1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM
__________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
__________________________
(Exact name of Registrant as Specified in Its Charter)
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of Incorporation)
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(IRS Employer
Identification No.)
,
,
(Address of Principal Executive Offices)
(Zip Code)
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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 2.02. Results of Operations and Financial Condition.
On April 28, 2022, USCB Financial Holdings, Inc. (the “Company”), issued a press release announcing its financial results for
the first quarter ended March 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and
is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall
not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange
Act.
Item 7.01 Regulation FD Disclosure.
As previously announced, at 9:00 a.m. ET on April 29, 2022, the Company will hold an earnings conference call to discuss its
financial performance for the quarter. A copy of the slides forming the basis of the presentation is being furnished as Exhibit 99.2 to this
Current Report on Form 8-K and is incorporated herein by reference. A copy of the slides has also been posted to the Company’s investor
relations website, located at
investors.uscenturybank.com
The information in this Item 7.01, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for
purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be
incorporated by reference into any filing under the Securities Act or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
USCB Financial Holdings, Inc.
By:
/s/ Robert Anderson
Name:
Robert Anderson
Title:
Chief Financial Officer
Date: April 28, 2022
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Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports First Quarter 2022 Results
MIAMI – April 28, 2022 – USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB)
, the holding company for U.S.
Century Bank, reported net income of $4.9 million or $0.24 per diluted share for the three months ended March 31, 2022, compared
with net income of $4.8 million or $0.78 and $0.16 per diluted share for Class A and Class B common stock, respectively, for the same
period in 2021. On December 21, 2021, the Company agreed to exchange all the outstanding shares of Class B common stock for Class
A common stock at a ratio of 5 to 1. As of December 31, 2021, the Company’s only class of securities issued and outstanding was Class
A common stock.
“Despite recent broad macroeconomic and geopolitical concerns, I am pleased with our first quarter financial results, which showed
continued growth in both our loan and deposit portfolios. We continue to employ excess liquidity to purchase securities and maximize
returns while maintaining pristine credit quality,” said Luis de la Aguilera, President and Chief Executive Officer (“CEO”).
During the first quarter of 2022, the Board of Directors (the “Board”) 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. As of March 31, 2022, the
Company had not repurchased any shares.
During the quarter ended March 31, 2022, the Company appointed the following three new Board members:
•
Ramon A. Rodriguez (appointed February 15, 2022) - A well-respected Certified Public Accountant in Florida with decades
of experience, currently serves as Chairman and CEO of Cable Insurance, a property and casualty insurer dedicated to the
commercial automotive market. Previously, he was CEO of Madsen Sapp Mena Rodriguez & Co. from 1971 until he retired
from public accounting in 2009. Mr. Rodriguez was a founder and board member of DME Corporation, a manufacturing
company in the defense and aerospace sector, from 1975 to 2009. He also served on the board of Republic Services, Inc., a
solid waste company listed on the NYSE, from 1999 to 2020 and is a past chairman of the board.
•
Robert E. Kafafian (appointed March 28, 2022) - A recognized banking industry leader in performance measurement and the
founder, Chairman and CEO of The Kafafian Group, Inc. He has a distinguished 40-year career consulting and advising more
than 500 financial institutions across the United States and has been instrumental in the design and development of a nationally
recognized bank profitability software product. Mr. Kafafian is a frequent speaker and writer on a variety of banking subjects
and is often quoted in banking periodicals. He teaches at numerous state, regional, and national banking schools.
•
Maria C. Alonso (appointed March 31, 2022) - A highly regarded business executive with a proven track record spanning more
than 25 years across banking, marketing, social responsibility, and community engagement, most recently served as the
President and CEO of United Way Miami, one of the region’s largest philanthropies, from 2017 through 2021. Her involvement
in community organizations has included: New World School of the Arts (past Executive Committee Chair), Leadership
Florida, International Women’s Forum, Greater Miami Chamber of Commerce (past Board Chair), Miami-Dade Beacon
Council (past One Community, One Goal Co-Chair), Camillus House, Miami Dade College Foundation, The Miami
Foundation, and Teach for America. Ms. Alonso is a recognized community leader having received numerous awards
celebrating her civic, business, and philanthropic contributions to the South Florida community.
Unless otherwise stated, all percentage comparisons in the bullet points below are calculated for the quarter ended March 31, 2022
versus the quarter ended March 31, 2021 and annualized where appropriate .
Profitability
•
Annualized return on average assets for the quarter ended March 31, 2022 was 1.03% compared to 1.23% for the first quarter of
2021.
•
Annualized return on average stockholders’ equity for the quarter ended March 31, 2022 was 9.75% compared to 11.30% for the
first quarter of 2021.
2
•
The efficiency ratio for the quarter ended March 31, 2022 increased to 58.88% compared to 58.64% for the first quarter of 2021.
•
Net interest margin decreased to 3.22% for the quarter ended March 31, 2022 compared to 3.35% for the first quarter of 2021.
•
Net interest income was $14.4 million for the quarter ended March 31, 2022, an increase of $1.9 million or 15.3% compared to the
first quarter of 2021. The increase was primarily driven by higher loan and investment income along with lower deposit costs.
Balance Sheet
•
Total assets were $2.0 billion at March 31, 2022, representing an increase of $333.9 million or 20.4 % from March 31, 2021.
•
Total deposits were $1. 7 billion at March 31, 2022, representing an increase of $309.1 million or 22.0%, from March 31, 2021.
•
Total shareholders’ equity was $192.0 million at March 31, 2022, representing an increase of $21.6 million or 12.7% from
March 31, 2021.
•
Total loans were $1.3 billion at March 31, 2022, representing an increase of $154.4 million or 14.0% from March 31, 2021.
Asset Quality
•
The allowance for credit losses was $15.1 million and $15.0 million as of March 31, 2022 and 2021, respectively.
•
The allowance for credit losses represented 1.20% of total loans at March 31, 2022 compared to 1.36% at March 31, 2021. The
decrease in coverage was primarily driven by reduced uncertainty around the economic impact of the COVID-19 pandemic on our
loan portfolio.
•
Non-performing loans to total loans was 0.00% at March 31, 2022 compared to 0.06% at March 31, 2021.
Non-interest Income and Non-interest Expense
•
Non-interest income totaled $1.9 million for the three months ended March 31, 2022
, a
decrease
of $
376 thousand or 16.2%
compared to the same period in 2021. The decrease was primarily driven by fewer loan sales resulting in gains.
•
Non-interest expense was $9.6 million for the three months ended March 31, 2022 compared to $8.7 million for the same period in
2021. The increase was primarily driven by higher salaries and employee benefits due to new hires, salary compensation, and
seasonal payroll taxes.
Capital
•
The Company and its wholly owned subsidiary, U.S. Century Bank (the “Bank”), exceeded all regulatory capital requirements and
remained significantly above “well-capitalized” guidelines. As of March 31, 2022,
total risk-based capital ratio for the Company
and the Bank was 14.49% and 14.41%, respectively.
Conference Call and Webcast
USCB Financial Holdings, Inc. (the “Company”), will host a conference call on Friday, April 29, 2022, at 9:00 a.m. Eastern Time to
discuss the Company’s unaudited financial results for the quarter ended March 31, 2022. To access the conference call, dial (844) 221-
2148 (domestically) or (929) 517-0937 (internationally) and use conference code 6069233.
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
.
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Forward-Looking Statements
This earnings release may contain statements 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 the
forthcoming implementation of the Current Expected Credit Losses (“CECL”) standard;
•
the effects of our lack of a diversified loan portfolio and concentration in the South Florida market, including the risks of geographic,
depositor, and industry concentrations, including our concentration in loans secured by real estate;
•
the concentration of ownership of our Class A common stock;
•
fluctuations in the price of our Class A common stock;
•
our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well
as growth through other means, such as future acquisitions;
•
inflation, interest rate, unemployment rate, market, and monetary fluctuations;
•
increased competition and its effect on the pricing of our products and services as well as our 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 in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”).
All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not
differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further,
forward-looking statements included in this earnings release are made only as of the date hereof, and we undertake no obligation to
update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk
factors described in the reports the Company filed or will file with the SEC and, for periods prior to the completion of the bank holding
company reorganization in December 2021, the Bank filed with the FDIC.
Non-GAAP Financial Measures
This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting
principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-
GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s
underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and
intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in
addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily
comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-
GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in
the exhibits to this earnings release.
You should assume that all numbers are unaudited unless otherwise noted.
4
Contacts:
Investor Relations
InvestorRelations@uscentury.com
Media Relations
Martha Guerra-Kattou
MGuerra@uscentury.com
5
USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
Three Months Ended March 31,
2022
2021
Interest income:
Loans, including fees
$
12,982
$
11,868
Investment securities
2,329
1,844
Interest-bearing deposits in financial institutions
31
16
Total interest income
15,342
13,728
Interest expense:
Interest-bearing deposits
16
14
Savings and money markets accounts
551
548
Time deposits
259
554
Federal Home Loan Bank advances
137
137
Total interest expense
963
1,253
Net interest income before provision for credit losses
14,379
12,475
Provision for credit losses
-
(160)
Net interest income after provision for credit losses
14,379
12,635
Non-interest income:
Service fees
900
889
Gain on sale of securities available for sale, net
21
62
Gain on sale of loans held for sale, net
334
964
Loan settlement
161
-
Other non-interest income
529
406
Total non-interest income
1,945
2,321
Non-interest expense:
Salaries and employee benefits
5,875
5,278
Occupancy
1,270
1,387
Regulatory assessment and fees
213
178
Consulting and legal fees
517
185
Network and information technology services
387
508
Other operating
1,350
1,141
Total non-interest expense
9,612
8,677
Net income before income tax expense
6,712
6,279
Income tax expense
1,858
1,498
Net income
4,854
4,781
Preferred stock dividend
-
781
Net income available to common stockholders
$
4,854
$
4,000
Allocation of net income per common stock class:
(1)
Class A
$
4,854
$
3,042
Class B
$
-
$
958
Per share information:
(1)
Class A common stock
(2)
Net income per share, basic
$
0.24
$
0.78
Net income per share, diluted
$
0.24
$
0.78
Class B common stock
Net income per share, basic
$
-
$
0.16
Net income per share, diluted
$
-
$
0.16
Weighted average shares outstanding:
Class A common stock
(2)
Basic
19,994,953
3,889,469
Diluted
20,109,783
3,913,279
Class B common stock
Basic
-
6,121,052
Diluted
-
6,121,052
(1) For the three months ended March 31, 2021, the allocation of net income available to common stockholders was based on the weighted average shares outstanding
per common share class to the total weighted average shares outstanding during the period. The income allocation is calculated using the weighted average shares
outstanding of Class B common stock on a as-converted basis (20% per share equivalent to Class A common stock).
(2) For the three months ended March 31, 2021, 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 2021.
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USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
Income Statement Data:
Net interest income
$
14,379
$
14,076
$
13,471
$
12,474
$
12,475
Provision for credit losses
-
-
-
-
(160)
Net interest income after provision for credit losses
14,379
14,076
13,471
12,474
12,635
Service fees
900
961
856
903
889
Gain (loss) on sale of securities available for sale, net
21
35
(70)
187
62
Gain on sale of loans held for sale, net
334
107
532
23
964
Gain on sale of other assets
-
983
-
-
-
Loan settlement
161
-
2,500
-
-
Other income
529
558
399
403
406
Total non-interest income
1,945
2,644
4,217
1,516
2,321
Salaries and employee benefits
5,875
5,634
5,313
5,213
5,278
Occupancy
1,270
1,267
1,192
1,411
1,387
Regulatory assessment and fees
213
93
317
195
178
Consulting and legal fees
517
539
357
373
185
Network and information technology services
387
268
358
332
508
Other operating
1,350
1,518
1,470
1,150
1,141
Total non-interest expenses
9,612
9,319
9,007
8,674
8,677
Net income before income tax expense
6,712
7,401
8,681
5,316
6,279
Income tax expense
1,858
1,751
2,088
1,263
1,498
Net income
4,854
5,650
6,593
4,053
4,781
Preferred stock dividend
-
-
542
754
781
Exchange and redemption of preferred shares
-
-
89,585
-
-
Net income (loss) available to common stockholders
$
4,854
$
5,650
$
(83,534)
$
3,299
$
4,000
Allocation of net income (loss) per common stock class:
(1)
Class A
$
4,854
$
5,650
$
(77,278)
$
2,509
$
3,042
Class B
$
-
$
-
$
(6,256)
$
790
$
958
Per share information:
Class A common stock
(2)
Net income (loss) per share, basic
$
0.24
$
0.30
$
(5.11)
$
0.65
$
0.78
Net income (loss) per share, diluted
$
0.24
$
0.30
$
(5.11)
$
0.64
$
0.78
Class B common stock
Net income (loss) per share, basic
$
-
$
-
$
(1.02)
$
0.13
$
0.16
Net income (loss) per share, diluted
$
-
$
-
$
(1.02)
$
0.13
$
0.16
Balance Sheet Data (at period-end):
Cash and cash equivalents
$
94,113
$
46,228
$
69,597
$
47,117
$
105,940
Securities available-for-sale
$
392,214
$
401,542
$
328,171
$
395,804
$
341,344
Securities held-to-maturity
$
122,361
$
122,658
$
99,866
$
-
$
-
Total securities
$
514,575
$
524,200
$
428,037
$
395,804
$
341,344
Loans held for investment
(3)
$
1,258,388
$
1,190,081
$
1,176,412
$
1,145,095
$
1,103,981
Allowance for credit losses
$
(15,074)
$
(15,057)
$
(14,900)
$
(14,848)
$
(15,009)
Total assets
$
1,967,252
$
1,853,939
$
1,755,011
$
1,667,005
$
1,633,359
Non-interest-bearing deposits
$
656,622
$
605,425
$
570,091
$
555,993
$
516,550
Interest-bearing deposits
$
1,056,672
$
984,954
$
914,498
$
882,783
$
887,681
Total deposits
$
1,713,294
$
1,590,379
$
1,484,589
$
1,438,776
$
1,404,231
Federal Home Loan Bank advances and other borrowings
$
36,000
$
36,000
$
36,000
$
36,000
$
36,000
Total liabilities
$
1,775,213
$
1,650,042
$
1,553,093
$
1,500,703
$
1,462,934
Total stockholders' equity
$
192,039
$
203,897
$
201,918
$
166,302
$
170,425
Capital ratios:
(4)
Leverage ratio
9.47%
9.55%
9.69%
7.91%
8.57%
Common equity tier 1 capital
13.35%
13.70%
13.85%
9.24%
9.47%
Tier 1 risk-based capital
13.35%
13.70%
13.85%
11.44%
12.54%
Total risk-based capital
14.49%
14.92%
15.10%
12.69%
13.80%
(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).
(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.
(4) The Bank Holding Company was formed during the quarter ended December 31, 2021. As such, the capital ratios for Q1 2022 and Q4 2021 are for the Bank
Holding Company and for Q3 2021 and prior are for the Bank.
7
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
Average balance sheet data:
Cash and cash equivalents
$
99,911
$
87,819
$
116,622
$
108,028
$
86,157
Securities available-for-sale
$
385,748
$
374,589
$
346,407
$
382,990
$
334,723
Securities held-to-maturity
$
122,381
$
114,108
$
51,238
$
-
$
-
Total securities
$
508,129
$
488,697
$
397,645
$
382,990
$
334,723
Loans held for investment
(1)
$
1,211,432
$
1,158,755
$
1,144,275
$
1,088,492
$
1,071,782
Total assets
$
1,913,484
$
1,828,037
$
1,741,423
$
1,660,060
$
1,573,881
Interest-bearing deposits
$
1,023,844
$
958,241
$
912,330
$
896,271
$
861,300
Non-interest-bearing deposits
$
626,400
$
603,735
$
564,928
$
535,894
$
482,376
Total deposits
$
1,650,244
$
1,561,976
$
1,477,258
$
1,432,165
$
1,343,676
Federal Home Loan Bank advances and other borrowings
$
36,011
$
36,000
$
36,000
$
36,000
$
36,000
Total liabilities
$
1,711,624
$
1,625,675
$
1,546,414
$
1,493,129
$
1,402,305
Total stockholders' equity
$
201,860
$
202,362
$
195,009
$
166,931
$
171,576
Performance ratios:
Return on average assets
(2)
1.03%
1.23%
1.50%
0.98%
1.23%
Return on average equity
(2)
9.75%
11.08%
13.41%
9.74%
11.30%
Net interest margin
(2)
3.22%
3.19%
3.19%
3.14%
3.35%
Non-interest income to average assets
(2)
0.41%
0.57%
0.96%
0.37%
0.60%
Efficiency ratio
(3)
58.88%
55.74%
50.92%
62.00%
58.64%
Loans by type (at period end):
(4)
Residential real estate
$
204,317
$
201,359
$
201,124
$
213,575
$
231,554
Commercial real estate
$
782,072
$
704,988
$
693,469
$
673,944
$
650,762
Commercial and industrial
$
134,832
$
146,592
$
137,486
$
155,440
$
174,546
Foreign banks
$
63,985
$
59,491
$
58,839
$
62,042
$
45,659
Consumer and other
$
73,765
$
79,229
$
87,515
$
43,979
$
5,627
Asset quality data:
Allowance for credit losses to total loans
1.20%
1.27%
1.27%
1.30%
1.36%
Allowance for credit losses to non-performing loans
- %
1,265%
82,778%
74,240%
2,214%
Non-accrual loans less non-accrual TDRs
-
1,190
-
-
228
Non-accrual TDRs
-
-
18
20
450
Loans- over 90 days past due and accruing
-
-
-
-
-
Total non-performing loans
(5)
-
1,190
18
20
678
Non-performing loans to total loans
- %
0.10%
0.00%
0.00%
0.06%
Non-performing assets to total assets
- %
0.06%
0.00%
0.00%
0.04%
Net charge-offs (recoveries of) to average loans
(2)
(0.01)%
(0.05)%
(0.02)%
0.06%
(0.03)%
Net charge-offs (recovery of) credit losses
(17)
(157)
(51)
160
(83)
Interest rates and yields:
(2)
Loans
4.35%
4.32%
4.29%
4.19%
4.43%
Investment securities
1.85%
1.81%
1.86%
2.04%
2.19%
Total interest-earning assets
3.43%
3.41%
3.43%
3.41%
3.69%
Deposits
0.20%
0.21%
0.22%
0.26%
0.34%
Borrowings and repurchase agreements
1.54%
1.51%
1.52%
1.52%
1.52%
Total interest-bearing liabilities
0.37%
0.38%
0.40%
0.45%
0.57%
Other information:
Full-time equivalent employees
190
187
184
183
186
(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.
8
USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended March 31,
2022
2021
Average
Balance
Interest
Yield/Rate
(1)
Average
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans
(2)
$
1,211,432
$
12,982
4.35%
$
1,071,782
$
11,868
4.43%
Investment securities
(3)
510,257
2,329
1.85%
337,434
1,844
2.19%
Other interest-earnings assets
90,137
31
0.14%
78,568
16
0.08%
Total interest-earning assets
1,811,826
15,342
3.43%
1,487,784
13,728
3.69%
Non-interest-earning assets
101,658
86,097
Total assets
$
1,913,484
$
1,573,881
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing demand deposits
$
64,436
16
0.10%
$
44,549
14
0.13%
Saving and money market deposits
736,134
551
0.30%
568,595
548
0.39%
Time deposits
223,274
259
0.47%
248,156
554
0.91%
Total interest-bearing deposits
1,023,844
826
0.33%
861,300
1,116
0.53%
Borrowings and repurchase agreements
36,011
137
1.54%
36,000
137
1.52%
Total interest-bearing liabilities
1,059,855
963
0.37%
897,300
1,253
0.57%
Non-interest-bearing demand deposits
626,400
482,376
Other non-interest-bearing liabilities
25,369
22,629
Total liabilities
1,711,624
1,402,305
Stockholders' equity
201,860
171,576
Total liabilities and stockholders' equity
$
1,913,484
$
1,573,881
Net interest income
$
14,379
$
12,475
Net interest spread
(4)
3.07%
3.13%
Net interest margin
(5)
3.22%
3.35%
(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.
9
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
Pre-Tax Pre-Provision ("PTPP") Income:
Net income
$
4,854
$
5,650
$
6,593
$
4,053
$
4,781
Plus: Provision for income taxes
1,858
1,751
2,088
1,263
1,498
Plus: Provision for (recovery of) credit losses
-
-
-
-
(160)
PTPP income
$
6,712
$
7,401
$
8,681
$
5,316
$
6,119
PTPP Return on Average Assets:
PTPP income
$
6,712
$
7,401
$
8,681
$
5,316
$
6,119
Average assets
$
1,913,484
$
1,828,037
$
1,741,423
$
1,660,060
$
1,573,881
PTPP return on average assets
(1)
1.42%
1.61%
1.98%
1.28%
1.58%
Operating Net Income:
Net income
$
4,854
$
5,650
$
6,593
$
4,053
$
4,781
Less: Net gains (losses) on sale of securities
21
35
(70)
187
62
Less: Tax effect on sale of securities
(5)
(9)
17
(46)
(15)
Operating net income
$
4,838
$
5,624
$
6,646
$
3,912
$
4,734
Operating PTPP Income:
PTPP income
$
6,712
$
7,401
$
8,681
$
5,316
$
6,119
Less: Net gains (losses) on sale of securities
21
35
(70)
187
62
Operating PTPP Income
$
6,691
$
7,366
$
8,751
$
5,129
$
6,057
Operating PTPP Return on Average Assets:
Operating PTPP income
$
6,691
$
7,366
$
8,751
$
5,129
$
6,057
Average assets
$
1,913,484
$
1,828,037
$
1,741,423
$
1,660,060
$
1,573,881
Operating PTPP Return on average assets
(1)
1.42%
1.60%
1.99%
1.24%
1.56%
Operating Return on Average Assets:
Operating net income
$
4,838
$
5,624
$
6,646
$
3,912
$
4,734
Average assets
$
1,913,484
$
1,828,037
$
1,741,423
$
1,660,060
$
1,573,881
Operating return on average assets
(1)
1.03%
1.22%
1.51%
0.95%
1.22%
(1) Annualized.
10
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity (GAAP)
$
192,039
$
203,897
$
201,918
$
166,302
$
170,425
Less: Intangible assets
-
-
-
-
-
Less: Preferred stock
-
-
-
24,616
32,077
Tangible stockholders' equity (non-GAAP)
$
192,039
$
203,897
$
201,918
$
141,686
$
138,348
Total shares issued and outstanding (at period-end):
(2)
Class A common shares
20,000,753
19,991,753
18,767,541
3,889,469
3,889,469
Class B common shares
-
-
1,224,212
1,224,212
1,224,212
Total common shares issued and outstanding
20,000,753
19,991,753
19,991,753
5,113,681
5,113,681
Tangible book value per common share (non-GAAP)
$
9.60
$
10.20
$
10.10
$
27.71
$
27.05
Operating net income available to common stockholders:
(1)
Net income (GAAP)
$
4,854
$
5,650
$
6,593
$
4,053
$
4,781
Less: Preferred dividends
-
-
542
754
781
Less: Exchange and redemption of preferred shares
-
-
89,585
-
-
Net income (loss) available to common stockholders (GAAP)
4,854
5,650
(83,534)
3,299
4,000
Add back: Exchange and redemption of preferred shares
-
-
89,585
-
-
Operating net income avail. to common stock (non-GAAP)
$
4,854
$
5,650
$
6,051
$
3,299
$
4,000
Allocation of operating net income per common stock class:
Class A common stock
$
4,854
$
5,650
$
5,598
$
2,509
$
3,042
Class B common stock
$
-
$
-
$
453
$
790
$
958
Weighted average shares outstanding:
Class A common stock
Basic
19,994,953
18,913,914
15,121,460
3,889,469
3,889,469
Diluted
20,109,783
19,023,686
15,187,729
3,933,636
3,913,279
Class B common stock
Basic
-
-
6,121,052
6,121,052
6,121,052
Diluted
-
-
6,121,052
6,121,052
6,121,052
Diluted EPS:
(3) (4)
Class A common stock
Net income (loss) per diluted share (GAAP)
$
0.24
$
0.30
$
(5.11)
$
0.64
$
0.78
Add back: Exchange and redemption of preferred shares
-
-
5.48
-
-
Operating net income per diluted share (non-GAAP)
$
0.24
$
0.30
$
0.37
$
0.64
$
0.78
Class B common stock
Net income (loss) per diluted share (GAAP)
$
-
$
-
$
(1.02)
$
0.13
$
0.16
Add back: Exchange and redemption of preferred shares
-
-
1.09
-
-
Operating net income per diluted share (non-GAAP)
$
-
$
-
$
0.07
$
0.13
$
0.16
(1) The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company.
(2) During the quarter ended September 30, 2021, 47,473 shares of Class C preferred stock and 11,061,552 shares of Class D preferred stock converted into 10,278,072
shares of Class A common stock. Additionally, the Bank closed on the initial public offering of its Class A common stock on July 27, 2021, in which it issued
4,600,000 shares of Class A common stock. As such, the total shares issued and outstanding of Class A common stock was 18,767,541 shares at September 30, 2021.
(3) During the quarter ended September 30, 2021, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares
outstanding would have been antidilutive.
(4) 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.
Exhibit 99.2USCB FINANCIAL HOLDINGSFirst Quarter 2022Earnings PresentationApril 29, 20221
Forward
Looking Statements
This presentation may contain statements 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 amend
ed. 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 st
atements. These forward
looking statements include statements related to our projected growth, anticipated future financial performance, and manageme
nt’s long
-
term performance goals, as well as statements relating to the anticipated effects on results of o
perations and financial condition from expected developments or events, or business and growth strategies, including anticipa
ted internal growth.
These forward
looking statements involve significant risks and uncertainties that could cause our actual resul
ts to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not lim
ited to:
the strength of the United States economy in general and the strength of the local economies in which we conduct operati
ons;
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 ra
te 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 a
nd 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 ch
anges in accounting principles, policies, practices or guidelines, including the effects of the forthcoming implementation of
the
Current Expected Credit Losses (“CECL”)
tandard;
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 concent
ration in loans secured by
real estate;
the concentration of ownership of our Class A common stock;
fluctuations in the price o
f our Class A common stock;
our ability to fund or access the capital markets at attractive rates and terms and manage our growt
h, both organic growth as well as growth through other means, such as future acquisitions;
inflation, interest rate,
unemployment rate, market, and monetary fluctuations;
increased competition and its effect on the pricing of our products and services as well as our 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 in this presentation 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 expectati
ons. Therefore, you are cautioned not to place undue reliance on any forward
-
looking statements. Further, forward
-
looking statemen
ts included in this presentation are made only as of the date hereof, and we undertake no obligation to update or revise any
forward
look
ing statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurr
ence 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 31, 2021, the Bank filed with the FDIC.NonGAAP Financial MeasuresThis 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 nonGAAP 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 asan alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to nonGAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these nonGAAP measures to the most directly comparable GAAP measures can be found in the ‘NonGAAP Reconciliation Tables’ included in the presentation.You should assume that all numbers are unaudited unless otherwise noted.2
Q1 2022 Highlights
Capital/
Credit
Credit metrics rema
in pristine.
There were no loans classified as nonperforming.
ACL coverage ratio was 1.20% in line with pre
pandemic levels.
On January 24, 2022 the Board of Directors approved a share repurchase program for 750,000 shares of Class A common stock. Th
ere we
re no repurchases in the quarter.
Recovered $161k in default interest from a prior loan customer of the Bank.
Profitability
Net income was $4.9 million or $0.24 per diluted share.
Income tax expenses increased due to a one
time adjustment to DTA of $300k.
ROAA was 1.03% and ROAE was 9.75%.
Efficiency ratio was 58.88%.
NIM was 3.22% and NII was $14.4 million, up $1.9 million or 15.3% compared to first quarter 2021.
Growth
Deployed cash by growing loans and purchasing securities.
Average deposits increased by
$306.6 million or 22.8% compared to first quarter 2021.
Average loans excluding PPP increased by $217.4 million or 22.7% compared to first quarter 2021.
Financial Results
In thousands (except per share data)
Balance
Sheet
(EOP)
Income
Statement
Q1 2022 Q4 2021 Q1 2021
Total Securities
$514,575
$524,200
$341,344
Total Loans
( $1,258,388
$1,190,081
$1,103,981
Total Assets
$1,967,252
$1,853,939
$1,633,359
Total Deposits
$1,713,294
$1,590,379
$1,404,231
Total Equity
$192,039
$203,897
$170,4
25
Net Interest Income
$14,379
$14,076
$12,475
Non
interest Income $1,945
$2,644
$2,321
Revenue
$16,324
$16,720
$14,796
Provision for Credit Losses
$0
($160)
Non
interest Expense $9,612
$9,319
$8,677
Net Income
$4,854
$5,650
$4,781
Net Income
available to common
s stockholders
$4,854
$5,650
$4,000
Diluted Earning Per Share (EPS)
Class A Common Stock
$0.24
$0.30
$0.78
Class B Common Stock
$0.00
$0.00
$0.16
(1)
Loan amounts include deferred fees/costs.
(2)
See footnote disclosure in the Non G
AAP table for common stock activity (redemption and exchange of preferred stock, IPO,
and exchange of Class B common stock) which impacted diluted EPS for Q1’22 and Q4’21.
Key Performance Indicators
Q1 2022
Q4 2021
Q1 2021
Capital/
Credit
Tangible Common Equity/Tangible Assets(1)
9.76%
11.00%
8.47%
Total Risk Based Capital (2)
14.49%
14.92%
13.80%
NCO/Avg Loans (3)
-
0.01%
0.05%
0.03%
NPA/Assets
0.00%
0.06%
0.04%
Allowance Credit Losses/Loans
1.20%
1.27%
1.36%
Profitability
Return On Avera
ge Assets (ROAA) (2)
1.03%
1.23%
1.23%
Return On Average Equity (ROAE) (2)
9.75%
11.08%
11.30%
Net Interest Margin (2)
3.22%
3.19%
3.35%
Efficiency Ratio
58.88%
55.74%
58.64%
PTPP ROAA (1)(2)
1.42%
1.61%
1.58%
In thousands (except for TBV/share)
Growth
Total Assets (EOP)
$1,967,252
$1,853,939
$1,633,359
Total Loans (EOP)
$1,258,388
$1,190,081
$1,103,981
Total Deposits (EOP)
$1,713,294
$1,590,379
$1,404,231
Tangible Book Value/Share (1)
$9.60
$10.20
$27.05
(1) Non
-
GAAP Financial Measures. TBV/Share
for Q1’22 and Q4’21, see footnote disclosure in the Non
-
GAAP table for common stock activity (redemption and exchange of preferred stock, IPO, and exchange of Class B common stock)
which impacted TBV/share.
(2) Bank Holding Company was created in Q4 2021.
As such, the capital ratios for Q1 2022 and Q4 2021 are for the Bank Holding Company while Q1 2021 is for the Bank only.
(2) Annualized.
Loan PortfolioIn millions$1,200$1,072$1,088$1,144$1,159$1,211$1,100$113$99$73$51$35 $1,000 $359 $984$1,071$118$1,176$900 $800 $700$600Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022Loans (Excl PPP)PPP LoansCommentaryTotal average loans excluding PPP loans increased $68.9 million or 25.2% annualized compared to prior quarter and $217.4 million or 22.7% compared to first quarter 2021.Loan yields up slightly from prior quarters with the loan coupon up 12bps from first quarter 2021 and 8bps from prior quarter PPP loans was $34.9 million in the first quarter 2022, a decrease of $77.7 million from the first quarter 2021.Loan Yields5.00% 4.30%1.90%4.29%4.32%4.35% 4.50%0.48%0.28%0.32% 0.33%0.28%4.00%3.90%9.10%3.97%3.99%4.07%3.50% 3.00%2.50%2.00%1.50%1.00% 0.50%0.00%Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022
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)Q1 2022Q4 2021Q1 2021PreTax Income$6,712$7,401$6,279Net Income$4,854$5,650$4,781Average Assets$1,913,484 $1,828,037$1,573,881 ROAA (1)1.03%1.23%1.23%PPP Loansof whichPPP Income$1,001$978 $1,477Unrealized PPP Fees EOP$590$1,506$3,131PPP Balance EOP$24,646$42,424 $113,949PPP AVG. Balance$34,901$51,098$112,625(1) Annualized.
Deposit PortfolioDeposits (AVG) In millions$1,800 $1,344$1,432$1,477$1,562$1,650$1,600$248$236$229$228$223 $1,400$569$608$628$674$736$1,200$45$52$55$56$65$1,000$482$536$565$604$626$800 $600$400$200$0Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Noninterest bearing depositsInterestbearing demand depositsMoney market and savingsTiem deposits Deposit Cost (1)0.25% 0.25%0.25%0.25%0.34% 0.26%0.22%0.21%0.20%Q1 2021Q2 2021Q3 2021 Q4 2021 Q1 2022 Deposit CostsFed Funds Rate (upper bound)CommentaryAverage deposits increased $88.2 million or 22.9% annualized compared to prior quarter and $306.6 million or 22.8% compared to first quarter 2021. No wholesale deposits.DDA averagedeposits grew $22.4 million or 15.2% annualized compared to prior quarter and $144.0 million or 29.9% compared to first quarter 2021.DDA balances comprise 38.0% of total deposits at March 31, 2022. 14 bps decrease in deposit cost compared to first quarter 2021.(1) Annualized.
Net Interest Margin Net Interest Income/Margin (1)In thousands (except ratios)$16,0003.50%3.14%3.19%3.19% 3.22%$14,0003.19%3.10% 3.08%3.06%3.05%$12,000 $12,475$12,474$13,471$14,076$14,379$10,000 $8,000 $6,000 $4,000 $2,000 Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Net Interest IncomeNIMNIM excluding PPP Loans Interest Earning Assets Mix (AVG) 100%5%7%6%5%5%90%23%24%24%28%28% 80%8%6% 5%3%2%70%64%63%65%64%65% 60%50%40%30%20% 10%0%Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Total Loans (excluding PPP loans)PPP LoansInvestment SecuritiesCash Balances & EquivalentsCommentary Net interest income increased by $303K or 8.7% annualized compared to last quarter and $1.9 million or 15.3% compared to first quarter 2021.NII growth driven by lower deposit cost and higher interest income generated by a larger loan and investment portfolio.NIM impacted by shift in balance sheet mix. Cash balances and securities make up 33.1% of total interest earning assets in the first quarter 2022. (1) Annualized.9
Interest Rate SensitivityLoan Portfolio Repricing Profileby Rate TypeHybrid ARM7%Variable Rate51%Fixed Rate42%25%54%21%Loan Repricing Schedule
Variable/Hybrid Rate Loans36%46%5% 13%yrs 12 yrs 23 yrs >3 yrsCMTPrimeLiborStatic NII Simulation Year 1 & 2$6,000$5,000$4,000$3,000 $2,0001.80%2.00%4.16% 7.90%$1,000$704$1,311$2,534$4,814 100200100 200Year 1Year 2Net Interest Income (in '000)Changes in NII (%)As of 3/31/2210
Non
interest Income
In thousands (except ratios)
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Service fees
$900
$961
$856
$903
$889
Gain (loss) on sale of securities available for sale
21
35
(70)
187
Gain on sale of lo
ans held for sale
334
107
532
23
964
Gain on sale of other assets
983
Loan settlement
161
2,500
Other income
529
558
399
403
406
Total non
interest income
$1,945
$2,644
$4,217
$1,516
$2,321
Average total assets
$1,913,484
$1,828,037
$1,741,423
$1,660,060
$1,573,881
Non
interest income / Average assets (1)
0.41%
0.57%
0.96%
0.37%
0.60%
Revenue
$16,324
$16,720
$17,688
$13,990
$14,796
Non
interest income as % of revenue
11.91%
15.81%
23.85%
10.84%
15.69%
Commentary
$161k default interest
recovery from a prior loan customer of the Bank.
Gain on sale of loans up from prior quarter due to SBA 7a activity.
(1) Annualized.
11
Non
interest Expense
In thousands (except ratios and FTE)
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Salaries and
employee benefits
$5,875
$5,634
$5,313
$5,213
$5,278
Occupancy
1,270
1,267
1,192
1,411
1,387
Regulatory assessment and fees
213
93
317
195
178
Consulting and legal fees
517
539
357
373
185
Network and information technology services
387
268
358
332
508
Other operating
1,350
1,518
1,470
1,150
1,141
Total non
interest expenses
$9,612
$9,319
$9,007
$8,674
$8,677
Efficiency ratio
58.88%
55.74%
50.92%
62.00%
58.64%
Average total assets
$1,913,484
$1,828,037
$1,741,423
$1,660,060
$1,573,881
Non
interest expens
e / Average assets (1)
2.04%
2.02%
2.05%
2.10%
2.24%
Full
time equivalent employees
190
187
184
183
186
Commentary
Salaries and employee benefits increased primarily due to new hires, increases in salary compensation, and seasonal increase
in payroll taxes
3 new hires were revenue producers.
Consulting and legal fees contains $181k of one
time expense related to the formation of the bank holding company.
Absent this one
time cost, the efficiency ratio would have been 57.78%.
(1) Annualized.
12
Business Verticals
EOP (in millions)
PCG
(1)
HOA
(2)
BA
(3)
Global
Yachts
Deposits
Q1 2022
$149
$74
$141
Q4 2021
$130
$68
$154
Q1 2021
$117
$79
$137
Loans
Q1 2022
$62
$40
$67
$68
Q4 2021
$46
$39
$62
$80
Q1 2021
$29
$43
$46
$0
(1) JA/PCG: Jurist
Advantage/Private Client Group.
(2) HOA: Homeowners Association.
(3) Does not include PPP Loans.
Asset Quality
Allowance for Credit Losses
In thousands (except ratios)
$15,100
5.10%
1.40%
1.33%
1.31%
2.20%
$15,050
1.36%
1.30%
1.27%
1.27%
1.20%
$15,0
00
$15,009
$14,848
$14,900
$15,057
$15,074
$14,950
$14,900
$14,850
$14,800
$14,750
$14,700
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Allowance for credit loss
ACL/Total loans
ACL/Total loans excluding PPP loans
Commentary
ACL coverage ratio is at 1.20% or 1.22% excluding PPP loans, in line with pre
pandemic levels.
No loans classified as non
performing.
No OREOs.
CECL modeling progressing as planned; initial results expected in Q2.
Non
-
performing Loans
In thousands (except
ratios)
$1,400 $678 $20 $1,190 $0 $1,200 0.06% 0.00% $18 0.10% 0.00% $1,000 $228 0.00% $1,190 $800 $450 $600 $400 $200 $0 Q1 2021 Q2
2021 Q3 2021 Q4 2021 Q1 2022 Non
accrual TDRs Non
accrual loans less non
accrual TDRs Non
performing loans to total loans
14
Capital Capital Ratios Q1 2022 Q4 2021 Q1 2021 WellCapitalized Leverage Ratio 9.47% 9.55% 8.57% 5.00% TCE/TA 9.76% 11.00% 8.47% NA Tier 1 Risk Based Capital 13.35% 13.70% 12.54% 8.00% Total Risk Based Capital 14.49% 14.92% 13.80% 10.00% Commentary All capital ratios remain significantly above “well capitalized” guidelinesOn January 24, 2022, the Board of Directors approved a share repurchase program for 750,000 shares of Class A common stock. There were no repurchases in the quarter.Q1 2022 EOP Shares outstanding: Class A Common Stock: 20,000,753 (1) Bank Holding Company was created in Q4 2021. As such, the capital ratios for Q1 2022 and Q4 2021 are for the Bank HoldingCompany while Q1 2021 is for the Bank only.(2) NonGAAP. 15
Takeaways Leading Franchise Located in one of the Most Attractive Banking Markets in Florida and the U.S. Experienced and Tested ManagementTeam Robust Organic Growth Low Risk, Commercially Oriented Loan Portfolio Strong Asset Quality, with Minimal Chargeoffs Experienced Since Recapitalization Strong Profitability, with Pathway For Future Enhancement Identified Core Funded Deposit Base with 38.3% NonInterestBearing Deposits (EOP) Balanced Liquidity Profile –73.4% Loan / Deposit Ratio to Support Future Loan Deployment16
Non
GAAP Reconciliation In thousands (except ratios) 3/31/2022 Pre
Tax Pre
Provision ("PTPP") Income: Net income$ 4,854 Plus: Provision for income taxes 1,858 Plus: Provision for (recovery, of) credit
losses
PTPP income$ 6,712 PTPP Return on Aver
age Assets: PTPP income$ 6,712 Average assets$ 1,913,484 PTPP return on average assets 'I; 1.42% Operating Net Income: Net in
come$ 4854 Less: Net gains (loss es) on sale of securities 21 Less: Tax effect on sale of securities (5) Operating net income
$ 4.S
38 Operating PTPP Income: PTPP income$ 6,712 Less: Net gains (losses) on sale of securities 21 Operating PTPP Income $ 6,691
Operating PTPP Return on Average Assets: Operating PTPP income$ 6,691 Average assets$ 1,913,484 Operating PTPP Return on aver
age as
sets;1; 1.42% Operating Return on Average Assets: Operating net income$ 4,83S Average assets$ 1,913,484 Operating return on a
verage assets '1; 1.03% As of or for the three months ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 S 5,650$ 6,593$ 4,053$ 4
,781
1,751 2,088 1263 1,498 : : : QM S 7,401 $$,6S1$ 5,316$ 6,119 S 7,401$ 8,681$ 5216$ 6,119 S 1,828,037$ 1,741,423$ 1,660,060$ 1
,573,881 1.61% 1.98% 1.28% 1.58% s 5,650 S 6,593 S 4,053 S 4,781 35 (70) 187 62 2L 17 &L Q5) S 5.624 S 6.646 S 3.912 S 4.734
S 7,40
1$$,6S1$ 5216$ 6,119 35 (70)_ 187 62 S 7,366$ 8,8751 $ 5,129$ 6,057 S 7,366$ 8,751$ 5,129$ 6,057 S 1,828,037$ 1,741,423$ 1,66
0,060$ 1,573,881 1.60% 1.99% 1.24% 1.56% S 5,624$ 6,646$ 3,912$ 4,734 S 1,828,037$ 1,741,423$ 1,660,060$ 1,5738SI 1.22% 1.51%
0.95%
1.22% (1) Annualized 17
Non
GAAP Reconciliation In thousands (except per share data) As of and for the three mouths ended /I
\
3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Tangible Book Value per Common Share (at period
end):' Total stockholders
' equity (GAAP) $ 192,039 $ 203,897 $ 201,918 $ 166,302 $ 170,425 Less: Intangible assets _ _ _ _ _ Less: Preferred stock . .
. 24.616 32.077 Tangible stockholders' equity (non
GAAP) $ 192,039 $ 203,897 $ 201,918 $ 141,686 $ 138,34S Total shares issued and
outstanding (at period
end): (?> Class A common shares 20,000,753 19,991,753 18,767,541 3,SS9,469 3,889,469 Class B common shares _ _ 1224212 1224,2
12 1224,212 Total common shares issued and outstanding 20,000,753 19,991,753 19,991,753 5,113,681 5,113,681
Tangible book value per common share (non
GAAP) $ 9.60 $ 1020 $ 10.10 $ 27.71 $ 27.05 Operating Net Income Available to Common Stockholders:1,1 Net income (GAAP) $ 4,8
54 $ 5,650 $ 6,593 $ 4,053 $ •
« CO r
~
T Less: Preferred dividends 542 754 781 Less: E
xchange and redemption of preferred shares _ _ 89.5S5 _ _ Net income (loss) available to common stockholders (GAAP) 4,854 5,6
50 (83,534) 3,299 4,000 Add back: Exchange and redemption of preferred shares _ _ S9.5S5 _ _ Operating net income avail, to c
ommon
stock (non
GAAP) $ 4,854 $ 5,650 $ 6,051 $ 3,299 $ 4,000 Allocation of operating net income per conation stock class: Class A common sto
ck $ 4,854 $ 5,650 $ 5,598 $ 2,509 $ 3,042 Class B common stock $ $ $ 453 $ 790 $ 958 Weighted average shares outstandin
g: Class A common stock Basic 19,994,953 18,913,914 15,121,460 3,889,469 3,889,469 Diluted 20.109.783 19.023.6S6 15.187.729 3
.933.636 3.913.279 Class B common stock Basic _ _ 6,121,052 6,121,052 6,121,052 Diluted
6,121,052 6,121,052 6,121,052 Diluted E
PS:<7> <3) <4> Class A common stock Net income (loss) per diluted share
(GAAP) $ 024 $ 030 $ (5.11) $ 0.64 $ 0.78 Add back: Exchange and redemption of preferred shares 5.48 Operating net income per diluted share (nonGAAP) $ 024 $ 030 $ 037 $ 0.64 $ 0.78 Class B common stock Net income (loss) per diluted share (GAAP) $ $ _ $ (1.02) $ 0.13 $ 0.16 Add back: Exchange and redemption of preferred shares _ _ 1.09 _ _ Operating net income per diluted share (nonGAAP) $ $ $ 0.07 $ 0.13 $ 0.16 1. The Company believes these nonGAAP measurements are a key indicator of die ongoing earnings power of die Company 2. During the quarter ended September 30.2021.47.473 shares of Class C preferred stock and 11.061,552 shares of Class D preferred stock converted into 1027S,072 shares of Class A common stock. Additionally, die Bank closed on die initial public offering of its Class A common stock in July 27,2021. in which it issued 4.600,000 shares of Class A common stock. As such, die total shares issued and outstanding of Class A common stock was 18,767,541 shares at September 30,2021. 3. For die 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 beenantidilutive. 4. During the quarter ended December 31,2021, die Company entered into agreements with die Class B shareholdersto exchange all outstanding Class B nonvoting 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, die allocation of operating net income available to common stockholders was base don 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 die weighted average shares outstanding of Class B common stock on asconverted basis. 18
Contact Information Lou de la AguileraPresident, CEO & Director(305) 7155186 laguilera@uscentury.com Rob AndersonChief Financial Officer (305) 7155393 rob.anderson@uscentury.com Investor Relations InvestorRelations@uscentury.com19