Anderson said the securities restructuring was deliberate and aimed at improving net interest margin. The securities sold represented about 12.6% of the AFS portfolio as of Nov. 30, 2025, and carried a weighted average yield of 1.70%. Proceeds were reinvested into loans yielding 6.15%, according to management.Excluding those two items, management said operational diluted EPS was $0.44, which it described as consistent with the prior quarter. Anderson said that, on this same adjusted basis, operating return ...

Financial Data and Key Metrics Changes - Total assets reached $2.8 billion, up 8.1% year-over-year [2] - Loans grew by $216 million, or 11%, reflecting strong commercial activity [2] - Deposits increased to $171 million, or 7.9%, demonstrating continued franchise growth [2] - Net interest income expanded to 3.27%, improving from 3.16% in the prior year [2] - Non-performing loans stood at 0.14% of total loans, indicating excellent credit quality [3] - Tangible book value per share increased 10.8% year-over-year to $11.97 [3] - GAAP-diluted EPS was $0.07, with operational diluted EPS at $0.44, consistent with the previous quarter [4] Business Line Data and Key Metrics Changes - Average loans increased $31.9 million, or 6.02% annualized compared to the prior quarter [10] - Gross loan production totaled $196 million in Q4, with $83.5 million from correspondent banking [12] - Net interest income increased $933,000 on a linked quarter basis, representing 17.4% annualized growth [13] - Portfolio yield declined modestly to 6.16% due to Federal Reserve rate cuts [11] Market Data and Key Metrics Changes - Average deposits were stable, down $3.9 million compared to the prior quarter but up $314.6 million year-over-year [10] - Interest-bearing deposit rates decreased 27 basis points to 3.02% [10] - Total deposit costs improved 25 basis points quarter-over-quarter [10] Company Strategy and Development Direction - The company aims to expand and strengthen its deposit base, focusing on multi-vertical and relationship-driven strategies [26] - Key business lines include Business Banking, Private Client Group, Association Banking, and Correspondent Banking, each with clear growth plans [27][28][29] - The strategy emphasizes building sticky, relationship-anchored deposits and expanding production capacity [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to execute its plans for 2026, focusing on profitability and shareholder value [26] - The company anticipates further NIM improvement supported by rate cuts and disciplined deposit pricing strategies [14] - Management highlighted the importance of maintaining a healthy loan-to-deposit ratio between 90% and 95% [40] Other Important Information - The board approved a 25% increase in quarterly cash dividends to $0.12 per share [5] - The bank's capital ratios exceed regulatory requirements comfortably [5] - The company executed a $40 million subordinated debt issuance, primarily used for share repurchase [3] Q&A Session Summary Question: Deposit trends and shrinkage at year-end - Management noted a significant deposit move of over $100 million from a long-term client, which is expected to rebuild over time [36] - A $50 million swing in correspondent banking deposits was also identified, which has been recovered in January [37] Question: Loan-to-deposit ratio expectations - Management prefers a loan-to-deposit ratio between 90% and 95%, indicating a desire for liquidity [40] Question: SBA vertical opportunity - The SBA initiative has been growing prudently, with plans to increase annual volume to $40 million or $50 million over the next three years [42] Question: Capital strategy and priorities - The focus remains on building capital and returning it to shareholders, with no significant plans for additional actions beyond producing good earnings [48]

Financial Data and Key Metrics Changes - Total assets reached $2.8 billion, up 8.1% year-over-year [2] - Loans grew by $216 million, or 11%, reflecting strong commercial activity [2] - Deposits increased to $171 million, or 7.9% [2] - Net interest income expanded to 3.27%, improving from 3.16% in the prior year [2] - Non-performing loans stood at 0.14% of total loans, indicating excellent credit quality [3] - Tangible book value per share increased 10.8% year-over-year to $11.97 [3] - GAAP-diluted EPS reported at $0.07, with operational diluted EPS at $0.44 [4] Business Line Data and Key Metrics Changes - Average loans increased $31.9 million, or 6.02% annualized compared to the prior quarter [10] - Gross loan production totaled $196 million in Q4, with $83.5 million from correspondent banking [12] - Average deposits were stable, down $3.9 million compared to the prior quarter but up $314.6 million year-over-year [10] - Net interest income increased by $933,000 on a linked quarter basis, representing 17.4% annualized growth [13] Market Data and Key Metrics Changes - The bank's loan portfolio increased to just under $2.2 billion, with commercial real estate representing 57% [18] - The quality of the loan portfolio remains strong, with a past-due ratio at 0.14% [19] - The bank's securities portfolio ended the quarter with $461.4 million, with a quarterly portfolio yield of 3.01% [15] Company Strategy and Development Direction - The company aims to expand and strengthen its deposit base as a top priority for 2026 [25] - Focus on four strong business lines: Business Banking, Private Client Group, Association Banking, and Correspondent Banking [26] - Plans to launch a new lending and deposit gathering team in targeted small business markets [27] - Emphasis on relationship-driven growth rather than rate-driven [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's business model and strategic actions to enhance earnings power in 2026 [3] - Anticipation of further NIM improvement supported by rate cuts and ongoing deposit strategy execution [13] - The bank's capital ratios exceed regulatory requirements, indicating a solid financial position [6] Other Important Information - The board approved a 25% increase in quarterly cash dividend to $0.12 per share [6] - The company executed a $40 million subordinated debt issuance, primarily used for share repurchase [3] Q&A Session Summary Question: Deposit trends and shrinkage at year-end - Management noted a significant deposit move of over $100 million from a long-term client, which is expected to rebuild over time [35] Question: Loan-to-deposit ratio expectations - Management prefers a loan-to-deposit ratio between 90-95% and anticipates rebuilding deposits in 2026 [39] Question: SBA vertical expansion - The SBA initiative has been growing prudently, aiming for $40-$50 million in annual volume over the next three years [41] Question: Capital strategy and priorities - The focus remains on building capital and returning it to shareholders, with no significant plans for new initiatives [47] Question: Margin expectations for the first quarter - Management expects NIM to be flat to slightly up in the first quarter, with potential for growth from rate cuts [54] Question: Expense outlook - Anticipated expenses to gradually increase with new hires, targeting a low 50% efficiency ratio [65] Question: Fee income outlook - Expected non-interest income to build around $3.5-$3.8 million range for 2026, driven by various fee-generating activities [68]

Financial Data and Key Metrics Changes - Total assets reached $2.8 billion, up 8.1% year-over-year [2] - Loans grew by $216 million, or 11%, reflecting strong commercial activity [2] - Deposits increased to $171 million, or 7.9%, demonstrating continued franchise growth [2] - Net interest income expanded to 3.27%, improving from 3.16% in the prior year [2] - Non-performing loans stood at 0.14% of total loans, indicating excellent credit quality [3] - Tangible book value per share increased 10.8% year-over-year to $11.97 [3] - GAAP-diluted EPS was reported at $0.07, with operational diluted EPS at $0.44 [4] Business Line Data and Key Metrics Changes - Average loans increased $31.9 million, or 6.02% annualized compared to the prior quarter [10] - Gross loan production totaled $196 million in Q4, with 43% from correspondent banking [12] - Average deposits were stable, down $3.9 million compared to the prior quarter but up $314.6 million year-over-year [10] - Non-interest income was $3.3 million for Q4, consistent with prior quarters, excluding the securities loss [21] Market Data and Key Metrics Changes - The bank's loan portfolio increased to just under $2.2 billion, with commercial real estate representing 57% [19] - The average interest-bearing deposit rates decreased to 3.02%, down from 3.29% in the third quarter [10] - The bank's balance sheet is liability sensitive, with 61% of the loan portfolio being variable-rate or hybrid [15] Company Strategy and Development Direction - The company aims to expand and strengthen its deposit base, focusing on relationship-driven growth rather than rate-driven [26] - Key business lines include Business Banking, Private Client Group, Association Banking, and Correspondent Banking, each with clear plans for growth [26][27] - The strategy for 2026 includes launching a new lending and deposit gathering team in targeted markets [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to build back deposits lost at year-end and emphasized the importance of deposit growth for 2026 [36] - The company anticipates further NIM improvement supported by rate cuts and ongoing execution of its deposit strategy [13] - The tax expense is expected to be modeled at 26.4% going forward, reflecting compliance with state tax liabilities [9][57] Other Important Information - The board approved a 25% increase in the quarterly cash dividend to $0.12 per share [5] - The company completed a $40 million subordinated debt issuance, primarily used for share repurchase [3] Q&A Session Summary Question: Deposit trends and year-end shrinkage - Management noted a significant deposit move of over $100 million from a long-term client, which is expected to rebuild over time [36] Question: Loan-to-deposit ratio preferences - Management prefers a loan-to-deposit ratio between 90-95% for optimal liquidity [39] Question: SBA vertical expansion - The SBA initiative has been growing prudently, with plans to increase annual volume to $40-50 million over the next three years [42] Question: Capital strategy and priorities for 2026 - The focus remains on building capital and returning it to shareholders, with no significant plans for new initiatives beyond organic growth [47] Question: Margin expectations for the first quarter - Management expects NIM to be flat to slightly up in the first quarter, influenced by deposit runoff and potential rate cuts [54] Question: Expense outlook and new hires - The expense base is expected to gradually increase with new hires, targeting a low 50% efficiency ratio [66] Question: Fee income outlook - Non-interest income is anticipated to build around $3.5-$3.8 million for 2026, driven by various fee-generating activities [68]

EARNINGS PRESENTATION FOURTH QUARTER 2025 NASDAQ: USCB 1 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," "e ...

Key Takeaways USCB Financial, AMAL, CDRE, CADE, MCB recently announced dividend hikes despite ongoing economic uncertainty.USCB declared a 13-cent dividend, reflecting its consistent payout growth and a payout ratio of 25%.Cadence Bank raised its dividend to 34 cents, marking its sixth increase in five years with a 2.4% yield.The U.S. economy remains resilient; however, investors are concerned over various domestic and geopolitical headwinds that may trigger sudden bouts of market volatility. The U.S. GDP g ...

Core Insights - USCB Financial Holdings, Inc. reported revenue of $25.53 million for the quarter ended December 2025, marking an 11% year-over-year increase, while EPS rose to $0.44 from $0.34 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $26.11 million, resulting in a surprise of -2.24%, and the EPS also missed the consensus estimate of $0.51 by -13.73% [1] Financial Performance Metrics - The efficiency ratio was reported at 79.2%, significantly higher than the estimated average of 49.6% by three analysts [4] - The net interest margin stood at 3.3%, aligning with the average estimate based on three analysts [4] - Average interest-earning assets were $2.7 billion, slightly below the average estimate of $2.75 billion from two analysts [4] - Total non-performing loans amounted to $3.14 million, exceeding the average estimate of $1.41 million from two analysts [4] - Net charge-offs to average loans were reported at 0%, compared to the average estimate of 0.1% [4] - Net interest income before provision for loan losses was $22.21 million, slightly below the average estimate of $22.65 million from three analysts [4] - Total non-interest income was $3.32 million, lower than the average estimate of $3.79 million from three analysts [4] - Gain on sale of loans held for sale, net, was $0.2 million, slightly above the estimated average of $0.18 million from two analysts [4] Stock Performance - USCB Financial shares have returned +7.1% over the past month, outperforming the Zacks S&P 500 composite, which changed by +0.7% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

USCB Financial Holdings, Inc. (USCB) came out with quarterly earnings of $0.44 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.73%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.45, delivering a surprise of +7.14%.Over the last four quarter ...

Core Viewpoint - USCB Financial Holdings, Inc. reported a significant decline in net income for Q4 2025, with net income of $1.4 million or $0.07 per diluted share, down from $6.9 million or $0.34 per diluted share in Q4 2024, primarily due to strategic portfolio restructuring and tax liabilities [1][2][3] Profitability - Fully diluted EPS for Q4 2025 was $0.07, reflecting an after-tax impact of ($0.31) per diluted share from a portfolio restructuring strategy and an additional ($0.06) per diluted share related to tax liabilities from prior periods [2] - Operating diluted EPS for Q4 2025, excluding these impacts, was $0.44, consistent with the prior quarter [2] - Return on average assets (ROAA) for Q4 2025 was 0.19%, down from 1.08% in Q4 2024, while operating ROAA was 1.14%, slightly up from 1.08% [6] - Return on average equity (ROAE) for Q4 2025 was 2.55%, down from 12.73% in Q4 2024, while operating ROAE was 15.05%, up from 12.73% [6] Balance Sheet - Total assets increased to $2.8 billion at December 31, 2025, an increase of $210.3 million or 8.1% from $2.6 billion at December 31, 2024 [5] - Total loans held for investment rose to $2.2 billion, an increase of $216.4 million or 11.0% from $2.0 billion at December 31, 2024 [10] - Total deposits reached $2.3 billion, up by $171.1 million or 7.9% from $2.2 billion at December 31, 2024 [10] - Total stockholders' equity was $217.2 million, an increase of $1.8 million or 0.8% from $215.4 million at December 31, 2024 [10] Asset Quality - The allowance for credit losses increased by $1.4 million to $25.5 million at December 31, 2025, representing 1.16% of total loans, down from 1.22% at December 31, 2024 [10] - The provision for credit loss was $480 thousand for Q4 2025, a decrease of $550 thousand compared to $1.0 million for Q4 2024 [10] - The ratio of non-performing loans to total loans was 0.14% for both quarters ended December 31, 2025, and December 31, 2024 [10] Non-interest Income and Non-interest Expense - Non-interest income was negative $4.2 million for Q4 2025, compared to positive income of $3.6 million for Q4 2024, primarily due to a $7.5 million pre-tax loss on the sale of securities [10] - Non-interest expense for Q4 2025 was $14.3 million, compared to $12.9 million for Q4 2024 [10] Capital - The total risk-based capital ratios for the Company and the Bank were 13.91% and 13.67%, respectively, well above regulatory requirements [10] - Tangible book value per common share was $11.97 at December 31, 2025, an increase of $1.16 or 10.8% from $10.81 at December 31, 2024 [10]

Financial Performance - USCB Financial Holdings reported a net income of $1.4 million or $0.07 per fully diluted share for Q4 2025, down from $6.9 million or $0.34 per fully diluted share in Q4 2024[2]. - Net income for Q4 2025 was $1,363,000, a decrease of 80.3% from $6,904,000 in Q4 2024[23]. - PTPP income for the same period was $3,754 million, compared to $11,910 million in the prior quarter, reflecting a decrease in profitability[34]. - Operating diluted EPS for Q4 2025 was $0.44, consistent with the prior quarter, while the return on average assets (ROAA) was 0.19% and return on average equity (ROAE) was 2.55%[3]. - Return on average assets decreased to 0.19% for the latest quarter, down from 1.27% in the previous quarter[28]. - Return on average equity fell to 2.55% from 15.74% in the previous quarter, reflecting a significant decline in profitability[28]. Asset and Loan Growth - Total assets increased by $210.3 million or 8.1% to $2.8 billion at December 31, 2025, compared to $2.6 billion at the same date in 2024[7]. - Total assets as of December 31, 2025, were $2,791,540,000, up from $2,581,216,000 as of December 31, 2024[25]. - Total assets increased to $2,799,863 million as of December 31, 2025, compared to $2,544,592 million a year earlier, reflecting a growth of 10%[28]. - Total loans held for investment rose by $216.4 million or 11.0% to $2.2 billion at December 31, 2025, from $2.0 billion a year earlier[7]. - Loans held for investment increased to $2,189,257,000 as of December 31, 2025, compared to $1,972,848,000 a year earlier[25]. - Loans held for investment rose to $2,130,898 million, up from $1,958,566 million year-over-year, representing an increase of 8.8%[28]. Income and Expenses - Net interest income before provision for credit losses was $22.2 million for Q4 2025, an increase of $2.8 million or 14.7% compared to $19.4 million in Q4 2024[7]. - Total interest income for Q4 2025 was $37,635,000, an increase of 13.5% from $34,167,000 in Q4 2024[23]. - Net interest income after provision for credit losses for the full year 2025 reached $81,333,000, up 21.7% from $66,779,000 in 2024[23]. - Total non-interest expense for the full year 2025 was $52,009,000, an increase of 10.6% from $47,042,000 in 2024[23]. - Total non-interest expense rose to $14,275 million, compared to $13,048 million in the previous quarter, indicating rising operational costs[34]. Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on March 5, 2026, to shareholders of record on February 17, 2026[13]. - Cash dividends declared per share increased to $0.10 in Q4 2025 from $0.05 in Q4 2024[23]. Efficiency and Ratios - The efficiency ratio for Q4 2025 was 79.18%, significantly higher than 55.92% for Q4 2024[7]. - The efficiency ratio worsened to 79.18% compared to 52.28% in the previous quarter, indicating increased operational costs relative to income[28]. - The operating efficiency ratio was 55.92%, an increase from 52.22% in the prior quarter, suggesting a decline in operational efficiency[34]. - The leverage ratio as of December 31, 2025, was 8.46%, slightly down from 9.53% a year prior[25]. - The allowance for credit losses to total loans ratio was 1.16%, slightly down from 1.17% in the previous quarter, indicating stable credit quality management[28]. - The tangible common equity to tangible assets ratio improved to 7.78%, up from 7.55% in the previous quarter, indicating stronger capital management[37]. Credit Quality - Non-performing loans increased to $3,138 million, up from $2,707 million a year earlier, indicating a rise in credit risk[28]. - Provision for credit losses was $480 million, a significant increase from $105 million in the previous quarter, reflecting a more cautious outlook on credit quality[34].