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)
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
,
,
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s Telephone Number, Including Area Code: (
)
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)
☐
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:
Title of each class
Trading
Symbol(s)
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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).
Emerging growth company
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.
2
Item 2.02. Results of Operations and Financial Condition.
On April 25, 2024, USCB Financial Holdings, Inc. (the “Company”) issued a press release announcing its financial results for
the quarter ended March 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (“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 except as expressly set forth by specific reference in such filing to this Form 8-K.
Item 7.01. Regulation FD Disclosure.
As previously announced, at 11:00 a.m. ET on April 26, 2024, the Company will hold an earnings conference call to discuss
its financial performance for the quarter ended March 31, 2024. A copy of the slides forming the basis of the presentation is being
furnished as Exhibit 99.2 to this 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 Exhibit 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 except as set forth by specific reference in such filing to this Form
8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
99.1
99.2
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 25, 2024
1
Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Diluted EPS of $0.23 for Q1 2024 and announces adoption of new 500,000
share repurchase program
MIAMI, FL – April 25, 2024 – USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB)
, the holding company for U.S. Century Bank (the “Bank”),
reported net income of $4.6 million or $0.23 per diluted share for the three months ended March 31, 2024, compared with net income of $5.8 million or $0.29 per diluted
share for the same period in 2023.
“We are pleased to report a robust start to the year, marked by a strong increase in deposits of $165.7 million from the close of 2023. This achievement reflects our diligent
execution of strategic plans emphasizing organic growth, including business and retail banking initiatives to deepen existing relationships, new production hires, and
innovative deposit-aggregating business verticals,” said Luis de la Aguilera, Chairman, President, and CEO. The growth in deposits continues to bolster our capacity for
safe and sound lending activities, delivering accretive quarter-over-quarter improvement in average loan coupon rates which contributes to interest income.”
“Last month, we initiated a dividend program starting with a rate of $0.05 per share, underscoring our commitment to delivering shareholder value,” affirmed de la
Aguilera. “Looking ahead to the coming year and evaluating our thriving Florida economy, we anticipate diversified sustainable growth in both loans and deposits.”
Unless otherwise stated, all percentage comparisons in the bullet points below are calculated for the quarter ended March 31, 2024 compared to the quarter ended
March 31, 2023 and annualized where appropriate.
Profitability
•
Annualized return on average assets for the quarter ended March 31, 2024 was 0.76% compared to 1.11% for the first quarter of 2023.
•
Annualized return on average stockholders’ equity for the quarter ended March 31, 2024 was 9.61% compared to 12.85% for the first quarter of 2023.
•
The efficiency ratio for the quarter ended March 31, 2024 was 63.41% compared to 56.32% for the first quarter of 2023.
•
Net interest margin for the quarter ended March 31, 2024 was 2.62% compared to 3.22% for the first quarter of 2023.
•
Net interest income before provision for credit losses was $15.2 million for the quarter ended March 31, 2024, a decrease of $839 thousand or 5.2% compared to
the first quarter of 2023.
Balance Sheet
•
Total assets were $2.5 billion at March 31, 2024, representing an increase of $325.3 million or 15.0% from March 31, 2023.
•
Total loans were $1.8 billion at March 31, 2024, representing an increase of $240.8 million or 15.2% from March 31, 2023.
•
Total deposits were $2.1 billion at March 31, 2024, representing an increase of $272.3 million or 14.9% from March 31, 2023.
•
Total stockholders’ equity was $195.0 million at March 31, 2024, representing an increase of $11.2 million or 6.1% from March 31, 2023. Total stockholders’ equity
included accumulated comprehensive loss of $45.4 million at March 31, 2024 compared to accumulated comprehensive loss of $42.1 million at March 31, 2023.
Asset Quality
•
The allowance for credit losses (“ACL”) increased by $2.6 million to $21.5 million at March 31, 2024 from $18.9 million at March 31, 2023.
•
The allowance for credit losses represented 1.18% of total loans at March 31, 2024 and 1.20% at March 31, 2023.
•
Non-performing loans to total loans was 0.03% at both March 31, 2024 and March 31, 2023.
Non-interest Income and Non-interest Expense
•
Non-interest income was $2.5 million for the three months ended March 31, 2024, an increase of $394 thousand or 19.0% compared to $2.1 million for the same
period in 2023.
•
Non-interest expense was $11.2 million for the three months ended March 31, 2024, an increase of $998 thousand or 9.8% compared to $10.2 million for the same
period in 2023.
Capital
•
On January 29, 2024, the Company’s Board of Directors declared a cash dividend of $0.05 per share of the Company’s Class A common stock. The dividend was
paid on March 5, 2024 to shareholders of record at the close of business on February 15, 2023. The aggregate amount distributed in connection with this dividend
was $1.0 million.
•
The Company’s Board of Directors declared a cash dividend of $0.05 per share of the Company’s Class A common stock on April 22, 2024. The dividend will be
paid on June 5, 2024 to shareholders of record at the close of business on May 15, 2024.
2
•
As of March 31, 2024,
total risk-based capital ratios for the Company and the Bank were 12.98% and 12.89%, respectively.
•
Tangible book value per common share (a non-GAAP measure) of $9.92 was negatively affected by $2.31 due to accumulated comprehensive loss of $45.4 million
at March 31, 2024. At March 31, 2023, tangible book value per common share of $9.37 was negatively affected by $2.14 due to $42.1 million in accumulated
comprehensive loss.
•
During the quarter the Company repurchased 7,100 shares of Class A common stock at a weighted average price per share of $11.15. The aggregate purchase price
for these transactions was approximately $79.2 thousand, including transaction costs. As of March 31, 2024, 72,980 shares remain authorized for repurchase under
the Company’s previously announced share repurchase program.
•
On April 22, 2024, the Board of Directors approved a new share repurchase program of up to 500,000 shares of Class A common stock or approximately 2.5% of
the Company’s issued and outstanding shares of 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. The new repurchase program will commence upon completion of the current repurchase program.
Repurchases under this program will be funded from the Company’s existing cash and cash equivalents or future cash flow. As of April 22, 2024, 572,980 shares
remain authorized for repurchase under the Company’s share repurchase programs.
Conference Call and Webcast
The Company will host a conference call on Friday, April 26, 2024, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended
March 31, 2024. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.
Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com . An archived
version of the webcast will be available in the same location shortly after the live call has ended.
About USCB Financial Holdings, Inc.
USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks
headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading
independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations,
including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a
banking center near you, please call (305) 715-5200 or visit www.uscentury.com.
Forward-Looking Statements
This earnings release may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes
of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The
words “may,” “will,” “anticipate,” “could,” “ should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “continue,” and “intend,”, the negative of
these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include,
but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as
statements relating to the anticipated effects on results of operations and financial condition from expected or potential developments or events, or business and growth
strategies, including anticipated internal growth and balance sheet restructuring.
These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such
statements. Potential risks and uncertainties include, but are not limited to:
•
the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
•
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 procedures and processes;
•
our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
•
adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
•
deposit attrition and the level of our uninsured deposits;
•
legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the implementation of the
Current Expected Credit Losses (“CECL”) standard;
•
the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry
concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate;
•
the effects of climate change;
•
the concentration of ownership of our common stock;
•
fluctuations in the price of our common stock;
•
our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means,
such as future acquisitions;
•
inflation, interest rate, unemployment rate, market and monetary fluctuations;
•
impacts of international hostilities and geopolitical events;
•
increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin;
•
the loss of key employees;
•
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 statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also
review the risk factors described in the reports the Company filed or will file with the SEC.
3
Non-GAAP Financial Measures
This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This
financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may
provide useful supplemental information for evaluating the Company’s operations and underlying performance trends. Further, management uses these measures in
managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures
should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-
GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found
in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earnings release.
All numbers included in this press release are unaudited unless otherwise noted.
Contacts:
Investor Relations
InvestorRelations@uscentury.com
Media Relations
Martha Guerra-Kattou
MGuerra@uscentury.com
4
USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
Three Months Ended March 31,
2024
2023
Interest income:
Loans, including fees
$
26,643
$
19,711
Investment securities
2,811
2,286
Interest-bearing deposits in financial institutions
1,433
382
Total interest income
30,887
22,379
Interest expense:
Interest-bearing checking
369
43
Savings and money market accounts
10,394
4,785
Time deposits
3,294
1,057
FHLB advances and other borrowings
1,672
497
Total interest expense
15,729
6,382
Net interest income before provision for credit losses
15,158
15,997
Provision for credit losses
410
201
Net interest income after provision for credit losses
14,748
15,796
Non-interest income:
Service fees
1,651
1,205
Gain (loss) on sale of securities available for sale, net
-
(21)
Gain on sale of loans held for sale, net
67
347
Other non-interest income
746
539
Total non-interest income
2,464
2,070
Non-interest expense:
Salaries and employee benefits
6,310
6,377
Occupancy
1,314
1,299
Regulatory assessments and fees
433
224
Consulting and legal fees
592
358
Network and information technology services
507
478
Other operating expense
2,018
1,440
Total non-interest expense
11,174
10,176
Net income before income tax expense
6,038
7,690
Income tax expense
1,426
1,881
Net income
$
4,612
$
5,809
Per share information:
Net income per common share, basic
$
0.23
$
0.29
Net income per common share, diluted
$
0.23
$
0.29
Cash dividends declared
$
0.05
$
-
Weighted average shares outstanding:
Common shares, basic
19,633,330
19,855,409
Common shares, diluted
19,698,258
19,940,606
5
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Income statement data:
Net interest income
$
15,158
$
14,376
$
14,022
$
14,173
$
15,997
Provision for credit losses
410
1,475
653
38
201
Net interest income after provision for credit losses
14,748
12,901
13,369
14,135
15,796
Service fees
1,651
1,348
1,329
1,173
1,205
Gain (loss) on sale of securities available for sale, net
-
(883)
(955)
-
(21)
Gain on sale of loans held for sale, net
67
105
255
94
347
Other income
746
756
1,532
579
539
Total non-interest income
2,464
1,326
2,161
1,846
2,070
Salaries and employee benefits
6,310
6,104
6,066
5,882
6,377
Occupancy
1,314
1,262
1,350
1,319
1,299
Regulatory assessments and fees
433
412
365
452
224
Consulting and legal fees
592
642
513
386
358
Network and information technology services
507
552
481
505
478
Other operating expense
2,018
1,747
1,686
1,908
1,440
Total non-interest expense
11,174
10,719
10,461
10,452
10,176
Net income before income tax expense
6,038
3,508
5,069
5,529
7,690
Income tax expense
1,426
787
1,250
1,333
1,881
Net income
$
4,612
$
2,721
$
3,819
$
4,196
$
5,809
Per share information:
Net income per common share, basic
$
0.23
$
0.14
$
0.20
$
0.21
$
0.29
Net income per common share, diluted
$
0.23
$
0.14
$
0.19
$
0.21
$
0.29
Cash dividends declared
$
0.05
$
-
$
-
$
-
$
-
Balance sheet data (at period-end):
Cash and cash equivalents
$
126,546
$
41,062
$
33,435
$
87,280
$
63,251
Securities available-for-sale
$
259,992
$
229,329
$
218,609
$
218,442
$
229,409
Securities held-to-maturity
$
173,038
$
174,974
$
197,311
$
220,956
$
186,428
Total securities
$
433,030
$
404,303
$
415,920
$
439,398
$
415,837
Loans held for investment
(1)
$
1,821,196
$
1,780,827
$
1,676,520
$
1,595,959
$
1,580,394
Allowance for credit losses
$
(21,454)
$
(21,084)
$
(19,493)
$
(18,815)
$
(18,887)
Total assets
$
2,489,142
$
2,339,093
$
2,244,602
$
2,225,914
$
2,163,821
Non-interest-bearing deposits
$
576,626
$
552,762
$
573,546
$
572,360
$
633,606
Interest-bearing deposits
$
1,526,168
$
1,384,377
$
1,347,376
$
1,348,941
$
1,196,856
Total deposits
$
2,102,794
$
1,937,139
$
1,920,922
$
1,921,301
$
1,830,462
FHLB advances and other borrowings
$
162,000
$
183,000
$
102,000
$
87,000
$
120,000
Total liabilities
$
2,294,131
$
2,147,125
$
2,061,718
$
2,042,229
$
1,979,963
Total stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
Capital ratios:
(2)
Leverage ratio
8.91%
9.28%
9.26%
9.32%
9.36%
Common equity tier 1 capital
11.80%
11.62%
11.97%
12.27%
12.04%
Tier 1 risk-based capital
11.80%
11.62%
11.97%
12.27%
12.04%
Total risk-based capital
12.98%
12.78%
13.10%
13.42%
13.20%
(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are provided for information purposes only; as a small bank holding company, the Company is not subject to
regulatory capital requirements.
6
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Average balance sheet data:
Cash and cash equivalents
$
132,266
$
57,069
$
90,742
$
94,313
$
50,822
Securities available-for-sale
$
239,896
$
215,649
$
222,134
$
224,913
$
230,336
Securities held-to-maturity
$
174,142
$
181,151
$
218,694
$
192,628
$
187,826
Total securities
$
414,038
$
396,800
$
440,828
$
417,541
$
418,162
Loans held for investment
(1)
$
1,781,528
$
1,698,611
$
1,610,864
$
1,569,266
$
1,547,393
Total assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
Interest-bearing deposits
$
1,473,831
$
1,336,470
$
1,353,516
$
1,270,657
$
1,179,878
Non-interest-bearing deposits
$
574,760
$
577,133
$
587,917
$
601,778
$
664,369
Total deposits
$
2,048,591
$
1,913,603
$
1,941,433
$
1,872,435
$
1,844,247
FHLB advances and other borrowings
$
164,187
$
139,000
$
85,326
$
93,075
$
61,600
Total liabilities
$
2,243,011
$
2,085,182
$
2,065,357
$
1,999,304
$
1,936,847
Total stockholders' equity
$
193,092
$
183,629
$
184,901
$
184,238
$
183,371
Performance ratios:
Return on average assets
(2)
0.76%
0.48%
0.67%
0.77%
1.11%
Return on average equity
(2)
9.61%
5.88%
8.19%
9.13%
12.85%
Net interest margin
(2)
2.62%
2.65%
2.60%
2.73%
3.22%
Non-interest income (loss) to average assets
(2)
0.41%
0.23%
0.38%
0.34%
0.40%
Efficiency ratio
(3)
63.41%
68.27%
64.64%
65.25%
56.32%
Loans by type (at period end):
(4)
Residential real estate
$
237,906
$
204,419
$
188,880
$
183,093
$
184,427
Commercial real estate
$
1,057,800
$
1,047,593
$
1,005,280
$
989,401
$
987,757
Commercial and industrial
$
228,045
$
219,757
$
212,975
$
169,401
$
160,947
Foreign banks
$
100,182
$
114,945
$
94,640
$
85,409
$
97,405
Consumer and other
$
194,325
$
191,930
$
173,096
$
167,845
$
149,410
Asset quality data:
Allowance for credit losses to total loans
1.18%
1.18%
1.16%
1.18%
1.20%
Allowance for credit losses to non-performing loans
4,705%
4,505%
4,070%
3,871%
3,886%
Total non-performing loans
(5)
$
456
$
468
$
479
$
486
$
486
Non-performing loans to total loans
0.03%
0.03%
0.03%
0.03%
0.03%
Non-performing assets to total assets
(5)
0.02%
0.02%
0.02%
0.02%
0.02%
Net charge-offs (recoveries of) to average loans
(2)
(0.00)%
(0.00)%
(0.00)%
0.01%
(0.01)%
Net charge-offs (recovery) of credit losses
$
(7)
$
(3)
$
(5)
$
29
$
(49)
Interest rates and yields:
(2)
Loans
6.01%
5.79%
5.55%
5.33%
5.17%
Investment securities
2.69%
2.46%
2.52%
2.26%
2.20%
Total interest-earning assets
5.34%
5.16%
4.89%
4.68%
4.51%
Deposits
2.76%
2.53%
2.39%
1.99%
1.29%
FHLB advances and other borrowings
4.10%
4.04%
3.19%
3.42%
3.27%
Total interest-bearing liabilities
3.86%
3.66%
3.41%
2.97%
2.08%
Other information:
Full-time equivalent employees
199
196
194
198
196
(1) Loan amounts include deferred fees/costs.
(2) Annualized.
(3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
(4) Loan amounts exclude deferred fees/costs.
(5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there were no impaired investments or other
real estate owned (OREO) recorded.
7
USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended March 31,
2024
2023
Average
Balance
Interest
Yield/Rate
(1)
Average
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans
(2)
$
1,781,528
$
26,643
6.01%
$
1,547,393
$
19,711
5.17%
Investment securities
(3)
419,989
2,811
2.69%
421,717
2,286
2.20%
Other interest-earning assets
125,244
1,433
4.60%
43,084
382
3.60%
Total interest-earning assets
2,326,761
30,887
5.34%
2,012,194
22,379
4.51%
Non-interest-earning assets
109,342
108,024
Total assets
$
2,436,103
$
2,120,218
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing checking
$
53,344
369
2.78%
$
58,087
43
0.30%
Saving and money market deposits
1,097,575
10,394
3.81%
897,061
4,785
2.16%
Time deposits
322,912
3,294
4.10%
224,730
1,057
1.91%
Total interest-bearing deposits
1,473,831
14,057
3.84%
1,179,878
5,885
2.02%
FHLB advances and other borrowings
164,187
1,672
4.10%
61,600
497
3.27%
Total interest-bearing liabilities
1,638,018
15,729
3.86%
1,241,478
6,382
2.08%
Non-interest-bearing demand deposits
574,760
664,369
Other non-interest-bearing liabilities
30,233
31,000
Total liabilities
2,243,011
1,936,847
Stockholders' equity
193,092
183,371
Total liabilities and stockholders' equity
$
2,436,103
$
2,120,218
Net interest income
$
15,158
$
15,997
Net interest spread
(4)
1.48%
2.43%
Net interest margin
(5)
2.62%
3.22%
(1) Annualized.
(2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
(3) At fair value except for securities held to maturity. This amount includes FHLB stock.
(4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities.
(5) Net interest margin is the ratio of net interest income to total interest-earning assets.
8
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
4,612
$
2,721
$
3,819
$
4,196
$
5,809
Plus: Provision for income taxes
1,426
787
1,250
1,333
1,881
Plus: Provision for credit losses
410
1,475
653
38
201
PTPP income
$
6,448
$
4,983
$
5,722
$
5,567
$
7,891
PTPP return on average assets:
(1)
PTPP income
$
6,448
$
4,983
$
5,722
$
5,567
$
7,891
Average assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
PTPP return on average assets
(2)
1.06%
0.87%
1.01%
1.02%
1.51%
Operating net income:
(1)
Net income
$
4,612
$
2,721
$
3,819
$
4,196
$
5,809
Less: Net gains (losses) on sale of securities
-
(883)
(955)
-
(21)
Less: Tax effect on sale of securities
-
224
242
-
5
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Operating PTPP income:
(1)
PTPP income
$
6,448
$
4,983
$
5,722
$
5,567
$
7,891
Less: Net gains (losses) on sale of securities
-
(883)
(955)
-
(21)
Operating PTPP income
$
6,448
$
5,866
$
6,677
$
5,567
$
7,912
Operating PTPP return on average assets:
(1)
Operating PTPP income
$
6,448
$
5,866
$
6,677
$
5,567
$
7,912
Average assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
Operating PTPP return on average assets
(2)
1.06%
1.03%
1.18%
1.02%
1.51%
Operating return on average assets:
(1)
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Average assets
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
$
2,120,218
Operating return on average assets
(2)
0.76%
0.59%
0.80%
0.77%
1.11%
Operating return on average equity:
(1)
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Average equity
$
193,092
$
183,629
$
184,901
$
184,238
$
183,371
Operating return on average equity
(2)
9.61%
7.30%
9.72%
9.13%
12.88%
Operating Revenue:
(1)
$
15,158
$
14,376
$
14,022
$
14,173
$
15,997
2,464
1,326
2,161
1,846
2,070
-
(883)
(955)
-
(21)
$
17,622
$
16,585
$
17,138
$
16,019
$
18,088
Operating Efficiency Ratio:
(1)
$
11,174
$
10,719
$
10,461
$
10,452
$
10,176
$
17,622
$
16,585
$
17,138
$
16,019
$
18,088
63.41%
64.63%
61.04%
65.25%
56.26%
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Annualized.
9
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
Less: Intangible assets
-
-
-
-
-
Tangible stockholders' equity
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,650,463
19,575,435
19,542,290
19,544,777
19,622,380
Tangible book value per common share
(2)
$
9.92
$
9.81
$
9.36
$
9.40
$
9.37
Operating diluted net income per common share:
(1)
Operating net income
$
4,612
$
3,380
$
4,532
$
4,196
$
5,825
Total weighted average diluted shares of common stock
19,698,258
19,573,350
19,611,897
19,639,682
19,940,606
Operating diluted net income per common share:
$
0.23
$
0.17
0.23
0.21
0.29
Tangible Common Equity/Tangible Assets
(1)
$
195,011
$
191,968
$
182,884
$
183,685
$
183,858
(3)
$
2,489,142
2,339,093
2,244,602
2,225,914
2,163,821
Tangible Common Equity/Tangible Assets
7.83%
8.21%
8.15%
8.25%
8.50%
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.
(3) Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAA
P.
Exhibit 99.2
EARNINGS PRESENTATION FIRST QUARTER 2024 NASDAG: USCB USCB FINANCIAL HOLDINGS | U.S. CENTURY BANK
FORWARD-LOOKING STATEMENTS This presentation may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “ should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “continue,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward -looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring. These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; 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 procedures and processes; our ability to comply with the extensive laws and regulations to which we
are subject, including the laws for each jurisdiction where we operate; adverse changes or conditions in the capital and financial markets, including actual or potential stresses in the banking industry; deposit attrition and the level of our uninsured deposits; legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the implementation of the Current Expected Credit Losses (“CECL”) standard; the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate; the effects of climate change; the concentration of ownership of our common stock; fluctuations in the price of our common stock; our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions; inflation, interest rate, unemployment rate, market, and monetary fluctuations; impacts of international hostilities and geopolitical events; increased competition and its effect on the pricing of our products and services as well as our net interest rate spread and net interest margin; the loss of key employees; the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and cybersecurity-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 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 statements to reflect events or circumstances occurring after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports USCB Financial Holdings, Inc. filed or will file with the SEC. 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 financial measures because it believes these measures may provide useful supplemental information for evaluating the Company’s expectations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly compara ble GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the presentation. All numbers included in this presentation are unaudited unless otherwise noted. 2
Q1 2024 HIGHLIGHTS Growth Average deposits increased by $204.3 million or 11.1% compared to the first quarter 2023. Average loans increased $234.1 million or 15.1% compared to the first quarter 2023. Liquidity sources on March 31, 2024, totaled $673 millio n in on-balance sheet and off-balance sheet sources. Tangible Book Value per Share (1) on March 31, 2024, of $9.92 includes AOCI impact of ($2.31) increased from $9.81 at prior quarter end which included an AOCI impact of ($2.26). Profitability Net income was $4.6 million or $0.23 per diluted share, increase of $1.9 million compared to the fourth quarter 2023. Net interest income before provision increased $782 thousand or 21.8% annualized for the quarter compared to the fourth quarter 2023. ROAA was 0.76% in the first quarter 2024 compared to 0.48% for the fourth quarter 2023. ROAE was 9.61% in the first quarter 2024 compared to 5.88% for the fourth quarter 2023. Capital/Credit On January 29, 2024, the Company’s Board of Directors declared a cash dividend of $0.05 per share of the Company’s Class A common stock, the aggregate distribution amount distributed in connection with this dividend was $1.0 million. The dividend was paid on March 5, 2024. At March 31, 2024, one C&I loan classified as nonaccrual for a total of $456 thousand. ACL coverage ratio was 1.18% at March 31, 2024, and December 31, 2023. 3
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans (1) In millions $735 $1,821 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Deposits In millions $782 $2,103 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Total stockholders’ equity In millions $86 $195 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 ACL/Total Loans 1.17% 1.18% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Net charge-off -$1,019 -$7 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Net charge off Nonperforming Assets/Total Assets 158.00% 0.02% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Net interest income In millions $30 $59 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Efficiency ratio 94.15% 63.41% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 PTPP ROAA (2) 0.24% 1.06% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 (1) Loan amounts include deferred fees/costs. (2) Non-GAAP financial measure. See reconciliation in this presentation. 4
FINANCIAL RESULTS Balance Sheet (EOP) In thousands (except per share data) Q1 2024 Q4 2023 Q1 2023 Total Securities $433,030 $404,303 $415,837 Total Loans (1) $1,821,196 $1,780,827 $1,580,394 Total Assets $2,489,142 $2,339,093 $2,163,821 Total Deposits $2,102,794 $1,937,139 $1,830,462 Total Equity (2) $195,011 $191,968 $183,858 Income Statement Net Interest Income $15,158 $14,376 $15,997 Non-Interest Income $2,464 $1,326 $2,070 Total Revenue $17,622 $15,702 $18,067 Provision for Credit Losses $410 $1,475 $201 Non-Interest Expense $11,174 $10,719 $10,176 Net Income $4,612 $2,721 $5,809 Diluted Earning Per Share (EPS) $0.23 $0.14 $0.29 Weighted Average Diluted Shares 19,698,258 19,573,350 19,940,606 (1) Loan amounts include deferred fees/costs. (2) Total Equity includes accumulated comprehensive loss of $45.4 million for Q1 2024, $44.3 million for Q4 2023, and $42.1 million for Q1 2023. 5
KEY PERFORMANCE INDICATORS Q1 2024 Q4 2023 Q1 2023 In thousands (except for TBV/share) GROWTH Total Assets (EOP) $2,489,142 $2,339,093 $2,163,821 Total Loans (EOP) $1,821,196 $1,780,827 $1,580,394 Total Deposits (EOP) $2,102,794 $1,937,139 $1,830,462 Tangible Book Value/Share (1)(4) $9.92 $9.81 $9.37 PROFITABILITY Return On Average Assets (ROAA) (3) 0.76% 0.48% 1.11% Return On Average Equity (ROAE) (3) 9.61% 5.88% 12.85% Net Interest Margin (3) 2.62% 2.65% 3.22% Efficiency Ratio 63.41% 68.27% 56.32% Non-Interest Expense/Avg Assets (3) 1.84% 1.87% 1.95% CAPITAL/CREDIT Tangible Common Equity/Tangible Assets (1) 7.83% 8.21% 8.50% Total Risk-Based Capital (2) 12.98% 12.78% 13.20% NCO/Avg Loans (3) 0.00% 0.00% (0.01%) NPA/Assets 0.02% 0.02% 0.02% Allowance Credit Losses/Loans 1.18% 1.18% 1.20% (1) Non-GAAP financial measures. See reconciliation in this presentation. (2) Reflects the Company's regulatory capital ratios which are provided for information purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. (3) Annualized. (4) AOCI effect on tangible book value per share was ($2.31) for Q1 2024, ($2.26) for Q4 2023 and ($2.14) for Q1 2023. 6
DEPOSIT PORTFOLIO Deposits AVG In millions $1,844 $1,872 $194 $1,914 $2,049 $225 $277 $290 $282 $323 $897 $940 $1,011 $1,005 $1,098 $58 $53 $52 $50 $53 $664 $602 $588 $577 $575 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Non-interest -bearing deposits Interest-bearing checking deposits Money market and savings Time deposits Deposit Cost 0.25% 5.00% 5.25% 5.50% 5.50% 5.50% 0.21% 1.29% 1.99% 2.39% 2.53% 2.76% Q4 2021 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Deposit Cost Fed Fund Rate (upper bound) Commentary Average deposits increased $135.0 million or 28.4% annualized compared to the prior quarter and increased $204.3 million or 11.1% compared to the first quarter 2023. Average DDA balances comprised 28.1% of total average deposits for the first quarter 2024. While our average non-interest-bearing deposits had a slight decrease in the first quarter 2024 from the prior quarter, our EOP balance increased $23.9 million or 17.4% annualized. Deposit beta of 49% since Q4 2021. 7
LOAN PORTFOLIO Total Loans (AVG) In millions $1,547 $1,569 $1,611 $1,699 $1,782 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Loan Yields 5.17% 5.33% 5.55% 5.79% 6.01% 0.03% 0.02% 0.02% 0.00% 0.00% 5.14% 5.31% 5.53% 5.79% 6.01% +87 bps Q1'23 vs Q1'24 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Loan co upon Loan fees Commentary Average loans increased $82.9 million or 19.6% annualized compared to prior quarter and $234.1 million or 15.1% compared to the first quarter 2023. Loan coupon increased 22 bps compared to the prior quarter and 87 bps compared to the first quarter 2023. 8
LOAN PRODUCTION Net Loan Production Trend In millions 6.66% 7.20% 8.00% 8 8.16 $96 $22 $67 $51 $135 $55 $150 $46 $131 $91 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Loan Production/Line change Loan Amortization/payoffs New loans average coupon Loan Composition Trend EOP (1) In millions $948 $1,818 28% 12% 63% 58% 9% 29% 10-Jun 24-Mar Residential real estate Commercial real estate Real Estate Loans Commercial and industrial, Foreign banks, and Consume rand other (1) Excludes unearned fees and PPP Loans, EOP Commentary $131 million in new loan production in the first quarter 2024 at higher coupon rates. Weighted average coupon on new loans was 8.16% for first quarter 2024, 215 bps above portfolio average. Increase in payoffs and paydowns predominately due to global banking loans which are originated on a 6 month and 1 year term. Loan composition shift from real estate loans to non-CRE loans is steadily increasing, further diversifying our loan portfolio. 9
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 3.22% 2.73% 2.60% 2.65% 2.62% $15,997 $14,173 $14,022 $14,376 $15,158 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Interest Income NIM Interest-Earning Assets Mix (AVG) 2% 4% 4% 2% 5% 21% 20% 21% 19% 18% 77% 76% 75% 79% 77% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Loans Investment Securities Cash Balances & Equivalents Commentary Net interest income increased $782 thousand or 21.8% annualized compared to the fourth quarter 2023. NIM had a slight decrease compared to fourth quarter 2023 due to additional deposit growth and deposit cost. NIM outlook remains positive: New loan originations with yields above 8.00%. First quarter deposit growth allowed us to price down higher-priced deposits at the end of the quarter. Interest-bearing asset growth outpacing interest-bearing liabilities. (1) Annualized. 10
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 4% Fixed Rate 42% Variable Rate 54% 18% 16% 66% Prime CMT SOFR 40% 36% 10% 14% 0-1 yrs. 0-2 1-2 yrs. 0-3 2-3 yrs. 0-4 >3 yrs. Static NII Simulation Year 1 & 2 Year 1 Yer 2 $7,000 $2,000 2.8% 5.4% -$3,000 -100 `+100 `-100 +100 -$8,000 3.8% -7.1% Net Interest Income change from base ($ in thousands and % change) 11
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.20% 1.18% 1.16% 1.18% 1.18% $18,887 $18,815 $19,493 $21,084 $21,454 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Allowance for credit losses ACL/Total Loans Non-performing Loans In thousan ds (except ratios) 0.03% 0.03% 0.03% 0.03% 0.03% $486 $486 $479 $468 $456 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Non -accrual loans Non-performing loans to total loans Classified Loans (1) to Total Loans 0.25% 0.21% 0.27% 0.53% 0.44% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 (1) Loans classified as substandard at period end. No loans classified doubtful at dates presented. Commentary ACL coverage ratio was at 1.18% on March 31, 2024, same as the prior quarter. One C&I loan for $456 thousand was classified as nonaccrual on March 31, 2024. The classified ratio improved for first quarter 2024 as one loan for $1.4 million showed improvement. 12
LOAN PORTFOLIO MIX Loan Portfolio Mix (1) Residential real estate CRE -Owner occupied CRE - Non-owner occupied Commercial and industrial Correspondent banks Consumer and other 11% 11% 13% 10% 48% 13% 5% $1,818MM(1) Commentary Total loan balance at quarter end was $1,818 million (1). Commercial Real Estate (owner occupied and non-owner occupied) was 58% or $1,058 million of the total loan portfolio(1). CRE mix is diversified and granular. Retail non-owner occupied makes up 27% of total CRE or $282.8 million. CRE Loan Mix Land/Construction 2% Other 2% Retail 27% Multifamily 20% CRE - Owner Occupied 17% Office 12% Warehouse 12% Hotels 8% $1,058MM CRE Loan Portfolio (non-owner occupied and owner occupied) Weighted Average Average Loan Type LTV (1> DSCR (2) Loan Size (3) Retail Multifamily 54% 59% 1.91 1.44 $2.9 $1.6 Office 57% 1.96 $1.5 Warehouse 60% 1.87 $1.5 Hotels 55% 2.13 $5.1 Other 60% 2.02 $1.7 Land/Construction 76% NA $1.7 l0lTV Loan to value rallo. 10 DSCR Debt service coverage ratio. Balance in millions As of 3/31/24 Excludes unearned fees Includes loan types: office, warehouse, retail, and other 13
CRE OFFICE PORTFOLIO Owner Occupied Office by Business Type In Millions as of 3/31/2024 $20.1 32% $19.2 31% $13.9 22% $9.6 15% Medical/Dental Other Professional Other < $1MM Non-Owner Occupied Office by Business Type $13.6 11% $83.2 67% $21.0 17% $5.9 5% Multi-Tenant Medical/Dental Other < $1MM Commentary Total office loan portfolio (owner occupied and non-owner occupied) had 128 notes with an average balance of $1.5 million dollars, LTV of 57%, and DSCR of 1.96X at quarter end. The largest business type in the office portfolio is multi-tenant with 45% of the portfolio. Miami’s office sector outperforms the national average with a lower vacancy rate of 9.4% and availability rate of 11.8%, compared to the estimated national average of 13% and 16.5%, respectively. (1) CRE Office Key Metrics As of 3/31/240 Avg. Loan Size in millions $ 1.5 NCOs / Average Loans 0.00% Delinquencies / Loans 0.00% Nonaccruals / Loans 0.00% Classified Loans / Loans 0.00% (1) Data points source: CoStar Group, a NASDAQ company and world leader in commercial real estate information with a comprehensive database of real estate data throughout the US, Canada, UK and France. Published April 2023. 14
NON-INTEREST INCOME In thousands (except ratios) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Service fees $1,651 $1,348 $1,329 $1,173 $1,205 Gain (loss) on sale of securities available for sale - (883) (955) - (21) Gain on sale of loans held for sale 67 105 255 94 347 Other income 746 756 1,532 579 539 Total non-interest income $2,464 $1,326 $2,161 $1,846 $2,070 Average total assets $2,436,103 $2,268,811 $2,250,258 $2,183,542 $2,120,21 8 Non-interest income/Average assets (1) 0.41% 0.23% 0.38% 0.34% 0.40% Commentary Service fees have increased year over year due to wire fees with new and existing correspondent banks. Non-interest income over average assets was 0.41%, higher than prior quarters. Other income increased with BOLI restructuring in the third quarter of 2023. (1) Annualized. 15
NON-INTEREST EXPENSE In thousands (except ratios) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Salaries and employee benefits $6,310 $6,104 $6,066 $5,882 $6,377 Occupancy 1,314 1,262 1,350 1,319 1,299 Regulatory assessments and fees 433 412 365 452 224 Consulting and legal fees 592 642 513 386 358 Network and information technology services 507 552 481 505 478 Other operating expense 2,018 1,747 1,686 1,908 1,440 Total non-interest expense $11,174 $10,719 $10,461 $10,452 $10,176 Efficiency ratio 63.41% 68.27% 64.64% 65.25% 56.32% Average total assets $2,436,103 $2,268,811 $2,250,258 $2,183,542 $2,120,218 Non-interest expense / Average assets (1) 1.84% 1.87% 1.84% 1.92% 1.95% Full-time equivalent employees 199 196 194 198 196 Commentary Salaries and benefits are up due to 3 new FTE, seasonal payroll taxes, and stock-based compensation. Other operating expenses up $271 thousand due to $67 thousand increase in promotional expense to support business verticals, $60 thousand increase in force-placed insurance, and $40 thousand increase in property insurance expense. Non-interest expense / Average assets has improved 11 bps year-over-year. Efficiency ratio improved for the first quarter 2024 due to higher revenue from a larger loan portfolio and additional wire transfer fee income. Annualized. 16
CAPITAL 'S Capital Ratios Ql 2024 8.91% Leverage Ratio TCE/TA (2) 7.83% Tier 1 Risk- Based Capital 11.80% Total Risk- 12.98% Based Capital AOCI ($45.4) ln Millions Well -Capitalized 9.28% 8.09% 11.62% 12.78% ($44.3) 9.36% 8.50% 12.04% 13.20% ($42.1) 5.00% NA 8.00% 10.00% Commentary The Company paid in March 2024 a cash dividend of $0.05 per share of the Company’s Class A common stock, the aggregate distributed amount in connection with this dividend was $1.0 million. During the quarter, the Company repurchased 7,100 share s of common stock at a weighted average price per share of $11.15. Q1 2024 EOP common stock shares outstanding: 19,650,463. (1) Reflects the Company's regulatory capital ratios which are provided for information purposes only; as a small bank holding comp any, the Company is not subject to regulatory capital requirements. (2) Non-GAAP financial measures. See reconciliation in this presentation. 17
TAKEAWAYS Leading franchise located in one of the most attractive banking markets in Florida and the U.S. Robust organic growth Strong asset quality, with minimal charge-offs experienced since 2015 recapitalization Experienced and tested management team Strong profitability, with pathway for future enhancement identified Core funded deposit base with 27% non-interest-bearing deposits (EOP) 18
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) As of or For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Pre-tax pre-provision ("PTPP") income: (1) Net income $4,612$2,721$3,819$4,196$5,809 Plus: Provision for income taxes 1,426 A A fl 787 1 17C 1,250 cc? 1,333 OQ 1,881 on a Plus: Provision for credit losses PTPP income $41U 6,448 s 1,4/ 4,983$bW 5,722 s 0Ö 5,567 s Z) 1 7,891 PTPP return on average assets: (1) PTPP income $6,448$4,983$5,722$5,567$7,891 Average assets $2,436,103$2,268,811$2,250,258$2,183,542$2,120,218 PTPP return on average assets (2) 1.06% 0.87% 1.01% 1.02% 1.51% Operating net income: (1) Net income $4,612$2,721$3,819$4,196$5,809 Less: Net gains (losses) on sale of securities - (883) (955) - (21) Less: Tax effect on sale of securities - 224 242 - 5 Operating net income $4,612$3,380$4,532$4,196$5,825 Operating PTPP income: (1) PTPP income Less: Net gains (losses) on sale of securities $6,448$4,983 (883) s 5,722 (955) s 5,567$7,891 (21) Operating PTPP income S 6,448 S 5,866 S 6,677 S 5,567 S 7,912 Operating PTPP return on average assets: (1) Operating PTPP income Average assets s s 6,448 2,436,103 s s 5,866 2,268,811 s s 6,677 2,250,258 s s 5,567 2,183,542 s s 7,912 2,120,218 Operating PTPP return on average assets (2) 1.06% 1.03% 1.18% 1.02% 1.51% Operating return on average assets: (1) Operating net income AvPrflHP acepte $4,612 ? 436 1 03 s 3,380 ? 266 611 s 4,532 ? 250 2S6 s 4,196 2 163 542 s 5,825 2 120 216 ni vi utjv floOvlo Operating return on average assets (2) 4. ,*T JW , 1 V sJ 0.76% 4. . Í-.SJ V, \J 1 1 0.59% 4. V ,4 w’U 0.80% 4 , 1 \JyJ (Jt4 0.77% 4. I 4 U, 4 1 \J 1.11% Operating PTPP income: (1) PTPP income S 6,448 S 4,983 S 5,722 S 5,567 S 7,891 Less: Net gains (losses) on sale of securities Operating PTPP income $6,448$(883) 5,866 s (955)
6,677 s 5,567$(21) 7,912 Operating PTPP return on average assets: (1) Operating PTPP income Average assets s s 6,448 2,436,10 3 s s 5,866 2,268,811 s s 6,677 2,250,258 s s 5,567 2,183,542 s s 7,912 2,120,218 Operating PTPP return on average assets (2) 1.06% 1.03% 1.18% 1.02% 1.51% Operating return on average assets: (1) Operating net income $4,612$3,380$4,532$4,196$5,825 Average assets $2,436,103$2,268,811$2,250,258$2,183,542$2,120,218 Operating return on average assets (2) 0.76% 0.59% 0.80% 0.77% 1.11% Operating return on average equity: (1) Operating net income Average equity s s 4,612 193,092 s s 3,380 183,629 s s 4,532 184,901 s s 4,196 184,238 s s 5,825 183,371 Operating return on average equity (2) 9.61% 7.30% 9.72% 9.13% 12.88% Operating Revenue: (1) Net interest income $15,158$14,376$14,022$14,173$15,997 Non-interest income 2,464 1,326 2,161 1,846 2,070 Less: Net gains (losses) on sale of securities - (883) (955) - (21) Operating revenue $17,622$16,5 85$17,138$16,019$18,088 Operating Efficiency Ratio: (1) Total non-interest expense s c 11,174 47 C77 s c 10,719 a c C9C s c 10,461 47 4 OO s c 10,452 A C s c 10,176 4 O fíO O Operating revenu e Operating efficiency ratio 5 1 ( ,b ¿Z 63.41% 5 1 b, bob 64.63% 1 f ,1 bo 61.04% 5 iotuiy 65.25% 5 1 O'Uoo 56.26% 1. The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company. 2. Annualized. 19
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of or For the Three Months Bided 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Tangible book value per common share (at period-end): (1) Total stockholders' equity $195.011$191,968$182.884$183,685$183.858 Less: Intangible assets - - - - - Tangible stockholders' equity $195.011$191,968$182.884$183,685$183,858 Total shares issued and outstanding (at period-end): Total common shares issued and outstanding 19.650.463 19.575,435 19.542.290 19.544.777 19.622.380 Tangible book value per common share (2)$9.92$9.81$9.36$9.40$9.37 Operating diluted net income per common share: (1) Operating net income $4,612$3,380$4,532$4,196$5,825 Total weighted average diluted shares of common stock 19.698.258 19.573,350 19.611,897 19.639.682 19.940.606 Operating diluted net income per common share: $0.23$0.17$0.23$0.21$0.29 Tangible Com m on Equity/Tangible Assets (1) Tangible stockholders' equity $195.011$191,968$182.884$183.685$183.858 Tan gible total assets (3)$2.489,142$2.339.093$2.244.602$2.225,914$2,163.821 Tangible Common Equity/Tangible Assets 7.83% 8.21% 8.15% 8.25% 8.50% 1. The Company believes these non-GAAP measurements are key indicators of the ongoing earnings pew er of the Company. 2. Excludes the dilutive effect if any. of shares of common stock issuable upon exercise of outstanding stock options. 3. Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAAP 20
CONTACT INFORMATION LOU DE LA AGUILERA Chairman, President & CEO (305) 715-5186 laguilera@uscentury.com ROB ANDERSON EVP, Chief Financial Officer (305) 715-5393 rob.anderson@uscentury.com INVESTOR RELATIONS InvestorRelations@uscentury.com 21