Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Fourth Quarter 2021 Results and Announces Share Repurchase Program
MIAMI – January 27, 2022 – USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), reported net income of $5.7 million or $0.30 per diluted share for the three months ended December 31, 2021, compared with net income of $4.2 million or $0.67 and $0.14 per diluted share for Class A and Class B common stock, respectively, for the same period in 2020. Net income for the year ended December 31, 2021, was $21.1 million or $(6.72) per diluted common share compared with net income of $10.8 million or $1.50 and $0.30 per diluted share for Class A and Class B common stock, respectively, for the same period in 2020.
Operating net income per diluted share (non-GAAP) for the year ended December 31, 2021 was $1.81 compared to operating net income per diluted share (non-GAAP) for the same period in 2020 of $1.50 and $0.30 for Class A and Class B common stock, respectively. Operating net income per diluted share (non-GAAP) for the year ended December 31, 2021 excludes the $89.6 million one-time accounting impact of the exchange and redemption of the preferred shares. A reconciliation of non-GAAP measures to GAAP measures appears at the end of this press release.
On December 21, 2021, the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting common stock for Class A voting common stock at a ratio of 5 to 1. On the same day, a total of 6,121,052 shares of Class B common stock was exchanged for 1,224,212 shares of Class A common stock. As of December 31, 2021, the Company’s only class of shares issued and outstanding were Class A common stock.
Effective December 30, 2021, the Company became the parent bank holding company of U.S. Century Bank (the “Bank”). Each share of the Bank was exchanged for one share of the Company, making the Bank a wholly owned subsidiary of the Company. Shares of the Company continue to trade under ticker symbol “USCB” on the Nasdaq Global Market. Due to the reorganization, the Company is subject to periodic filings with the Securities Exchange Commission (“SEC”) instead of the Federal Deposit Insurance Corporation (“FDIC”). As of December 31, 2021, all the business of the Company is conducted by the Bank.
On January 24, 2022, the Board of Directors approved a share repurchase program of up to 750,000 shares of Class A common stock. Under the repurchase program, the Company may purchase shares of Class A common stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means. The repurchase program has no expiration date and may be modified, suspended, or terminated at any time. Repurchases under this program will be funded from the Company’s existing cash and cash equivalents or future cash flow.
“Over the course of 2021, we achieved many notable milestones thanks to the unwavering commitment and support from our employees, customers, and partners. Together, we were able to complete an IPO, simplify our capital structure, and form a bank holding company. We continue to grow and remain very optimistic about our future.” said Luis de la Aguilera, President and Chief Executive Officer. “The formation of the holding company provides more efficient access to capital while allowing flexibility for growth and acquisition strategies. We believe that forming a holding company places us in the best position to respond to evolving market conditions and enables us to take advantage of future opportunities.”
Profitability
• Annualized return on average assets for the quarter ended December 31, 2021 was 1.23% compared to 1.11% in the fourth quarter of 2020.
• Annualized return on average stockholders’ equity for the quarter ended December 31, 2021 was 11.08% compared to 9.96% in the fourth quarter of 2020.
• The efficiency ratio for the quarter ended December 31, 2021 decreased to 55.74% compared to 63.81% for the fourth quarter in 2020.
• Net interest margin (NIM) increased to 3.19% for the quarter ended December 31, 2021 compared to 3.14% for the fourth quarter in 2020.
1
• Net interest income was $14.1 million for the quarter ended December 31, 2021, an increase of $2.6 million or 22.4% compared to the fourth quarter in 2020. The increase was primarily driven by higher loan and investment income along with lower deposit costs.
Balance Sheet
• Total assets were $1.9 billion at December 31, 2021, representing an increase of $352.2 million or 23.5% from the fourth quarter in 2020.
• Total deposits were $1.6 billion at December 31, 2021, representing an increase of $317.0 million or 24.9%, from the fourth quarter in 2020.
• Total shareholders’ equity was $203.9 million at December 31, 2021, representing an increase of $32.9 million or 19.2% from the fourth quarter in 2020.
• Total loans were $1.2 billion at December 31, 2021, representing an increase of $151.6 million or 14.6% from the fourth quarter in 2020.
• The Company purchased a portfolio of commercial real estate loans within the quarter with an aggregate principal balance of $36.0 million.
Asset Quality
• The allowance for credit losses was $15.1 million at December 31, 2021 and 2020.
• The allowance for credit losses represented 1.27% of total loans at December 31, 2021 compared to 1.45% at December 31, 2020.
• Non-performing loans to total loans was 0.10% at December 31, 2021 compared to 0.15% at December 31, 2020.
Non-interest Income and Non-interest Expense
• Non-interest income totaled $2.6 million for the three months ended December 31, 2021, an increase of $1.2 million or 81.9% compared to the same period in 2020. The increase was primarily driven by a $983 thousand gain on the sale of a building.
• Non-interest expense was $9.3 million for the three months ended December 31, 2021 compared to $8.3 million for the same period in 2020.
Capital
• The Company exceeded all regulatory capital requirements and remained significantly above “well-capitalized” guidelines. Total risk-based capital ratio was 14.92% at December 31, 2021 compared to 14.24% for the fourth quarter in 2020.
Conference Call and Webcast
USCB Financial Holdings, Inc. (the “Company”), will host a conference call on Friday, January 28, 2022, at 9:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended December 31, 2021. To access the conference call, dial (844) 221-2148 (domestically) or (929) 517-0937 (internationally) and use conference code 4543356.
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 a bank holding company that operates primarily through its wholly owned subsidiary, 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. U.S. Century Bank is rated 5-star by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services. U.S. Century Bank has received awards and accolades from numerous organizations for its philanthropic support and leadership, including the Beacon Council, Greater Miami Chamber of Commerce, South Florida Hispanic Chamber of Commerce and others. For more information or to find a U.S. Century banking center near you, please call (305) 715-5200 or visit www.uscentury.com.
2
Forward-Looking Statements
Statements included in this earning release that are not historical in nature 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 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 forthcoming CECL implementation;
• 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;
• 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 pricing of our products and services as well as our margins;
• 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 from time to time in the Bank or the Company’s filings with the FDIC or 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 presentation 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, the Bank filed with the FDIC.
Non-GAAP Financial Measures
This earning 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 earning release.
You should assume that all numbers are unaudited unless otherwise noted.
3
Contacts:
Investor Relations
InvestorRelations@uscentury.com
Media Relations
Martha Guerra-Kattou
4
|
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) |
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|
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
|
(Dollars in thousands, except per share data) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
12,786 |
|
$ |
11,549 |
|
$ |
48,730 |
|
$ |
47,078 |
|
Investment securities |
|
2,216 |
|
|
1,492 |
|
|
7,886 |
|
|
5,248 |
|
Interest-bearing deposits in financial institutions |
|
29 |
|
|
46 |
|
|
106 |
|
|
307 |
|
Total interest income |
|
15,031 |
|
|
13,087 |
|
|
56,722 |
|
|
52,633 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
14 |
|
|
30 |
|
|
59 |
|
|
158 |
|
Savings and money markets accounts |
|
510 |
|
|
545 |
|
|
2,082 |
|
|
3,095 |
|
Time deposits |
|
292 |
|
|
864 |
|
|
1,531 |
|
|
4,709 |
|
Federal Home Loan Bank advances |
|
139 |
|
|
149 |
|
|
554 |
|
|
1,074 |
|
Total interest expense |
|
955 |
|
|
1,588 |
|
|
4,226 |
|
|
9,036 |
|
Net interest income before provision for credit losses |
|
14,076 |
|
|
11,499 |
|
|
52,496 |
|
|
43,597 |
|
Provision for credit losses |
|
- |
|
|
- |
|
|
(160) |
|
|
3,250 |
|
Net interest income after provision for credit losses |
|
14,076 |
|
|
11,499 |
|
|
52,656 |
|
|
40,347 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service fees |
|
961 |
|
|
1,030 |
|
|
3,609 |
|
|
3,266 |
|
Gain on sale of securities available for sale, net |
|
35 |
|
|
11 |
|
|
214 |
|
|
434 |
|
Gain (loss) on sale of loans held for sale, net |
|
107 |
|
|
(1) |
|
|
1,626 |
|
|
839 |
|
Gain on sale of other assets |
|
983 |
|
|
- |
|
|
983 |
|
|
- |
|
Loan settlement |
|
- |
|
|
- |
|
|
2,500 |
|
|
- |
|
Other non-interest income |
|
558 |
|
|
414 |
|
|
1,766 |
|
|
1,558 |
|
Total non-interest income |
|
2,644 |
|
|
1,454 |
|
|
10,698 |
|
|
6,097 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
5,634 |
|
|
4,435 |
|
|
21,438 |
|
|
19,204 |
|
Occupancy |
|
1,267 |
|
|
1,402 |
|
|
5,257 |
|
|
5,656 |
|
Regulatory assessment and fees |
|
93 |
|
|
171 |
|
|
783 |
|
|
691 |
|
Consulting and legal fees |
|
539 |
|
|
274 |
|
|
1,454 |
|
|
1,045 |
|
Network and information technology services |
|
268 |
|
|
380 |
|
|
1,466 |
|
|
1,536 |
|
Other operating |
|
1,518 |
|
|
1,603 |
|
|
5,279 |
|
|
4,904 |
|
Total non-interest expense |
|
9,319 |
|
|
8,265 |
|
|
35,677 |
|
|
33,036 |
|
Net income before income tax expense |
|
7,401 |
|
|
4,688 |
|
|
27,677 |
|
|
13,408 |
|
Income tax expense |
|
1,751 |
|
|
449 |
|
|
6,600 |
|
|
2,588 |
|
Net income |
|
5,650 |
|
|
4,239 |
|
|
21,077 |
|
|
10,820 |
|
Preferred stock dividend |
|
- |
|
|
782 |
|
|
2,077 |
|
|
3,127 |
|
Exchange and redemption of preferred shares |
|
- |
|
|
- |
|
|
89,585 |
|
|
- |
|
Net income (loss) available to common stockholders |
$ |
5,650 |
|
$ |
3,457 |
|
$ |
(70,585) |
|
$ |
7,693 |
|
Allocation of net income (loss) per common stock class: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
$ |
5,650 |
|
$ |
2,629 |
|
$ |
(70,585) |
|
$ |
5,851 |
|
Class B |
$ |
- |
|
$ |
828 |
|
$ |
- |
|
$ |
1,842 |
|
Per share information: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, basic |
$ |
0.30 |
|
$ |
0.68 |
|
$ |
(6.72) |
|
$ |
1.51 |
|
Net income (loss) per share, diluted |
$ |
0.30 |
|
$ |
0.67 |
|
$ |
(6.72) |
|
$ |
1.50 |
|
Class B common stock |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic |
$ |
- |
|
$ |
0.14 |
|
$ |
- |
|
$ |
0.30 |
|
Net income per share, diluted |
$ |
- |
|
$ |
0.14 |
|
$ |
- |
|
$ |
0.30 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
18,913,914 |
|
|
3,887,512 |
|
|
10,507,530 |
|
|
3,887,480 |
|
Diluted |
|
19,023,686 |
|
|
3,911,322 |
|
|
10,507,530 |
|
|
3,911,290 |
|
Class B common stock |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
- |
|
|
6,121,052 |
|
|
- |
|
|
6,121,052 |
|
Diluted |
|
- |
|
|
6,121,052 |
|
|
- |
|
|
6,121,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 a as-converted basis (20% per share equivalent to Class A common stock). For the three and twelve months ended December 31, 2021, there were no issued and outstanding Class B common stock due to the exchange of all Class B common stock into Class A common stock that occurred on December 21, 2021. |
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(2) For the three and twelve months ended December 31, 2020, the common stock outstanding, weighted average shares and net income per share for the Class A common stock were adjusted to reflect the 1 for 5 reverse stock split that occurred in June of 2021. |
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5
|
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) |
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|
SELECTED FINANCIAL DATA |
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|
(Dollars in thousands, except per share data) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|||||||||||||
|
|
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
|||||
|
Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
14,076 |
|
$ |
13,471 |
|
$ |
12,474 |
|
$ |
12,475 |
|
$ |
11,499 |
|
Provision for credit losses |
|
- |
|
|
- |
|
|
- |
|
|
(160) |
|
|
- |
|
Net interest income after provision for credit losses |
|
14,076 |
|
|
13,471 |
|
|
12,474 |
|
|
12,635 |
|
|
11,499 |
|
Service fees |
|
961 |
|
|
856 |
|
|
903 |
|
|
889 |
|
|
1,030 |
|
Gain (loss) on sale of securities available for sale, net |
|
35 |
|
|
(70) |
|
|
187 |
|
|
62 |
|
|
11 |
|
Gain (loss) on sale of loans held for sale, net |
|
107 |
|
|
532 |
|
|
23 |
|
|
964 |
|
|
(1) |
|
Gain on sale of other assets |
|
983 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Loan settlement |
|
- |
|
|
2,500 |
|
|
- |
|
|
- |
|
|
- |
|
Other income |
|
558 |
|
|
399 |
|
|
403 |
|
|
406 |
|
|
414 |
|
Total non-interest income |
|
2,644 |
|
|
4,217 |
|
|
1,516 |
|
|
2,321 |
|
|
1,454 |
|
Salaries and employee benefits |
|
5,634 |
|
|
5,313 |
|
|
5,213 |
|
|
5,278 |
|
|
4,435 |
|
Occupancy |
|
1,267 |
|
|
1,192 |
|
|
1,411 |
|
|
1,387 |
|
|
1,402 |
|
Regulatory assessment and fees |
|
93 |
|
|
317 |
|
|
195 |
|
|
178 |
|
|
171 |
|
Consulting and legal fees |
|
539 |
|
|
357 |
|
|
373 |
|
|
185 |
|
|
274 |
|
Network and information technology services |
|
268 |
|
|
358 |
|
|
332 |
|
|
508 |
|
|
380 |
|
Other operating |
|
1,518 |
|
|
1,470 |
|
|
1,150 |
|
|
1,141 |
|
|
1,603 |
|
Total non-interest expenses |
|
9,319 |
|
|
9,007 |
|
|
8,674 |
|
|
8,677 |
|
|
8,265 |
|
Net income before income tax expense |
|
7,401 |
|
|
8,681 |
|
|
5,316 |
|
|
6,279 |
|
|
4,688 |
|
Income tax expense |
|
1,751 |
|
|
2,088 |
|
|
1,263 |
|
|
1,498 |
|
|
449 |
|
Net income |
|
5,650 |
|
|
6,593 |
|
|
4,053 |
|
|
4,781 |
|
|
4,239 |
|
Preferred stock dividend |
|
- |
|
|
542 |
|
|
754 |
|
|
781 |
|
|
782 |
|
Exchange and redemption of preferred shares |
|
- |
|
|
89,585 |
|
|
- |
|
|
- |
|
|
- |
|
Net income (loss) available to common stockholders |
$ |
5,650 |
|
$ |
(83,534) |
|
$ |
3,299 |
|
$ |
4,000 |
|
$ |
3,457 |
|
Allocation of net income (loss) per common stock class: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
$ |
5,650 |
|
$ |
(77,278) |
|
$ |
2,509 |
|
$ |
3,042 |
|
$ |
2,629 |
|
Class B |
$ |
- |
|
$ |
(6,256) |
|
$ |
790 |
|
$ |
958 |
|
$ |
828 |
|
Per share information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, basic |
$ |
0.30 |
|
$ |
(5.11) |
|
$ |
0.65 |
|
$ |
0.78 |
|
$ |
0.68 |
|
Net income (loss) per share, diluted |
$ |
0.30 |
|
$ |
(5.11) |
|
$ |
0.64 |
|
$ |
0.78 |
|
$ |
0.67 |
|
Class B common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, basic |
$ |
- |
|
$ |
(1.02) |
|
$ |
0.13 |
|
$ |
0.16 |
|
$ |
0.14 |
|
Net income (loss) per share, diluted |
$ |
- |
|
$ |
(1.02) |
|
$ |
0.13 |
|
$ |
0.16 |
|
$ |
0.14 |
|
Balance Sheet Data (at period-end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
46,228 |
|
$ |
69,597 |
|
$ |
47,117 |
|
$ |
105,940 |
|
$ |
47,734 |
|
Securities available-for-sale |
$ |
401,542 |
|
$ |
328,171 |
|
$ |
395,804 |
|
$ |
341,344 |
|
$ |
334,322 |
|
Securities held-to-maturity |
$ |
122,658 |
|
$ |
99,866 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
Loans held for investment (3) |
$ |
1,190,081 |
|
$ |
1,176,412 |
|
$ |
1,145,095 |
|
$ |
1,103,981 |
|
$ |
1,038,504 |
|
Allowance for credit losses |
$ |
(15,057) |
|
$ |
(14,900) |
|
$ |
(14,848) |
|
$ |
(15,009) |
|
$ |
(15,086) |
|
Total assets |
$ |
1,853,939 |
|
$ |
1,755,011 |
|
$ |
1,667,005 |
|
$ |
1,633,359 |
|
$ |
1,501,742 |
|
Non-interest-bearing deposits |
$ |
605,425 |
|
$ |
570,091 |
|
$ |
555,993 |
|
$ |
516,550 |
|
$ |
442,467 |
|
Interest-bearing deposits |
$ |
984,954 |
|
$ |
914,498 |
|
$ |
882,783 |
|
$ |
887,681 |
|
$ |
830,935 |
|
Federal Home Loan Bank advances and other borrowings |
$ |
36,000 |
|
$ |
36,000 |
|
$ |
36,000 |
|
$ |
36,000 |
|
$ |
36,000 |
|
Total liabilities |
$ |
1,650,042 |
|
$ |
1,553,093 |
|
$ |
1,500,703 |
|
$ |
1,462,934 |
|
$ |
1,330,741 |
|
Total stockholders' equity |
$ |
203,897 |
|
$ |
201,918 |
|
$ |
166,302 |
|
$ |
170,425 |
|
$ |
171,001 |
|
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio |
|
9.55% |
|
|
9.69% |
|
|
7.91% |
|
|
8.57% |
|
|
8.61% |
|
Common equity tier 1 capital |
|
13.70% |
|
|
13.85% |
|
|
9.24% |
|
|
9.47% |
|
|
9.71% |
|
Tier 1 risk-based capital |
|
13.70% |
|
|
13.85% |
|
|
11.44% |
|
|
12.54% |
|
|
12.99% |
|
Total risk-based capital |
|
14.92% |
|
|
15.10% |
|
|
12.69% |
|
|
13.80% |
|
|
14.24% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 a as-converted basis (20% per share equivalent to Class A common stock). For the three months ended December 31, 2021, there were no issued and outstanding Class B common stock due to the exchange of all Class B common stock into Class A common stock that occurred on December 21, 2021. |
||||||||||||||
|
(2) The quarters ended June 30, 2021 and prior were all adjusted for the 1 for 5 reverse stock split. |
||||||||||||||
|
(3) Loan amounts include deferred fees/costs. |
||||||||||||||
6
|
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) |
||||||||||||||
|
AVERAGE BALANCES, RATIOS, AND OTHER |
||||||||||||||
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|||||||||||||
|
|
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
|||||
|
Average balance sheet data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
87,819 |
|
$ |
116,622 |
|
$ |
108,028 |
|
$ |
86,157 |
|
$ |
154,415 |
|
Securities available-for-sale |
$ |
374,589 |
|
$ |
346,407 |
|
$ |
382,990 |
|
$ |
334,723 |
|
$ |
251,294 |
|
Securities held-to-maturity |
$ |
114,108 |
|
$ |
51,238 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
Loans held for investment(1) |
$ |
1,158,755 |
|
$ |
1,144,275 |
|
$ |
1,088,492 |
|
$ |
1,071,782 |
|
$ |
1,036,249 |
|
Total assets |
$ |
1,828,037 |
|
$ |
1,741,423 |
|
$ |
1,660,060 |
|
$ |
1,573,881 |
|
$ |
1,522,735 |
|
Interest-bearing deposits |
$ |
958,241 |
|
$ |
912,330 |
|
$ |
896,271 |
|
$ |
861,300 |
|
$ |
854,206 |
|
Non-interest-bearing deposits |
$ |
603,735 |
|
$ |
564,928 |
|
$ |
535,894 |
|
$ |
482,376 |
|
$ |
437,221 |
|
Total deposits |
$ |
1,561,976 |
|
$ |
1,477,258 |
|
$ |
1,432,165 |
|
$ |
1,343,676 |
|
$ |
1,291,427 |
|
Federal Home Loan Bank advances and other borrowings |
$ |
36,000 |
|
$ |
36,000 |
|
$ |
36,000 |
|
$ |
36,000 |
|
$ |
37,522 |
|
Total liabilities |
$ |
1,625,675 |
|
$ |
1,546,414 |
|
$ |
1,493,129 |
|
$ |
1,402,305 |
|
$ |
1,353,424 |
|
Total stockholders' equity |
$ |
202,362 |
|
$ |
195,009 |
|
$ |
166,931 |
|
$ |
171,576 |
|
$ |
169,311 |
|
Performance ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (2) |
|
1.23% |
|
|
1.50% |
|
|
0.98% |
|
|
1.23% |
|
|
1.11% |
|
Return on average equity (2) |
|
11.08% |
|
|
13.41% |
|
|
9.74% |
|
|
11.30% |
|
|
9.96% |
|
Net interest margin (2) |
|
3.19% |
|
|
3.19% |
|
|
3.14% |
|
|
3.35% |
|
|
3.14% |
|
Non-interest income to average assets (2) |
|
0.57% |
|
|
0.96% |
|
|
0.37% |
|
|
0.60% |
|
|
0.38% |
|
Efficiency ratio (3) |
|
55.74% |
|
|
50.92% |
|
|
62.00% |
|
|
58.64% |
|
|
63.81% |
|
Loans by type (at period end): (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
201,359 |
|
$ |
201,124 |
|
$ |
213,575 |
|
$ |
231,554 |
|
$ |
232,754 |
|
Commercial real estate |
$ |
704,988 |
|
$ |
693,469 |
|
$ |
673,944 |
|
$ |
650,762 |
|
$ |
606,425 |
|
Commercial and industrial |
$ |
146,592 |
|
$ |
137,486 |
|
$ |
155,440 |
|
$ |
174,546 |
|
$ |
157,330 |
|
Foreign banks |
$ |
59,491 |
|
$ |
58,839 |
|
$ |
62,042 |
|
$ |
45,659 |
|
$ |
38,999 |
|
Consumer and other |
$ |
79,229 |
|
$ |
87,515 |
|
$ |
43,979 |
|
$ |
5,627 |
|
$ |
5,507 |
|
Asset quality data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to total loans |
|
1.27% |
|
|
1.27% |
|
|
1.30% |
|
|
1.36% |
|
|
1.45% |
|
Allowance for credit losses to non-performing loans |
|
1,265% |
|
|
82,778% |
|
|
74,240% |
|
|
2,214% |
|
|
956% |
|
Non-accrual loans less non-accrual TDRs |
|
1,190 |
|
|
- |
|
|
- |
|
|
228 |
|
|
303 |
|
Non-accrual TDRs |
|
- |
|
|
18 |
|
|
20 |
|
|
450 |
|
|
1,275 |
|
Loans- over 90 days past due and accruing |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total non-performing loans(5) |
|
1,190 |
|
|
18 |
|
|
20 |
|
|
678 |
|
|
1,578 |
|
Non-performing loans to total loans |
|
0.10% |
|
|
0.00% |
|
|
0.00% |
|
|
0.06% |
|
|
0.15% |
|
Non-performing assets to total assets |
|
0.06% |
|
|
0.00% |
|
|
0.00% |
|
|
0.04% |
|
|
0.11% |
|
Net charge-offs (recoveries of) to average loans (2) |
|
(0.05)% |
|
|
(0.02)% |
|
|
0.06% |
|
|
(0.03)% |
|
|
0.05% |
|
Net charge-offs (recovery of) credit losses |
|
(157) |
|
|
(51) |
|
|
160 |
|
|
(83) |
|
|
121 |
|
Interest rates and yields:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
4.32% |
|
|
4.29% |
|
|
4.19% |
|
|
4.43% |
|
|
4.36% |
|
Investment securities |
|
1.81% |
|
|
1.86% |
|
|
2.04% |
|
|
2.19% |
|
|
2.35% |
|
Total interest-earning assets |
|
3.41% |
|
|
3.43% |
|
|
3.41% |
|
|
3.69% |
|
|
3.57% |
|
Deposits |
|
0.21% |
|
|
0.22% |
|
|
0.26% |
|
|
0.34% |
|
|
0.44% |
|
Borrowings and repurchase agreements |
|
1.51% |
|
|
1.52% |
|
|
1.52% |
|
|
1.52% |
|
|
1.55% |
|
Total interest-bearing liabilities |
|
0.38% |
|
|
0.40% |
|
|
0.45% |
|
|
0.57% |
|
|
0.71% |
|
Other information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees |
|
187 |
|
|
184 |
|
|
183 |
|
|
186 |
|
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 periods presented since there were no impaired investments or other real estate owned (OREO) recorded. |
||||||||||||||
7
|
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) |
|||||||||||||||
|
NET INTEREST MARGIN |
|||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||
|
|
Average Balance |
|
Interest |
|
Yield/Rate (1) |
|
Average Balance |
|
Interest |
|
Yield/Rate (1) |
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2) |
$ |
1,158,755 |
|
$ |
12,786 |
|
4.32% |
|
$ |
1,036,249 |
|
$ |
11,549 |
|
4.36% |
|
Investment securities (3) |
|
490,797 |
|
|
2,216 |
|
1.81% |
|
|
254,070 |
|
|
1,492 |
|
2.35% |
|
Other interest earnings assets |
|
80,170 |
|
|
29 |
|
0.14% |
|
|
145,895 |
|
|
46 |
|
0.12% |
|
Total interest-earning assets |
|
1,729,722 |
|
|
15,031 |
|
3.41% |
|
|
1,436,214 |
|
|
13,087 |
|
3.75% |
|
Non-interest earning assets |
|
98,315 |
|
|
|
|
|
|
|
86,521 |
|
|
|
|
|
|
Total assets |
$ |
1,828,037 |
|
|
|
|
|
|
$ |
1,522,735 |
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
$ |
56,558 |
|
$ |
14 |
|
0.10% |
|
$ |
48,530 |
|
$ |
30 |
|
0.25% |
|
Saving and money market deposits |
|
673,993 |
|
|
510 |
|
0.30% |
|
|
541,824 |
|
|
545 |
|
0.40% |
|
Time deposits |
|
227,690 |
|
|
292 |
|
0.51% |
|
|
263,852 |
|
|
864 |
|
1.30% |
|
Total interest-bearing deposits |
|
958,241 |
|
|
816 |
|
0.34% |
|
|
854,206 |
|
|
1,439 |
|
0.67% |
|
Borrowings and repurchase agreements |
|
36,000 |
|
|
139 |
|
1.51% |
|
|
37,522 |
|
|
149 |
|
1.55% |
|
Total interest-bearing liabilities |
|
994,241 |
|
|
955 |
|
0.38% |
|
|
891,728 |
|
|
1,588 |
|
0.71% |
|
Non-interest bearing demand deposits |
|
603,735 |
|
|
|
|
|
|
|
437,221 |
|
|
|
|
|
|
Other non-interest-bearing liabilities |
|
27,699 |
|
|
|
|
|
|
|
24,475 |
|
|
|
|
|
|
Total liabilities |
|
1,625,675 |
|
|
|
|
|
|
|
1,353,424 |
|
|
|
|
|
|
Stockholders' equity |
|
202,362 |
|
|
|
|
|
|
|
169,311 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,828,037 |
|
|
|
|
|
|
$ |
1,522,735 |
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
14,076 |
|
|
|
|
|
|
$ |
11,499 |
|
|
|
Net interest spread (4) |
|
|
|
|
|
|
3.03% |
|
|
|
|
|
|
|
2.86% |
|
Net interest margin (5) |
|
|
|
|
|
|
3.19% |
|
|
|
|
|
|
|
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. |
|||||||||||||||
|
(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. (UNAUDITED) |
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES |
||||||||||||||
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|||||||||||||
|
|
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
|||||
|
Pre-Tax Pre-Provision ("PTPP") Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,650 |
|
$ |
6,593 |
|
$ |
4,053 |
|
$ |
4,781 |
|
$ |
4,239 |
|
Plus: Provision for income taxes |
|
1,751 |
|
|
2,088 |
|
|
1,263 |
|
|
1,498 |
|
|
449 |
|
Plus: Provision for (recovery of) credit losses |
|
- |
|
|
- |
|
|
- |
|
|
(160) |
|
|
- |
|
PTPP income |
$ |
7,401 |
|
$ |
8,681 |
|
$ |
5,316 |
|
$ |
6,119 |
|
$ |
4,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PTPP Return on Average Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PTPP income |
$ |
7,401 |
|
$ |
8,681 |
|
$ |
5,316 |
|
$ |
6,119 |
|
$ |
4,688 |
|
Average assets |
$ |
1,828,037 |
|
$ |
1,741,423 |
|
$ |
1,660,060 |
|
$ |
1,573,881 |
|
$ |
1,522,735 |
|
PTPP return on average assets (1) |
|
1.61% |
|
|
1.98% |
|
|
1.28% |
|
|
1.58% |
|
|
1.22% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,650 |
|
$ |
6,593 |
|
$ |
4,053 |
|
$ |
4,781 |
|
$ |
4,239 |
|
Less: Net gains (losses) on sale of securities |
|
35 |
|
|
(70) |
|
|
187 |
|
|
62 |
|
|
11 |
|
Less: Tax effect on sale of securities |
|
(9) |
|
|
17 |
|
|
(46) |
|
|
(15) |
|
|
(3) |
|
Operating net income |
$ |
5,624 |
|
$ |
6,646 |
|
$ |
3,912 |
|
$ |
4,734 |
|
$ |
4,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating PTPP Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PTPP income |
$ |
7,401 |
|
$ |
8,681 |
|
$ |
5,316 |
|
$ |
6,119 |
|
$ |
4,688 |
|
Less: Net gains (losses) on sale of securities |
|
35 |
|
|
(70) |
|
|
187 |
|
|
62 |
|
|
11 |
|
Operating PTPP Income |
$ |
7,366 |
|
$ |
8,751 |
|
$ |
5,129 |
|
$ |
6,057 |
|
$ |
4,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating PTPP Return on Average Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating PTPP income |
$ |
7,366 |
|
$ |
8,751 |
|
$ |
5,129 |
|
$ |
6,057 |
|
$ |
4,677 |
|
Average assets |
$ |
1,828,037 |
|
$ |
1,741,423 |
|
$ |
1,660,060 |
|
$ |
1,573,881 |
|
$ |
1,522,735 |
|
Operating PTPP Return on average assets (1) |
|
1.60% |
|
|
1.99% |
|
|
1.24% |
|
|
1.56% |
|
|
1.22% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return on Average Asset: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
$ |
5,624 |
|
$ |
6,646 |
|
$ |
3,912 |
|
$ |
4,734 |
|
$ |
4,231 |
|
Average assets |
$ |
1,828,037 |
|
$ |
1,741,423 |
|
$ |
1,660,060 |
|
$ |
1,573,881 |
|
$ |
1,522,735 |
|
Operating return on average assets (1) |
|
1.22% |
|
|
1.51% |
|
|
0.95% |
|
|
1.22% |
|
|
1.11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized. |
||||||||||||||
9
|
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) |
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES |
||||||||||||||
|
(Dollars in thousands, except per share data) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|||||||||||||
|
|
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
|||||
|
Tangible Book Value per Common Share (at period-end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity (GAAP) |
$ |
203,897 |
|
$ |
201,918 |
|
$ |
166,302 |
|
$ |
170,425 |
|
$ |
171,001 |
|
Less: Intangible assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Less: Preferred stock |
|
- |
|
|
- |
|
|
24,616 |
|
|
32,077 |
|
|
32,077 |
|
Tangible stockholders' equity (non-GAAP) |
$ |
203,897 |
|
$ |
201,918 |
|
$ |
141,686 |
|
$ |
138,348 |
|
$ |
138,924 |
|
Total shares issued and outstanding (at period-end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares |
|
19,991,753 |
|
|
18,767,541 |
|
|
3,889,469 |
|
|
3,889,469 |
|
|
3,889,469 |
|
Class B common shares |
|
- |
|
|
1,224,212 |
|
|
1,224,212 |
|
|
1,224,212 |
|
|
1,224,212 |
|
Total common shares outstanding |
|
19,991,753 |
|
|
19,991,753 |
|
|
5,113,681 |
|
|
5,113,681 |
|
|
5,113,681 |
|
Tangible book value per common share (non-GAAP) |
$ |
10.20 |
|
$ |
10.10 |
|
$ |
27.71 |
|
$ |
27.05 |
|
$ |
27.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Income Available to Common Stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
5,650 |
|
$ |
6,593 |
|
$ |
4,053 |
|
$ |
4,781 |
|
$ |
4,239 |
|
Less: Preferred dividends |
|
- |
|
|
542 |
|
|
754 |
|
|
781 |
|
|
782 |
|
Less: Exchange and redemption of preferred shares |
|
- |
|
|
89,585 |
|
|
- |
|
|
- |
|
|
- |
|
Net income (loss) available to common stockholders (GAAP) |
|
5,650 |
|
|
(83,534) |
|
|
3,299 |
|
|
4,000 |
|
|
3,457 |
|
Add back: Exchange and redemption of preferred shares |
|
- |
|
|
89,585 |
|
|
- |
|
|
- |
|
|
- |
|
Operating net income avail. to common stock (non-GAAP) (1) |
$ |
5,650 |
|
$ |
6,051 |
|
$ |
3,299 |
|
$ |
4,000 |
|
$ |
3,457 |
|
Allocation of operating net income per common stock class: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock |
$ |
5,650 |
|
$ |
5,598 |
|
$ |
2,509 |
|
$ |
3,042 |
|
$ |
2,629 |
|
Class B common stock |
$ |
- |
|
$ |
453 |
|
$ |
790 |
|
$ |
958 |
|
$ |
828 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
18,913,914 |
|
|
15,121,460 |
|
|
3,889,469 |
|
|
3,889,469 |
|
|
3,887,512 |
|
Diluted |
|
19,023,686 |
|
|
15,187,729 |
|
|
3,933,636 |
|
|
3,913,279 |
|
|
3,911,322 |
|
Class B common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
- |
|
|
6,121,052 |
|
|
6,121,052 |
|
|
6,121,052 |
|
|
6,121,052 |
|
Diluted |
|
- |
|
|
6,121,052 |
|
|
6,121,052 |
|
|
6,121,052 |
|
|
6,121,052 |
|
Diluted EPS: (1) (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share (GAAP) |
$ |
0.30 |
|
$ |
(5.11) |
|
$ |
0.64 |
|
$ |
0.78 |
|
$ |
0.67 |
|
Add back: Exchange and redemption of preferred shares |
|
- |
|
|
5.48 |
|
|
- |
|
|
- |
|
|
- |
|
Operating net income per diluted share (non-GAAP) |
$ |
0.30 |
|
$ |
0.37 |
|
$ |
0.64 |
|
$ |
0.78 |
|
$ |
0.67 |
|
Class B common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share (GAAP) |
$ |
- |
|
$ |
(1.02) |
|
$ |
0.13 |
|
$ |
0.16 |
|
$ |
0.14 |
|
Add back: Exchange and redemption of preferred shares |
|
- |
|
|
1.09 |
|
|
- |
|
|
- |
|
|
- |
|
Operating net income per diluted share (non-GAAP) |
$ |
- |
|
$ |
0.07 |
|
$ |
0.13 |
|
$ |
0.16 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company. |
||||||||||||||
|
(2) For 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. |
||||||||||||||
|
(3) During the quarter ended December 31, 2021, the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting stock for Class A voting common stock at a ratio of 5 to 1. 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 a as-converted basis. |
||||||||||||||
10
|
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) |
|||||
|
NON-GAAP FINANCIAL MEASURES |
|||||
|
(Dollars in thousands, except per share data) |
|||||
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||
|
|
2021 |
|
2020 |
||
|
Operating Net Income Available to Common Stockholders: |
|
|
|
|
|
|
Net income (GAAP) |
$ |
21,077 |
|
$ |
10,820 |
|
Less: Preferred dividends |
|
2,077 |
|
|
3,127 |
|
Less: Exchange and redemption of preferred shares |
|
89,585 |
|
|
- |
|
Net income (loss) available to common stockholders (GAAP) |
|
(70,585) |
|
|
7,693 |
|
Add back: Exchange and redemption of preferred shares |
|
89,585 |
|
|
- |
|
Operating net income avail. to common stock (non-GAAP) (1) |
$ |
19,000 |
|
$ |
7,693 |
|
Allocation of operating net income per common stock class: |
|
|
|
|
|
|
Class A common stock |
$ |
19,000 |
|
$ |
5,851 |
|
Class B common stock |
$ |
- |
|
$ |
1,842 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Class A common stock |
|
|
|
|
|
|
Basic |
|
10,507,530 |
|
|
3,887,480 |
|
Diluted |
|
10,567,833 |
|
|
3,911,290 |
|
Class B common stock |
|
|
|
|
|
|
Basic |
|
- |
|
|
6,121,052 |
|
Diluted |
|
- |
|
|
6,121,052 |
|
Diluted EPS: (1) (2) |
|
|
|
|
|
|
Class A common stock |
|
|
|
|
|
|
Net income (loss) per diluted share (GAAP) |
$ |
(6.72) |
|
$ |
1.50 |
|
Add back: Exchange and redemption of preferred shares |
|
8.53 |
|
|
- |
|
Operating net income per diluted share (non-GAAP) |
$ |
1.81 |
|
$ |
1.50 |
|
Class B common stock |
|
|
|
|
|
|
Net income per diluted share (GAAP) |
$ |
- |
|
$ |
0.30 |
|
Add back: Exchange and redemption of preferred shares |
|
- |
|
|
- |
|
Operating net income per diluted share (non-GAAP) |
$ |
- |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
(1) The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company. |
|||||
|
(2) During the year ended December 31, 2021, the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting stock for Class A voting common stock at a ratio of 5 to 1. As such, there are no issued and outstanding shares of Class B common stock for the year ended 2021. |
|||||
11
Exhibit 99.2 USCB FINANCIAL HOLDINGS Fourth Quarter 2021 Earnings Presentation January 28, 2022
Forward-Looking Statements Statements included in this presentation that are not historical in nature 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 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 forthcoming CECL implementation; • 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; • 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 pricing of our products and services as well as our margins; • 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 from time to time in the Bank or the Company’s filings with the FDIC or 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 presentation 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, the Bank filed with the FDIC. NON-GAAP FINANCIAL MEASURES This presentation 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 our underlying performance trends. Further, management uses these measures in managing and evaluating our 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 presentation. You should assume that all numbers are unaudited unless otherwise noted. 2
Q4 2021 Highlights Capital/ Credit Formed a Bank Holding Company on December 30, 2021. Exchanged all Common B shares for Common A shares completing the last step in a capital simplification project. USCB now has one capital instrument and a simplified capital structure. On January 24, 2022 the Board of Directors approved a share repurchase program for 750,000 of Common A shares. Credit metrics remain at historical low levels. Profitability Net income was $5.7 million an increase of $1.4 million or 33.3% compared to the fourth quarter 2020. ROAA was 1.23% compared to 1.11% in the fourth quarter 2020. ROAE was 11.08% compared to 9.96% in the fourth quarter 2020. Efficiency ratio was 55.74% compared to 63.81% in the fourth quarter 2020. Improvement of the efficiency ratio primarily driven by $983K one-time gain on sale of the East Hialeah Banking Center building, an impact of $0.04 EPS for Q4 2021. Growth Expanded presence in Broward/Palm Beach market. Loans $224 million; Deposits $156 million. Average deposits increased by $270.5 million or 20.9% compared to fourth quarter 2020. Average loans excluding PPP increased by $179.9 million or 19.4% compared to fourth quarter 2020. 3
Financial Results In thousands (except per share data) Q4 2021 Q3 2021 Q4 2020 Balance Sheet (EOP) Income Statement Investment Securities $526,301 $430,137 $337,033 Total Loans (1) $1,190,080 $1,176,412 $1,038,504 Total Assets $1,853,939 $1,755,011 $1,501,742 Total Deposits $1,590,379 $1,484,589 $1,273,402 Total Equity $203,897 $201,918 $171,001 Net Interest Income $14,076 $13,471 $11,499 Non-interest Income $2,644 $4,217 $1,454 Revenue $16,720 $17,688 $12,953 Provision for Credit Losses - - - Non-interest Expense $9,319 $9,007 $8,265 Net Income $5,650 $6,593 $4,239 Net Income (loss) available to common stockholders (2) $5,650 $(83,534) $3,457 Diluted Earning Per Share (EPS) Class A Common Stock $0.30 -$5.11 $0.67 Class B Common Stock - -$1.02 $0.14 Diluted Operating EPS (3) Class A Common Stock $0.30 $0.37 $0.67 Class B Common Stock - $0.07 $0.14 (1) Loan amounts includes deferred fees/costs. (2) Includes preferred dividend expense and a one-time accounting impact of $89.6 million for the exchange and redemption of preferred shares. (3) Non-GAAP Financial Measures. 4
Key Performance Indicators Q4 2021 Q3 2021 Q4 2020 Capital Credit Profitability Tangible Common Equity/Tangible Assets(1) 11.00% 11.51% 9.25% Total Risk Based Capital 14.93% 15.10% 14.24% NCO/Avg Loans (2) -0.05% -0.02% 0.05% NPA/Assets 0.06% 0.00% 0.11% Allowance Credit Losses/Loans 1.27% 1.27% 1.45% Return On Average Assets (ROAA) (2) 1.23% 1.50% 1.11% Return On Average Equity (ROAE) (2) 11.08% 13.41% 9.96% Net Interest Margin (2) 3.19% 3.19% 3.14% Efficiency Ratio 55.74% 50.92% 63.81% PTPP ROAA (1)(2) 1.61% 1.98% 1.22% In thousands (except for TBV/share) Growth Total Assets (EOP) $1,853,939 $1,755,011 $1,501,742 Total Loans (EOP) $1,190,081 $1,176,412 $1,038,504 Total Deposits (EOP) $1,590,379 $1,484,589 $1,273,402 Tangible Book Value/Share (1) $10.20 $10.10 $27.17 (1) Non-GAAP Financial Measures. (2) Annualized. 5
Loan Portfolio Total Loans (AVG) In millions $1,200 $1,036 $1,072 $1,088 $1,144 $1,159 $1,100 $108 $113 $99 $73 $51 $1,000 $928 $959 $989 $1,071 $1,108 $900 $800 $700 $600 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Loans (Excl PPP) PPP Loans Commentary Total average loans excluding PPP loans increased $36.6 million or 13.6% annualized compared to last quarter and $179.9 million or 19.4% compared to fourth quarter 2020. Loan coupon stable from prior quarter. PPP loans continue decreasing with forgiveness process. 5.00% 4.36% 4.43% 4.19% 4.29% 4.32% 4.50% 0.34% 0.48% 0.28% 0.32% 0.33% 4.00% 4.02% 3.95% 3.91% 3.97% 3.99% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Loan coupon Loans fees 6
Paycheck Protection Program (PPP) 3 successful rounds of PPP loans, originating $168.4 million. Forgiveness of the last round of PPP loans is in process. In thousands (except for ROAA) Q4 2021 Q3 2021 Q4 2020 Pre-Tax Income $7,401 $8,681 $4,688 Net Income $5,650 $6,593 $4,239 Average Assets $1,828,037 $1,741,423 $1,522,735 ROAA (1) 1.23% 1.50% 1.11% of which PPP Income $978 $1,071 $1,135 Unrealized PPP Fees EOP $1,506 $2,360 $1,772 PPP Balance EOP $42,424 $57,991 $104,832 PPP AVG. Balance $51,098 $73,215 $108,529 PPP Loans Annualized. 7
Deposit Portfolio Deposits (AVG) In millions $1,800 $1,291 $1,344 $1,432 $1,477 $1,562 $1,600 $264 $248 $236 $229 $228 $1,400 $954 $569 $608 $628 $674 $1,200 $48 $45 $52 $55 $56 $1,000 $437 $482 $536 $565 $604 $800 $600 $400 $200 - Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Noninterest-bearing deposits Interest-bearing demand deposits Money market and savings Time deposits Average deposits increased $84.7 million or 22.8% annualized compared to last quarter and $270.5 million or 20.9% compared to fourth quarter 2020. DDA average deposits grew $39.1 million or 27.4% annualized compared to last quarter and $166.8 million or 38.1% compared to fourth quarter 2020. DDA balances comprise 38.7% of total deposits. 23 bps decrease in deposit cost compared to fourth quarter 2020. Deposit Cost (1) 0.23% 0.50% 0.44% 0.34% 0.26% 0.22% 0.21% 0.45% 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 (1) Annualized. 8
Net Interest Margin Net Interest Income/Margin (1) In thousands (except ratios) $16,000 3.14% 3.35% 3.14% 3.19% 3.19% $14,000 3.06% 3.19% 3.10% 3.08% 3.06% $12,000 $11,499 $12,475 $12,474 $13,471 $14,076 $10,000 $8,000 $6,000 $4,000 $2,000 $- Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net Interest Income NIM NIM excluding PPP Loans Commentary Net interest income increased by $605K or 17.8% annualized compared to last quarter and $2.6 million or 22.4% compared to fourth quarter 2020. NII growth driven by lower deposit cost and interest income generated by a larger loan and investment portfolio. NIM impacted by shift in balance sheet mix. Cash balances and securities make up 33% of total interest earning assets in the fourth quarter 2021. Interest Earning Assets Mix (AVG) 100% 10% 5% 7% 6% 5% 90% 17% 23% 24% 24% 28% 80% 8% 8% 6% 5% 3% 70% 65% 64% 63% 65% 64% 60% 50% 40% 30% 20% 10% 0% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Total Loans (excluding PPP Loans) PPP Loans Investment Securities Cash Balances & Equivalents (1) NIM annualized. 9
Interest Rate Sensitivity Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 7% Variable Rate 53% Fixed Rate 40% 27% 23% 50% Prime CTM LIBOR Loan Repricing Schedule 35.7% 48.9% 7.29% 8.2% 0-1 yrs 1-2 yrs 2-3 yrs >3 yrs Static NII Simulation Year 1 & 2 $3,500 0.0% 0.1% 0.2% 3.2% 6.5% $3,000 $38 $124 $1,298 $3,090 $2,500 $2,000 $1,500 $1,000 $500 $- Level +100 +200 +100 +200 Net Interest Income ($ in ‘000) Change from base (%) Year 1 Year 2 As of 12/31/21 10
Non-interest Income In thousands (except ratios) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Service fees $961 $856 $903 $889 $1,030 Gain (loss) on sale of securities available for sale 35 (70) 187 62 11 Gain (loss) on sale of loans held for sale 107 532 23 964 (1) Gain on sale of other assets 983 - - - - Loan settlement h- 2,500 - - - Other income 558 399 403 406 414 Total non-interest income $2,644 $4,217 $1,516 $2,321 $1,454 Average total assets $1,828,037 $1,741,423 $1,660,060 $1,573,881 $1,522,735 Non-interest income / Average assets (1) 0.57% 0.96% 0.37% 0.60% 0.38% Revenue $16,720 $17,688 $13,990 $14,796 $12,953 Non-interest income as % of revenue 15.81% 23.85% 10.84% 15.69% 11.23% Commentary $983K gain on sale of the East Hialeah Banking Center building. Increase in other income due to the purchase of additional bank owned life insurance. (1) Annualized. 11
Non-interest Expense In thousands (except ratios and FTE) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Salaries and employee benefits )$5,634 $5,313 $5,213 $5,278 $4,435 Occupancy )1,267 1,192 1,411 1,387 1,402 Regulatory assessment and fees ))93 317 195 178 171 Consulting and legal fees )539 357 373 185 274 Network and information technology services )268 358 332 508 380 Other operating )1,518 1,470 1,150 1,141 1,603 Total non-interest expenses $9,319 $9,007 $8,674 $8,677 $8,265 Efficiency ratio 55.74% 50.92% 62.00% 58.64% 63.81% Average total assets $1,828,037 $1,741,423 $1,660,060 $1,573,881 $1,522,735 Non-interest expense / Average assets (1) 2.02% 2.05% 2.10% 2.24% 2.16% Full-time equivalent employees 187 184 183 186 179 Commentary Salaries and employee benefits increased due to stock options expense, new hires, and higher bonus accrual based on company performance. Lower regulatory assessment and fees due to decrease in FDIC insurance expense. Consulting and legal fees contains $180K one-time fees associated with formation of the Bank Holding Company, legal fees, and employee placement fees. Network and information technology services decrease contains ~$200K in one-time credits. (1) Annualized. 12
Business Verticals JA/PCG(1) HOA(2) SBA(3) Global Yachts $130 Million $68 Million $39 Million $154 Million $80 Million in Deposits in Deposits In Loans in Deposits in Loans 34% Growth YoY (11%) Growth YoY 20% Growth YoY 12% Growht YoY Loan Purchases $46 Million $20 $59 Million (In millions) in Loans $4 Remain in Loans $44 109% Growth YoY $16 Sold 53% Growth YoY $48 2021 SBA &As Q2 2021 (In millions) Q3 2021 Balances as of 12/31/21 EOP (1) JA/PCG: Jurist Advantage/Private Client Group (2) HOA: Homeowners Association (3) Does not include PPP Loans. 13
Asset Quality Allowance for Credit Losses In thousands (except ratios) $15,150 1.61% 1.51% 1.40% 1.33% 1.31% $15,100 1.45% 1.36% 1.30% 1.27% 1.27% $15,050 $15,086 $15,009 $14,848 $14,900 $15,057 $15,000 $14,950 $14,900 $14,850 $14,800 $14,750 $14,700 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Allowance for credit losses ACL/Total Loans ACL/Total loans excluding PPP loans Commentary No loans are under deferment due to Covid-19 Non-performing loans is comprised of one loan No OREOs 0.10% non-performing loans to total loans ratio Non-performing Loans In thousands (except ratios) $1,800 0.15% 0.06% 0.00% 0.00% 0.10% $1,600 $1,578 $678 $20 $18 $1,190 $1,400 $303 $228 $1,190 $1,200 $1,275 $450 $1,000 $800 $600 $400 $200 $- Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Non-accrual TDRs Non-accrual loans less non-accrual TDRs Non-performing loans to total loans 14
Capital
Capital Ratios Q4 2021 Q3 2021 Q42020 Well-Capitalized
Leverage Ratio 9.55% 9.69% 8.61% 5.00%
TCE/TA(1) 11.00% 11.51% 9.25% NA
Tier 1 Risk Based Capital 13.70% 13.85% 12.99% 8.00%
Total Risk Based Capital 14.92% 15.10% 14.24% 10.00%
Commentary
Formed a Bank Holding Company on December 30, 2021
All capital ratios remain significantly above “well capitalized” guidelines
No remaining Common B shares at quarter-end
The Board of Directors approved a share repurchase program for 750,000 of Common A shares.
EOP Shares outstanding:
Class A Common Stock: 19,991,753
(1) Non-GAAP.
15
Takeaways Leading Franchise Located in one of the Most Attractive Banking Markets in Florida and the U.S. Experienced and Tested Management Team Robust Organic Growth Low Risk, Commercially Oriented Loan Portfolio Strong Asset Quality, with Minimal Charge-offs Experienced Since Recapitalization Strong Profitability, with Pathway For Future Enhancement Identified Core Funded Deposit Base with 38.1% Non-Interest Bearing Deposits (EOP) Balanced Liquidity Profile – 74.8% Loan / Deposit Ratio to Support Future Loan Deployment 16
Non-GAAP Reconciliation In thousands (except ratios) As of and for the three months ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Pre-Tax Pre-Provision ("PTPP") Income: Net income $ 5,650 $ 6,593 $ 4,053 $ 4,781 $ 4,239 Plus: Provision for income taxes 1,751 2,088 1,263 1,498 449 Plus: Provision for (recovery of) credit losses - - - (160) - PTPP income $ 7,401 $ 8,681 $ 5,316 $ 6,119 $ 4,688 PTPP Return on Average Assets: PTPP income $ 7,401 $ 8,681 $ 5,316 $ 6,119 $ 4,688 Average assets $ 1,828,037 $ 1,741,423 $ 1,660,060 $ 1,573,881 $ 1,522,735 PTPP return on average assets (1) 1.61% 1.98% 1.28% 1.58% 1.22% Operating Net Income: Net income $ 5,650 $ 6,593 $ 4,053 $ 4,781 $ 4,239 Less: Net gains (losses) on sale of securities 35 (70) 187 62 11 Less: Tax effect on sale of securities (9) 17 (46) (15) (3) Operating net income $ 5,624 $ 6,646 $ 3,912 $ 4,734 $ 4,231 Operating PTPP Income: PTPP income $ 7,401 $ 8,681 $ 5,316 $ 6,119 $ 4,688 Less: Net gains (losses) on sale of securities 35 (70) 187 62 11 Operating PTPP Income $ 7,366 $ 8,751 $ 5,129 $ 6,057 $ 4,677 Operating PTPP Return on Average Assets: Operating PTPP income $ 7,366 $ 8,751 $ 5,129 $ 6,057 $ 4,677 Average assets $ 1,828,037 $ 1,741,423 $ 1,660,060 $ 1,573,881 $ 1,522,735 Operating PTPP Return on average assets (1) 1.60% 1.99% 1.24% 1.56% 1.22% Operating Return on Average Asset: Operating net income $ 5,624 $ 6,646 $ 3,912 $ 4,734 $ 4,231 Average assets $ 1,828,037 $ 1,741,423 $ 1,660,060 $ 1,573,881 $ 1,522,735 Operating return on average assets (1) 1.22% 1.51% 0.95% 1.22% 1.11% (1) Annualized. 17
Non-GAAP Reconciliation In thousands (except per share data) As of and for lhe three months ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Tangible Book Vainer per Common Share (at period end): Total stockholders' equity (GAAP) $203.897 $201.918 $ 166.302 $170.425 $171.001 Le«: Intangible assets - > - - - Less: Preferred stock . 24.616 32.077 32,077 Tangible stockholders’ equity (non-GAAP) $ 203,897 $201,918 $ 141 686 $138,348 $138,924 Total shares issued and outstanding (at period-end): Class A common shares 19,991,753 18,767,541 3,889,469 3,889,469 3,889,469 Class B common shares - 1.224.212 1.224.212 1.224.212 1 224212 Total common shares outstanding 19991,753 19,991,753 5,113.681 5,113,681 5,113,681 Tangible book value per common share (non GAAP)$10.20 $1010 $27.71 J27 05 $27.17Operating Nel Income Available lo Common Stockholders: Net income (GAAP)$Les*: Preferred dividends Less: Exchange and redemption of preferred shares Net income (loss) available to common stockholders (GAAP) Add back Exchange and redemption of preferred shares Operating net income avail to common stock (non-GAAP): 1 $ 5.650 %6.593 $ 4,053 $ 4.781 $ 4,239 - 542 754 781 782 - $9.585 - - - 5,650 (83.534) 3,299 4,000 3,457 - 89.585 - - - 5,650 $6.051 $ 3,299$ 4.000 $ 3,457 Allocation of operating net income per common stock class: Class A common stock Class B common stock Weighted average shares outstanding: Class A common stock Basic Diluted Class B common stock Basic Diluted$ 5,650$18913,91419.023.686$5,598S2,509S3,042S2,629$ 453$"90S958$ 82815,121,46015,187.7296,121,0526,121,0523,8$9,4693.933,6366.121,0526.121,0523,889.4693,913.2796.121.05 2 6,121,0523,887,5123,911,3226,121,0526,121,052Diluted EPS:(1)(2)(3) Class A common stock Net income (loss) per diluted share (GAAP) $ 030 $ (5.11) S 0.64 $ 0.78 S 0.67 Add back Exchange and redemption of preferred shares # A S A # 5.48 - - - Operating net income per diluted share (non-GAAP)Class B common stock $ 0.30 $ 0.37 S 0.64 $ 0.78 $ 0.67 Net income (loss) per diluted share (GAAP) $ - $ (102) $ 0.13 $ 0.16 $ 0.14 Add back Exchange and redemption of preferred shares - 109 - - Operating net income per diluted share (non GAAP) $- $0.07 $0.13 $0.16 $0.14 (1) The Company before these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company. (2) For the quarter ended September 31, 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. (3) During the quarter ended December 31. 2021. the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting stock fee Class A voting common stock at a ratio of 5 to 1. In calculating net income (loss) per diluted share for the prior, 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 a as-converted basis 18
Non-GAAP Reconciliation In thousands (except ratios) Operating Net Income Available to Common Stockholders: Year Ended December 31, 2021 2022 Net income (GAAP) $ 21,077 $ 10,820 Less: Preferred dividends 2,077 3,127 Less: Exchange and redemption of preferred shares 89.585 • Net income (loss) available to common stockholders (GAAP) (70,585) 7,693 Add back: Exchange and redemption of preferred shares 89.585 - Operating net income avail, to common stock (non-GAAP),:> $ 19.000 $ 7,693 Allocation of operating net income per common stock class: Class A common stock $ 19.000 $ 5.851 Class B common stock s • $ 1,842 Weighted average shares outstanding: Class A common stock Basic 10,507,530 3,887,480 Diluted 10,567,833 3,911,290 Class B common stock Basic • 6,121,052 Diluted • 6,121.052 Diluted EPS:(1) <J> Class A common stock Net income (loss) per diluted share (GAAP) $ (6.72) $ 1.50 Add back: Exchange and redemption of preferred shares 8 53 . Operating net income per diluted share (non-GAAP) $ 1.81 $ 1.50 Class B common stock Net income (loss) per diluted share (GAAP) $ - $ 0.30 Add back: Exchange and redemption of preferred shares • _ Operating net income per diluted share (non-GAAP) $ • $ 0.30 1. The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company 2. During the year ended December 31.2021. the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting stock for Class A voting common stock at a ratio of 5 to 1. As such there are no issued and outstanding shares of Class B common stock for the year ended 2021. 19
Contact Information Lou de la Aguilera President, CEO & Director (305) 715-5186 laguilera@uscentury.com Rob Anderson Chief Financial Officer (305) 715-5393 rob.anderson@uscentury.com Investor Relations InvestorRelations@uscentury.com 20