29 0.14%
Total interest-earning assets 1,939,517  20,597 4.21%  1,729,722  15,031 3.41%
Non-interest-earning assets 112,350       98,315     
Total assets$2,051,867      $1,828,037     
Liabilities and stockholders' equity               
Interest-bearing liabilities:               
Interest-bearing checking$61,976  34 0.22% $56,558  14 0.10%
Saving and money market deposits 871,269  2,866 1.31%  673,993  510 0.30%
Time deposits 216,804  616 1.13%  227,690  292 0.51%
Total interest-bearing deposits 1,150,049  3,516 1.21%  958,241  816 0.34%
FHLB advances and other borrowings 37,500  215 2.27%  36,000  139 1.51%
Total interest-bearing liabilities 1,187,549  3,731 1.25%  994,241  955 0.38%
Non-interest-bearing demand deposits 653,820       603,735     
Other non-interest-bearing liabilities 32,942       27,699     
Total liabilities 1,874,311       1,625,675     
Stockholders' equity 177,556       202,362     
Total liabilities and stockholders' equity$2,051,867      $1,828,037     
Net interest income   $16,866      $14,076  
Net interest spread (4)      2.96%       3.03%
Net interest margin (5)      3.45%       3.19%
                
(1) Annualized.
(2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
(3) At fair value except for securities held to maturity. This amount includes FHLB stock.
(4) Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities.
(5) Net interest margin is the ratio of net interest income to total interest-earning assets.
 


USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
               
 As of or For the Three Months Ended
 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021
Pre-tax pre-provision ("PTPP") income:              
Net income$4,434  $5,558  $5,295  $4,854  $5,650 
Plus: Provision for income taxes 1,415   1,963   1,708   1,858   1,751 
Plus: Provision for credit losses 880   910   705   -   - 
PTPP income$6,729  $8,431  $7,708  $6,712  $7,401 
               
PTPP return on average assets:              
PTPP income$6,729  $8,431  $7,708  $6,712  $7,401 
Average assets$2,051,867  $2,026,791  $1,968,381  $1,913,484  $1,828,037 
PTPP return on average assets (1) 1.30%  1.65%  1.57%  1.42%  1.61%
               
Operating net income:              
Net income$4,434  $5,558  $5,295  $4,854  $5,650 
Less: Net gains (losses) on sale of securities (1,989)  (558)  (3)  21   35 
Less: Tax effect on sale of securities 504   141   1   (5)  (9)
Operating net income$5,919  $5,975  $5,297  $4,838  $5,624 
               
Operating PTPP income:              
PTPP income$6,729  $8,431  $7,708  $6,712  $7,401 
Less: Net gains (losses) on sale of securities (1,989)  (558)  (3)  21   35 
Operating PTPP income$8,718  $8,989  $7,711  $6,691  $7,366 
               
Operating PTPP return on average assets:              
Operating PTPP income$8,718  $8,989  $7,711  $6,691  $7,366 
Average assets$2,051,867  $2,026,791  $1,968,381  $1,913,484  $1,828,037 
Operating PTPP return on average assets (1) 1.69%  1.76%  1.57%  1.42%  1.60%
               
Operating return on average assets:              
Operating net income$5,919  $5,975  $5,297  $4,838  $5,624 
Average assets$2,051,867  $2,026,791  $1,968,381  $1,913,484  $1,828,037 
Operating return on average assets (1) 1.14%  1.17%  1.08%  1.03%  1.22%
               
Operating return on average equity:              
Operating net income$5,919  $5,975  $5,297  $4,838  $5,624 
Average equity 177,556   185,288   186,597   201,860   202,362 
Operating return on average equity 13.23%  12.79%  11.39%  9.72%  11.03%
               
Operating Revenue:              
Net interest income$16,866  $16,774  $15,642  $14,379  $14,076 
Non-interest income (123)  1,789   1,617   1,945   2,644 
Less: Net gains (losses) on sale of securities (1,989)  (558)  (3)  21   35 
Operating revenue 18,732   19,121   17,262   16,303   16,685 
               
Operating Efficiency Ratio:              
Total non-interest expense$10,014  $10,132  $9,551  $9,612  $9,319 
Operating revenue 18,732   19,121   17,262   16,303   16,685 
Operating efficiency ratio 53.46%  52.99%  55.33%  58.96%  55.85%
               
(1) Annualized.
 


USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
               
 As of or For the Three Months Ended
 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021
Tangible book value per common share (at period-end):(1)              
Total stockholders' equity$182,428  $177,417  $180,068  $192,039  $203,897 
Less: Intangible assets -   -   -   -   - 
Tangible stockholders' equity$182,428  $177,417  $180,068  $192,039  $203,897 
Total shares issued and outstanding (at period-end):              
Common shares 20,000,753   20,000,753   20,000,753   20,000,753   19,991,753 
Total common shares issued and outstanding 20,000,753   20,000,753   20,000,753   20,000,753   19,991,753 
Tangible book value per common share(2)$9.12  $8.87  $9.00  $9.60  $10.20 
               
Operating diluted net income per common share:(1)              
Operational Net Income$5,919  $5,975  $5,297  $4,838  $5,624 
Total weighted average diluted common stock 20,172,438   20,148,208   20,171,261   20,109,783   19,023,686 
Operating diluted net income per common share:$0.29  $0.30  $0.26  $0.24  $0.30 
               
Tangible Common Equity/Tangible Assets              
Tangible stockholders' equity 182,428   177,417   180,068   192,039   203,897 
Tangible Assets 2,085,834   2,037,453   2,016,086   1,967,252   1,853,939 
Tangible Common Equity/Tangible Assets 8.75%  8.71%  8.93%  9.76%  11.00%
               
(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.