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)
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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 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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Trading
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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 July 25, 2024, USCB Financial Holdings, Inc. (the “Company”) issued a press release announcing its financial results for
the quarter ended June 30, 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 July 26, 2024, the Company will hold an earnings conference call to discuss its
financial performance for the quarter ended June 30, 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: July 25, 2024
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Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS Since Going Public of $0.31 for Q2 2024
MIAMI, FL – July 25, 2024 – USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB)
, the holding company for U.S. Century Bank (the “Bank”),
reported net income of $6.2 million or $0.31 per fully diluted share for the three months ended June 30, 2024, compared with net income of $4.2 million or $0.21 per
fully diluted share for the same period in 2023.
“Today marks another milestone for our bank, as we report for the quarter a fully diluted EPS of $0.31. This achievement reflects the consistent execution of our strategic
initiatives, supported by disciplined risk management practices and an associate base committed to superior customer service,” said Luis de la Aguilera, Chairman,
President, and CEO. “Our focused efforts have resulted in a ROAA above 1.00%, strong NIM expansion, an efficiency ratio of 56% and continued stable credit metrics.”
said de la Aguilera.
Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended June 30, 2024 compared to at or for the quarter
ended June 30, 2023 and annualized where appropriate.
Profitability
•
Annualized return on average assets for the quarter ended June 30, 2024 was 1.01% compared to 0.77% for the second quarter of 2023.
•
Annualized return on average stockholders’ equity for the quarter ended June 30, 2024 was 12.63% compared to 9.13% for the second quarter of 2023.
•
The efficiency ratio for the quarter ended June 30, 2024 was 56.33% compared to 65.25% for the second quarter of 2023.
•
Net interest margin for the quarter ended June 30, 2024 was 2.94% compared to 2.73% for the second quarter of 2023.
•
Net interest income before provision for credit losses was $17.3 million for the quarter ended June 30, 2024, an increase of $3.1 million or 22.1% compared to the
second quarter of 2023.
Balance Sheet
•
Total assets were $2.5 billion at June 30, 2024, representing an increase of $232.4 million or 10.4% from June 30, 2023.
•
Total loans were $1.9 billion at June 30, 2024, representing an increase of $273.3 million or 17.1% from June 30, 2023.
•
Total deposits were $2.1 billion at June 30, 2024, representing an increase of $135.4 million or 7.0% from June 30, 2023.
•
Total stockholders’ equity was $201.0 million at June 30, 2024, representing an increase of $17.3 million or 9.4% from June 30, 2023. Total stockholders’ equity
included accumulated comprehensive loss of $44.7 million at June 30, 2024 compared to accumulated comprehensive loss of $46.3 million at June 30, 2023.
Asset Quality
•
The allowance for credit losses (“ACL”) increased by $3.4 million to $22.2 million at June 30, 2024 from $18.8 million at June 30, 2023.
•
The ACL represented 1.19% of total loans at June 30, 2024 and 1.18% at June 30, 2023.
•
Non-performing loans to total loans was 0.04% at June 30, 2024 and 0.03% at June 30, 2023.
Non-interest Income and Non-interest Expense
•
Non-interest income was $3.2 million for the three months ended June 30, 2024, an increase of $1.4 million or 73.9% compared to $1.8 million for the same period
in 2023.
•
Non-interest expense was $11. 6 million for the three months ended June 30, 2024, an increase of $1.1 million or 10.6% compared to $10.5 million for the same
period in 2023.
Capital
•
On July 22, 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 will be
paid on September 5, 2024 to shareholders of record at the close of business on August 15, 2024.
•
As of June 30, 2024,
total risk-based capital ratios for the Company and the Bank were 13.12% and 13.01%, respectively.
•
Tangible book value per common share (a non-GAAP measure) was $10.24 at June 30, 2024, representing an increase of $0.84 or 8.9% increase from $9.40 at June
30, 2023.
•
During the quarter the Company repurchased 25,000 shares of Class A common stock at a weighted average cost per share of $12.04. The aggregate purchase price
for these transactions was approximately $301.0 thousand, including transaction costs. As of June 30, 2024, 547,980 shares remained authorized for repurchase
under the Company’s share repurchase programs.
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Conference Call and Webcast
The Company will host a conference call on Friday, July 26, 2024, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended
June 30, 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 our 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, and 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.
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.
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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 June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Interest income:
Loans, including fees
$
28,017
$
20,847
$
54,660
$
40,558
Investment securities
3,069
2,382
5,880
4,668
Interest-bearing deposits in financial institutions
1,531
1,051
2,964
1,433
Total interest income
32,617
24,280
63,504
46,659
Interest expense:
Interest-bearing checking
391
200
760
243
Savings and money market accounts
10,071
6,968
20,465
11,753
Time deposits
3,222
2,145
6,516
3,202
FHLB advances and other borrowings
1,622
794
3,294
1,291
Total interest expense
15,306
10,107
31,035
16,489
Net interest income before provision for credit losses
17,311
14,173
32,469
30,170
Provision for credit losses
786
38
1,196
239
Net interest income after provision for credit losses
16,525
14,135
31,273
29,931
Non-interest income:
Service fees
1,977
1,173
3,628
2,378
Gain (loss) on sale of securities available for sale, net
14
-
14
(21)
Gain on sale of loans held for sale, net
417
94
484
441
Other non-interest income
803
579
1,549
1,118
Total non-interest income
3,211
1,846
5,675
3,916
Non-interest expense:
Salaries and employee benefits
7,353
5,882
13,663
12,259
Occupancy
1,266
1,319
2,580
2,618
Regulatory assessments and fees
476
452
909
676
Consulting and legal fees
263
386
855
744
Network and information technology services
479
505
986
983
Other operating expense
1,723
1,908
3,741
3,348
Total non-interest expense
11,560
10,452
22,734
20,628
Net income before income tax expense
8,176
5,529
14,214
13,219
Income tax expense
1,967
1,333
3,393
3,214
Net income
$
6,209
$
4,196
$
10,821
$
10,005
Per share information:
Net income per common share, basic
$
0.32
$
0.21
$
0.55
$
0.51
Net income per common share, diluted
$
0.31
$
0.21
$
0.55
$
0.51
Cash dividends declared
$
0.05
$
-
$
0.10
$
-
Weighted average shares outstanding:
Common shares, basic
19,650,681
19,590,359
19,642,006
19,722,152
Common shares, diluted
19,717,167
19,639,682
19,707,561
19,790,756
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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
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Income statement data:
Net interest income
$
17,311
$
15,158
$
14,376
$
14,022
$
14,173
Provision for credit losses
786
410
1,475
653
38
Net interest income after provision for credit losses
16,525
14,748
12,901
13,369
14,135
Service fees
1,977
1,651
1,348
1,329
1,173
Gain (loss) on sale of securities available for sale, net
14
-
(883)
(955)
-
Gain on sale of loans held for sale, net
417
67
105
255
94
Other income
803
746
756
1,532
579
Total non-interest income
3,211
2,464
1,326
2,161
1,846
Salaries and employee benefits
7,353
6,310
6,104
6,066
5,882
Occupancy
1,266
1,314
1,262
1,350
1,319
Regulatory assessments and fees
476
433
412
365
452
Consulting and legal fees
263
592
642
513
386
Network and information technology services
479
507
552
481
505
Other operating expense
1,723
2,018
1,747
1,686
1,908
Total non-interest expense
11,560
11,174
10,719
10,461
10,452
Net income before income tax expense
8,176
6,038
3,508
5,069
5,529
Income tax expense
1,967
1,426
787
1,250
1,333
Net income
$
6,209
$
4,612
$
2,721
$
3,819
$
4,196
Per share information:
Net income per common share, basic
$
0.32
$
0.23
$
0.14
$
0.20
$
0.21
Net income per common share, diluted
$
0.31
$
0.23
$
0.14
$
0.19
$
0.21
Cash dividends declared
$
0.05
$
0.05
$
-
$
-
$
-
Balance sheet data (at period-end):
Cash and cash equivalents
$
77,261
$
126,546
$
41,062
$
33,435
$
87,280
Securities available-for-sale
$
236,444
$
259,992
$
229,329
$
218,609
$
218,442
Securities held-to-maturity
$
169,606
$
173,038
$
174,974
$
197,311
$
220,956
Total securities
$
406,050
$
433,030
$
404,303
$
415,920
$
439,398
Loans held for investment
(1)
$
1,869,249
$
1,821,196
$
1,780,827
$
1,676,520
$
1,595,959
Allowance for credit losses
$
(22,230)
$
(21,454)
$
(21,084)
$
(19,493)
$
(18,815)
Total assets
$
2,458,270
$
2,489,142
$
2,339,093
$
2,244,602
$
2,225,914
Non-interest-bearing demand deposits
$
579,243
$
576,626
$
552,762
$
573,546
$
572,360
Interest-bearing deposits
$
1,477,459
$
1,526,168
$
1,384,377
$
1,347,376
$
1,348,941
Total deposits
$
2,056,702
$
2,102,794
$
1,937,139
$
1,920,922
$
1,921,301
FHLB advances and other borrowings
$
162,000
$
162,000
$
183,000
$
102,000
$
87,000
Total liabilities
$
2,257,250
$
2,294,131
$
2,147,125
$
2,061,718
$
2,042,229
Total stockholders' equity
$
201,020
$
195,011
$
191,968
$
182,884
$
183,685
Capital ratios:
(2)
Leverage ratio
9.03%
8.91%
9.28%
9.26%
9.32%
Common equity tier 1 capital
11.93%
11.80%
11.62%
11.97%
12.27%
Tier 1 risk-based capital
11.93%
11.80%
11.62%
11.97%
12.27%
Total risk-based capital
13.12%
12.98%
12.78%
13.10%
13.42%
(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject
to regulatory capital requirements. The Bank's total risk-based capital for second quarter 2024 was 13.01%.
6
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Average balance sheet data:
Cash and cash equivalents
$
107,831
$
132,266
$
57,069
$
90,742
$
94,313
Securities available-for-sale
$
263,345
$
239,896
$
215,649
$
222,134
$
224,913
Securities held-to-maturity
$
171,682
$
174,142
$
181,151
$
218,694
$
192,628
Total securities
$
435,027
$
414,038
$
396,800
$
440,828
$
417,541
Loans held for investment
(1)
$
1,828,487
$
1,781,528
$
1,698,611
$
1,610,864
$
1,569,266
Total assets
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
Interest-bearing deposits
$
1,473,513
$
1,473,831
$
1,336,470
$
1,353,516
$
1,270,657
Non-interest-bearing demand deposits
$
610,370
$
574,760
$
577,133
$
587,917
$
601,778
Total deposits
$
2,083,883
$
2,048,591
$
1,913,603
$
1,941,433
$
1,872,435
FHLB advances and other borrowings
$
162,000
$
164,187
$
139,000
$
85,326
$
93,075
Total liabilities
$
2,281,467
$
2,243,011
$
2,085,182
$
2,065,357
$
1,999,304
Total stockholders' equity
$
197,755
$
193,092
$
183,629
$
184,901
$
184,238
Performance ratios:
Return on average assets
(2)
1.01%
0.76%
0.48%
0.67%
0.77%
Return on average equity
(2)
12.63%
9.61%
5.88%
8.19%
9.13%
Net interest margin
(2)
2.94%
2.62%
2.65%
2.60%
2.73%
Non-interest income to average assets
(2)
0.52%
0.41%
0.23%
0.38%
0.34%
Efficiency ratio
(3)
56.33%
63.41%
68.27%
64.64%
65.25%
Loans by type (at period end):
(4)
Residential real estate
$
256,807
$
237,906
$
204,419
$
188,880
$
183,093
Commercial real estate
$
1,053,030
$
1,057,800
$
1,047,593
$
1,005,280
$
989,401
Commercial and industrial
$
248,525
$
228,045
$
219,757
$
212,975
$
169,401
Correspondent banks
$
112,510
$
100,182
$
114,945
$
94,640
$
85,409
Consumer and other
$
194,644
$
194,325
$
191,930
$
173,096
$
167,845
Asset quality data:
Allowance for credit losses to total loans
1.19%
1.18%
1.18%
1.16%
1.18%
Allowance for credit losses to non-performing loans
2,933%
4,705%
4,505%
4,070%
3,871%
Total non-performing loans
(5)
$
758
$
456
$
468
$
479
$
486
Non-performing loans to total loans
0.04%
0.03%
0.03%
0.03%
0.03%
Non-performing assets to total assets
(5)
0.03%
0.02%
0.02%
0.02%
0.02%
Net charge-offs (recoveries of) to average loans
(2)
(0.00)%
(0.00)%
(0.00)%
(0.00)%
0.01%
Net charge-offs (recovery) of credit losses
$
(2)
$
(7)
$
(3)
$
(5)
$
29
Interest rates and yields:
(2)
Loans
6.16%
6.01%
5.79%
5.55%
5.33%
Investment securities
2.80%
2.69%
2.46%
2.52%
2.26%
Total interest-earning assets
5.54%
5.34%
5.16%
4.89%
4.68%
Deposits
2.64%
2.76%
2.53%
2.39%
1.99%
FHLB advances and other borrowings
4.03%
4.10%
4.04%
3.19%
3.42%
Total interest-bearing liabilities
3.76%
3.86%
3.66%
3.41%
2.97%
Other information:
Full-time equivalent employees
197
199
196
194
198
(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 other real estate owned (OREO)
recorded.
7
USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended June 30,
2024
2023
Average
Balance
Interest
Yield/Rate
(1)
Average
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans
(2)
$
1,828,487
$
28,017
6.16%
$
1,569,266
$
20,847
5.33%
Investment securities
(3)
440,559
3,069
2.80%
422,544
2,382
2.26%
Other interest-earning assets
100,371
1,531
6.13%
87,536
1,051
4.82%
Total interest-earning assets
2,369,417
32,617
5.54%
2,079,346
24,280
4.68%
Non-interest-earning assets
109,805
104,196
Total assets
$
2,479,222
$
2,183,542
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing checking deposits
$
56,369
391
2.79%
$
53,561
200
1.50%
Saving and money market deposits
1,101,272
10,071
3.68%
940,095
6,968
2.97%
Time deposits
315,872
3,222
4.10%
277,001
2,145
3.11%
Total interest-bearing deposits
1,473,513
13,684
3.74%
1,270,657
9,313
2.94%
FHLB advances and other borrowings
162,000
1,622
4.03%
93,075
794
3.42%
Total interest-bearing liabilities
1,635,513
15,306
3.76%
1,363,732
10,107
2.97%
Non-interest-bearing demand deposits
610,370
601,778
Other non-interest-bearing liabilities
35,584
33,794
Total liabilities
2,281,467
1,999,304
Stockholders' equity
197,755
184,238
Total liabilities and stockholders' equity
$
2,479,222
$
2,183,542
Net interest income
$
17,311
$
14,173
Net interest spread
(4)
1.78%
1.71%
Net interest margin
(5)
2.94%
2.73%
(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
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
6,209
$
4,612
$
2,721
$
3,819
$
4,196
Plus: Provision for income taxes
1,967
1,426
787
1,250
1,333
Plus: Provision for credit losses
786
410
1,475
653
38
PTPP income
$
8,962
$
6,448
$
4,983
$
5,722
$
5,567
PTPP return on average assets:
(1)
PTPP income
$
8,962
$
6,448
$
4,983
$
5,722
$
5,567
Average assets
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
PTPP return on average assets
(2)
1.45%
1.06%
0.87%
1.01%
1.02%
Operating net income:
(1)
Net income
$
6,209
$
4,612
$
2,721
$
3,819
$
4,196
Less: Net gains (losses) on sale of securities
14
-
(883)
(955)
-
Less: Tax effect on sale of securities
(4)
-
224
242
-
Operating net income
$
6,199
$
4,612
$
3,380
$
4,532
$
4,196
Operating PTPP income:
(1)
PTPP income
$
8,962
$
6,448
$
4,983
$
5,722
$
5,567
Less: Net gains (losses) on sale of securities
14
-
(883)
(955)
-
Operating PTPP income
$
8,948
$
6,448
$
5,866
$
6,677
$
5,567
Operating PTPP return on average assets:
(1)
Operating PTPP income
$
8,948
$
6,448
$
5,866
$
6,677
$
5,567
Average assets
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
Operating PTPP return on average assets
(2)
1.45%
1.06%
1.03%
1.18%
1.02%
Operating return on average assets:
(1)
Operating net income
$
6,199
$
4,612
$
3,380
$
4,532
$
4,196
Average assets
$
2,479,222
$
2,436,103
$
2,268,811
$
2,250,258
$
2,183,542
Operating return on average assets
(2)
1.01%
0.76%
0.59%
0.80%
0.77%
Operating return on average equity:
(1)
Operating net income
$
6,199
$
4,612
$
3,380
$
4,532
$
4,196
Average equity
$
197,755
$
193,092
$
183,629
$
184,901
$
184,238
Operating return on average equity
(2)
12.61%
9.61%
7.30%
9.72%
9.13%
Operating Revenue:
(1)
$
17,311
$
15,158
$
14,376
$
14,022
$
14,173
3,211
2,464
1,326
2,161
1,846
14
-
(883)
(955)
-
$
20,508
$
17,622
$
16,585
$
17,138
$
16,019
Operating Efficiency Ratio:
(1)
$
11,560
$
11,174
$
10,719
$
10,461
$
10,452
$
20,508
$
17,622
$
16,585
$
17,138
$
16,019
56.37%
63.41%
64.63%
61.04%
65.25%
(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
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
201,020
$
195,011
$
191,968
$
182,884
$
183,685
Less: Intangible assets
-
-
-
-
-
Tangible stockholders' equity
$
201,020
$
195,011
$
191,968
$
182,884
$
183,685
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,630,632
19,650,463
19,575,435
19,542,290
19,544,777
Tangible book value per common share
(2)
$
10.24
$
9.92
$
9.81
$
9.36
$
9.40
Operating diluted net income per common share:
(1)
Operating net income
$
6,199
$
4,612
$
3,380
$
4,532
$
4,196
Total weighted average diluted shares of common stock
19,717,167
19,698,258
19,573,350
19,611,897
19,639,682
Operating diluted net income per common share:
$
0.31
$
0.23
0.17
0.23
0.21
Tangible Common Equity/Tangible Assets
(1)
$
201,020
$
195,011
$
191,968
$
182,884
$
183,685
(3)
$
2,458,270
2,489,142
2,339,093
2,244,602
2,225,914
Tangible Common Equity/Tangible Assets
8.18%
7.83%
8.21%
8.15%
8.25%
(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 SECOND QUARTER 2024 NASDAQ: 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 our 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, and 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 comparab le 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 this presentation. All numbers included in this presentation are unaudited unless otherwise noted. 2
Q2 2024 HIGHLIGHTS GROWTH Average deposits increased by $211.4 million or 11.3% compared to the second quarter 2023. Average loans increased $259.2 million or 16.5% compared to the second quarter 2023. Liquidity sources as of June 30, 2024, totaled $615 million in on-balance sheet and off-balance sheet sources. Tangible book value per common share (a non-GAAP measure) (1) was $10.24 at June 30, 2024, representing an increase of $0.84 or 8.9% increase from $9.40 at June 30, 2023. PROFITABILITY Net income was $6.2 million or $0.31 per diluted share, an increase of $2.0 million or 48% compared to the second quarter 2023. Net interest income before provision increased $3.1 million or 22.1% for the quarter compared to the second quarter 2023. ROAA was 1.01% in the second quarter 2024 compared to 0.77% for the second quarter 2023. ROAE was 12.63% in the second quarter 2024 compared to 9.13% for the second quarter 2023. CAPITAL/CREDIT The Company’s Board of Directors declared a cash dividend of $0.05 per share of the Company’s Class A common stock on July 22, 2024. The dividend will be paid on September 5, 2024, to shareholders of record at the close of business on August 15, 2024. At June 30, 2024, two loans were classified as nonaccrual for a total of $758 thousand. ACL coverage ratio was 1.19% at June 30, 2024, and 1.18% at June 30, 2023. 3
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans $735 $1,869 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Deposits $782 $2,057 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Total stockholders’ equity $86 $201 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 ACL/Total Loans 1.17% 1.19% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Net charge-offs ($1,019) ($2) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Nonperforming Assets/Total Assets 1.58% 0.03% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Net Interest Income $30 $59 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Efficiency ratio 94.15% 56.33% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 PTPP ROAA 0.24% 1.45% 201 6 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 (1) Loan amounts include deferred fees/costs. (2) ACL was calculated under the CECL standard methodology for all periods after January 1st 2023, and the incurred loss methodology for all periods before. (3) Non-GAAP financial measure. See reconciliation in this presentation. 4
FINANCIAL RESULTS In thousands (except per share data) Q2 2024 Q1 2024 Q2 2023 Balance Sheet (EOP) Total Securities $406,050 $433,030 $439,398 Total Loans (1) $1,869,249 $1,821,196 $1,595,959 Total Assets $2,458,270 $2,489,142 $2,225,914 Total Deposits $2,056,702 $2,102,794 $1,921,301 Total Equity (2) $201,020 $195,011 $183,685 Income Statement Net Interest Income $17,311 $15,158 $14,173 Non-Interest Income $3,211 $2,464 $1,846 Total Revenue $20,522 $17,622 $16,019 Provision for Credit Losses $786 $410 $38 Non-Interest Expense $11,560 $11,174 $10,452 Net Income $6,209 $4,612 $4,196 Diluted Earning Per Share (EPS) $0.31 $0.23 $0.21 Weighted Average Diluted Shares 19,717,167 19,698,258 19,639,682 (1) Loan amounts include deferred fees/costs. (2) Total Equity includes accumulated comprehensive loss of $44.7 million for Q2 2024, $45.4 million for Q1 2024, and $46.3 million for Q2 2023. 5
KEY PERFORMANCE INDICATORS Q2 2024 Q1 2024 Q2 2023 In thousands (except for TBV/share) GROWTH PROFITABILITY CAPITAL/CREDIT Total Assets (EOP) $2,458,270 $2,489,142 $2,225,914 Total Loans (EOP) $1,869,249 $1,821,196 $1,595,959 Total Deposits (EOP) $2,056,702 $2,102,794 $1,921,301 Tangible Book Value/Share (1)(4) $10.24 $9.92 $9.40 Return On Average Assets (ROAA) (3) 1.01% 0.76% 0.77% Return On Average Equity (ROAE) (3) 12.63% 9.61% 9.13% Net Interest Margin (3) 2.94% 2.62% 2.73% Efficiency Ratio 56.33% 63.41% 65.25% Non-Interest Expense/Avg Assets (3) 1.88% 1.84% 1.92% Tangible Common Equity/Tangible Assets (1) 8.18% 7.83% 8.25% Total Risk-Based Capital (2) 13.12% 12.98% 13.42% NCO/Avg Loans (3) 0.00% 0.00% 0.01% NPA/Assets 0.03% 0.02% 0.02% Allowance Credit Losses/Loans 1.19% 1.18% 1.18% (1) Non-GAAP financial measures. See reconciliation in this presentation. (2) Reflects the Company's regulatory capital ratios which are provided for informational 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 ($2.28) for Q2 2024, ($2.31) for Q1 2024 and ($2.37) for Q2 2023. 6
DEPOSIT PORTFOLIO Deposits AVG In millions $1,872 $1,941 $1,914 $2,049 $2,083 $277 $290 $282 $323 $316 $940 $1,011 $1,005 $1,098 $1,101 $53 $52 $50 $53 $56 $602 $588 $577 $575 $610 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Non -interest-bearing deposits Money market and savings Interest -bearing checking deposits Time deposits Deposit Cost +525 bps Q2'24 vs Q4'21 0.25% 5.25% 5.50% 5.50% 5.50% 5.50% 0.21% 1.99% 2.39% 2.53% 2.76% 2.64% Q4 2021 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Commentary Average deposits increased $35.3 million or 6.9% annualized compared to the prior quarter and increased $211.4 million or 11.3% compared to the second quarter 2023. Average DDA deposits increased $35.6 million or 24.9% annualized compared to prior quarter. Average DDA balances comprised 29.3% of total average deposits for second quarter 2024. Cost of deposits decreased 12 bps compared to prior quarter. Deposit beta of 46% since Q4 2021. 7
Total Loans (AVG) In millions $1,569 $1,611 $1,699 $1,782 $1,828 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Loan Yields 5.33% 5.55% 5.79% 6.01% 6.16% 0.02% 0.02% 0.00% 0.00% 0.00% 5.31% 5.53% 5.79% 6.01% 6.16% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Commentary Average loans increased $47.0 million or 10.6% annualized compared to prior quarter and $259.2 million or 16.5% compared to the second quarter 2023. Loan coupon increased 15 bps compared to the prior quarter and 85 bps compared to the second quarter 2023. 8
LOAN PRODUCTION Net Loan Production Trend In millions 7.20% 8.00% 8.00% 8.16% 8.01% $67 $51 $135 $55 $150 $46 $131 $91 $155 $108 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Loan Production/Line changes Loan Amortization/payoffs New loans average weighted coupon Loan Composition Trend EOP (1) In millions $948 $1,866 28% 14% 63% 56% 9% 30% Jun -20 Jun-24 Residential real estate Commercial real estate Commercial and industrial, Correspondent banks, and Consumer and other Commentary $155.2 million in new loan production in the second quarter 2024. Weighted average coupon on new loans was 8.01% for second quarter 2024, 185 bps above portfolio weighted average. 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) 2.73% 2.60% 2.65% 2.62% 2.94% $14,173 $14,022 $14,376 $15,158 $17,311 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Interest Income NIM Interest-Earning Assets Mix (AVG) 4% 4% 2% 5% 4% 20% 21% 19% 18% 19% 76% 75% 79% 77% 77% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total Loans Investment Securities Cash Balances & Equivalents Commentary Net interest income increased $2.2 million or 57.1% annualized compared to prior quarter and $3.1 million or 22.1% compared to the second quarter 2023. Net interest margin increased 32 bps compared to prior quarter and 21 bps compared to second quarter 2023. NIM drivers: rationalization of deposit cost, new loans at higher yields, and DDA growth. (1) Annualized. 10
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 3% Fixed Rate 45% Variale Rate 52% 20% 14% 66% Prime CMT SOFR Loan Repricing Schedule Variable/Hybrid Rate Loans 32% 37% 12% 19% yrs. 1-2 yrs 2-4 yrs ?3 yrs Static NII Simulation Year 1 & 2 Year 1 year 2 $7,000 $2,000 -$3,000 -100 2.3% -100 -$8,000 -3.1% -3.1% -6.7% 5.2% +100 -$13,000 11
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.18% 1.16% 1.18% 1.18% 1.19% $18,815 $19,493 $21,084 $21,454 $22,230 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.03% 0.03% 0.03% 0.03% 0.04% $486 $479 $468 $456 $758 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Non-accrual loans Non-performing loans to total loans Commentary Allowance for credit losses increased $776 thousand compared to prior quarter and $3.4 million compared to second quarter 2023. ACL coverage ratio was at 1.19% as of June 30, 2024. One C&I loan for $438 thousand and one residential real estate loan for $320 thousand were classified as nonaccrual as of June 30, 2024. Classified Loans to Total Loans 0.21% 0.27% 0.53% 0.44% 0.45% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 (1) Loans classified as substandard at period end. No loans classified doubtful at all the dates presented. 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% 14% 9% 47% 13% 6% Commentary Total loan balance at quarter end was $1,866 million (1). Commercial Real Estate (owner occupied and non-owner occupied) was 56% or $1,053 million of the total loan portfolio(1). CRE mix is diversified and granular. Retail non-owner occupied makes up 26% of total CRE or $274.1 million. CRE Loan Mix Land/Construction 4% Other 3% Retail 26% Multifamily 19% CRE - Owner Occupied 16% Office 12% Warehouse 12% Hotels 8% $1,053MM As of 6/30/24 Excludes deferred fees/cost Includes loan types: office, warehouse, retail, and other CRE Loan Portfolio (non-owner occupied and owner occupied) Weighted Average Loan Type LTV (1) DSCR (2) Average Loan Size (3) Retail 58% 1.81 $2.9 Multifamily 57% 1.45 $1.6 Office 56% 1.79 $1.5 Warehouse 59% 2.37 $1.5 Hotels 54% 2.22 $5.1 Other 57% 2.05 $1.7 Land/Construction 46% NA $2.1 (1) LTV - Loan to value ratio. (2) DSCR - Debt service coverage ratio. (3) Balance in millions. 13
CRE OFFICE PORTFOLIO Owner Occupied Office by Business Type In Millions as of 6/30/2024 $19.9 35% $17.9 31% $14.5 26% $4.4 8% Medical/Dental Other Professional Other <$1MM Commentary Total office loan portfolio (owner occupied and non-owner occupied) had 123 notes with an average balance of $1.5 million dollars, LTV of 56%, and DSCR of 1.79X at quarter end. The largest business type in the office portfolio is multi-tenant with 47% of the portfolio. South Florida’s office sector outperforms the national average with a lower vacancy rate of 12% and with a positive net absorption for three straight years as of Q1 2024. All three major markets within South Florida were ranked in the top 10 nationally for year-over-year rent growth. (1) Office Loan Portfolio Maturities and Repricing < 1 year 1 year to 3 years 3 years to 5 years 5 years to 10 years > 10 years 17% 27% 44% 12% 0% CRE Office Key Metrics As of 6/30/240 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: CBRE, a NYSE-listed and worldwide commercial real estate services & investment company with clients in 100+ countries, including over 95% of the Fortune 100. Published March 2024. 14
NON-INTEREST INCOME In thousands (except ratios) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Total Service fees $1,977 $1,651 $1,348 $1,329 $1,173 Wire Fees $557 $521 $518 $502 $428 Swap Fees $650 $285 $16 $97 $44 Other $770 $845 $814 $730 $701 Gain (loss) on sale of securities available for sale 14 - (883) (955) - Gain on sale of loans held for sale 417 67 105 255 94 Other income 803 746 756 1,532 579 Total non-interest income $3,211 $2,464 $1,326 $2,161 $1,846 Average total assets $2,479,222 $2,436,103 $2,268,811 $2,250,258 $2,183,542 Non-interest income/Average assets (1) 0.52% 0.41% 0.23% 0.38% 0.34% Commentary Service fees increased year over year due to wire and loan swap fees. Gain on sale of SBA 7a loans represent $417 thousand. Other Non-interest income increase predominately due to increase in treasury management fees. Non-interest income is 15.6% of total revenue for second quarter 2024 and 0.52% to average assets, both metrics are higher than prior quarters. (1) Annualized. 15
NON-INTEREST EXPENSE In thousands (except ratios) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Salaries and employee benefits $7,353 $6,310 $6,104 $6,066 $5,882 Occupancy 1,266 1,314 1,262 1,350 1,319 Regulatory assessments and fees 476 433 412 365 452 Consulting and legal fees 263 592 642 513 386 Network and information technology services 479 507 552 481 505 Other operating expense 1,723 2,018 1,747 1,686 1,908 Total non-interest expense $11,560 $11,174 $10,719 $10,461 $10,452 Efficiency ratio 56.33% 63.41% 68.27% 64.64% 65.25% Average total assets $2,479,222 $2,436,103 $2,268,811 $2,250,258 $2,183,542 Non-interest expense / Average assets (1) 1.88% 1.84% 1.87% 1.84% 1.92% Full-time equivalent employees 197 199 196 194 198 Commentary Salaries and benefits increased $1.0 million compared to the prior quarter due to sales incentives, management bonus accrual based on the Company’s performance, merit increases, and stock-based compensation. Non-interest expense to average assets remains under 2% for all periods. (1) Annualized. 16
CAPITAL Capital Ratios O? 2024 Leverage Ratio TCE/TA «2» Tier 1 Risk- Based Capital Total Risk- Based Capital AOCI ln Millon* 9.03% 8.18% 11.93% 13.12% ($44.7) Q12024 Q22023 8.91% 7.83% 11.80% 12.98% ($45.4) 9.32% 8.25% 12.27% 13.42% ($46.3) 5.00% NA 8.00% 10.00% Commentary The Company paid in June 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 25,000 shares of common stock at a weighted average cost per share of $12.04. Q2 2024 EOP common stock shares outstanding: 19,630,632. (1) Reflects the Company's regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, 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 28% non-interest-bearing deposits (EOP) 18
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) As of or For the Three Months Bided 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Pre-tax pre-provision ("PTPP") income: (1) Net income S 6.209 S 4,612 S 2,721 S 3,819 S 4,196 Rus: Revision for income tax es 1.967 1,426 787 1,250 1,333 Rus: R-ovision for credit losses 786 410 1,475 653 38 PTPP income $ 8.962 $ 6.448 S 4.983 $ 5,722 $ 5,567 PTPP return on average assets: (1) PTPP income S 8.962 S 6.448 S 4.983 S 5.722 S 5,567 Average assets S 2,479.222 S 2,436.103 S 2,268.811 S 2250.258 S 2,183.542 PTPP return on average assets (2) 1.45% 1.06% 0.87% 1.01% 1.02% Operating net income: (1) Net income s 6.209 S 4.612 S 2,721 S 3,819 S 4,196 Less: Net gains (tosses) on sale of securities 14 - (883) (955) - Less: Tax effect on sale of securities Operating net income £ (4) 6 199 461? £ 224 3 380 £ 242 4 53? £ 4196 1 ^ — 7 ^ -7— ^ —7 ^ "7 ^ "7 — Operating PTPP income: (1) PTPP income s 8.962 s 6.448 S 4.983 S 5.722 S 5,567 Less: Net gains (tosses) on sale of securities Operating PTFP income 14 8.948 6.448 t (883) 5.866 t (955) 6.677 $ 5.567 Operating PTPP return on average assets: (1) Operating PIH-»income S 8.948 S 6.448 S 5.866 S 6,677 S 5,567 Average assets S 2,479.222 S 2.436.103 S 2,268.811 S 2.250.258 S 2,183.542 Operating PI l-P return on average assets (2) 1.45% 1.06% 1.03% 1.18% 1.02% (1) Operating PTPP return on average assets: Operating PTPP income S Average assets S Operating PTFP return on average assets (2) Operating return on average assets: (1) Operating net income S Average assets S Operating return on average assets (2) Operating return on average equity: (1) Operating net income S Average equity S Operating return on average equity (2) Operating Revenue: (1) Net interest income S Non-interest income Less: Net gains (losses) on sale of securities
Operating revenue S Operating Efficiency Ratio: (1) Total non-interest expense S Operating revenue S Operating efficiency ratio 8.948 S 6.448 S 5.866 S 6,677 S 5,567 2.479.222 S 2.436.103 S 2,2 68.811 S 2.250.258 S 2,183.542 1.45% 1.06% 1.03% 1.18% 1.02% 6,199 S 4,612 S 3.380 S 4,532 S 4,196 2.479.222 S 2.436.103 S 2.268.811 S 2250.258 S 2,183.542 1.01% 0.76% 0.59% 0.80% 0.77% 6,199 S 4.612 S 3.380 S 4.532 S 4.196 197,755 S 193.092 S 183.629 S 184.901 S 184.238 12.61% 9.61% 7.30% 9.72% 9.13% 17,311 S 15,158 S 14,376 S 14.022 S 14,173 3,211 2.464 1,326 2,161 1.846 14 - (883) (955) - 20.508 S 17.622 S 16.585 S 17,138 S 16.019 11,560 S 11,174 S 10,719 S 10.461 S 10.452 20,508 S 17.622 S 16,585 S 17,138 S 16.019 56.37% 63.41% 64.63% 61.04% 65.25% 1. The Company believes these non-GAAP measurements are key indicators of the ongoing earnings pew er of the Company. 2. Annualized. 19
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of or For the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Tangible book value per common share (at period-end): (1) Total stockholders' equity $ 201,020 S 195,011 S 191.968 S 182.884 S 183,685 Less: Intangible assets - - - - - Tangible stockholders' equity $ 201,020 $ 195,011 S 191.968 S 182.884 S 183,685 Total s hares is sued and outstanding (at period-end): Total common shares issued and outstanding 19.630,632 19.650.463 19.575.435 19.542.290 19.544.777 Tangible book value per common share (2) $ 10.24 $ 9.92 $ 9.81 $ 9.36 $ 9.40 Operating diluted net income per common share: Operating net income Total weighted average diluted shares of common stock (1) $ 6,199 19 717 167 $ 4,612 19 698 258 S 3,380 19 573 350 S 4,532 19 611 897 S 4,196 19 639 682 Operating diluted net income per common share: S 0.31 S 0.23 S 0.17 S 1 V 1 1 y V V 1 0.23 S 021 Tangible Common Equity/Tangible Assets (1) Tangible stockholders’ equity $ 201,020 $ 195,011 $ 191.968 $ 182.884 $ 183,685 Tangible total assets (3) $ 2.458.270 $ 2.489.142 $ 2,339,093 $ 2244.602 S 2,225,914 Tangible Common Equity/Tangible Assets 8.18% 7.83% 821% 8.15% 825% (1 ) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings pow 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