Financial Performance - The Company reported net income of $8.9 million or $0.45 per diluted share for Q3 2025, a 28.6% increase from $6.9 million or $0.35 per diluted share in Q3 2024[139][151] - For the nine months ended September 30, 2025, net income increased to $24.7 million or $1.23 per diluted share, up 39.2% from $17.8 million or $0.90 per diluted share in the same period of 2024[139][152] - The company reported a net income of $8,939 for Q3 2025, an increase from $8,140 in Q2 2025, reflecting a positive trend in earnings[270] - Operating net income for Q3 2025 was $8,960,000, up from $6,949,000 in Q3 2024, representing a year-over-year increase of 28.93%[272] - Operating diluted net income per common share rose to $0.45 in Q3 2025, compared to $0.35 in Q3 2024, marking a 28.57% increase[272] Net Interest Income and Margin - Net interest income for Q3 2025 increased by $3.2 million or 17.5% to $21.3 million compared to $18.1 million in Q3 2024[142] - The net interest margin expanded to 3.14% in Q3 2025 from 3.03% in Q3 2024[142] - Net interest income for Q3 2025 was $21.3 million, an increase of $3.2 million or 17.5% compared to Q3 2024, driven by higher income from an expanded loan portfolio and reduced rates on interest-bearing liabilities[165] - Net interest margin (NIM) for Q3 2025 was 3.14%, up from 3.03% in Q3 2024, reflecting a reduction in the weighted average rate paid on interest-bearing liabilities[166] - For the nine months ended September 30, 2025, net interest income was $61.4 million, an increase of $10.8 million or 21.4% from $50.6 million in the same period of 2024[167] - NIM for the nine months ended September 30, 2025 was 3.17%, compared to 2.87% for the same period in 2024, indicating a 30 basis point expansion due to higher loan yields and growth in loan average balance[168] Assets and Loans - Total assets reached $2.77 billion as of September 30, 2025, an increase of $264.0 million or 10.5% from the previous year[142] - Total loans held for investment increased to $2.13 billion, up $199.6 million or 10.3% from September 30, 2024[142] - Total net loans increased by $158.1 million, or 10.7%, to $2.13 billion as of September 30, 2025, compared to December 31, 2024[199] - Total loans increased by $158.1 million, or 10.7% annualized, to $2.13 billion at September 30, 2025, compared to $1.97 billion at December 31, 2024[187] Deposits - Total deposits were $2.46 billion, reflecting an increase of $329.0 million or 15.5% from the same period last year[142] - Total deposits increased by $281.6 million, or 17.3% annualized, to $2.46 billion at September 30, 2025, compared to $2.17 billion at December 31, 2024[187] - The total customer deposits as of September 30, 2025, amounted to $2.457 billion, with an average rate paid of 2.53%[229] Non-Interest Income and Expenses - Non-interest income for Q3 2025 increased by $246 thousand or 7.2% compared to Q3 2024, primarily driven by growth in service fees and income from bank-owned life insurance[176] - For the nine months ended September 30, 2025, non-interest income rose by $1.7 million or 18.2% compared to the same period in 2024, driven by growth in service fees and gains on loan sales[177] - Non-interest expense for the three months ended September 30, 2025, increased by $1.6 million, or 13.9%, compared to the same period in 2024, primarily driven by a $709 thousand rise in salaries and employee benefits[180] - For the nine months ended September 30, 2025, non-interest expense increased by $3.5 million, or 10.4%, compared to the same period in 2024, with salaries and employee benefits accounting for a $2.6 million increase[181] Credit Quality - The allowance for credit losses (ACL) to total loans was 1.17% at September 30, 2025, down from 1.22% at December 31, 2024[142] - The provision for credit losses for Q3 2025 was $105 thousand, significantly down from $931 thousand in Q3 2024, attributed to slower loan portfolio growth[171] - Non-performing loans decreased to $1.31 million, representing 0.06% of total loans, down from $2.71 million or 0.14% as of December 31, 2024[212] - The total ending balance for credit losses was $23.067 million, with a provision for credit losses of $1.968 million for the nine months ended September 30, 2025[221][222] Capital and Liquidity - Total risk-based capital as of September 30, 2025, is $299,147, representing a ratio of 13.93%, exceeding the minimum capital requirements[263] - The Tier 1 risk-based capital ratio as of September 30, 2025, is 12.73%, significantly above the required minimum of 6.00%[263] - The company expects to maintain adequate liquidity resources from core deposits, loan repayments, and investment portfolio cash flows[261] - The Company has established a comprehensive liquidity risk management process, integrating it into risk management and ALM policy[259] Stockholder Equity - Total stockholders' equity decreased to $209,095,000 from $213,916,000 year-over-year, a decline of 2.67%[272] - Tangible Common Equity/Tangible Assets ratio was 7.55% as of September 30, 2025, down from 8.54% a year ago, indicating a decrease of 11.61%[272] - Total common shares issued and outstanding decreased to 18,107,385 from 19,620,632 year-over-year, a reduction of 7.71%[272] - Tangible book value per common share increased to $11.55 as of September 30, 2025, compared to $10.90 a year ago, reflecting a growth of 5.95%[272] Investment Portfolio - Aggregate AFS and HTM investment securities increased by $55.6 million, or 17.5% annualized, to $480.5 million at September 30, 2025, from $424.9 million at December 31, 2024[193] - The investment portfolio consists primarily of U.S. Government and U.S. Government Agencies issued bonds, mortgage-backed securities, and corporate bonds, with varying contractual maturities and coupons[190]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8.9 million or $0.45 per diluted share, an increase from $6.9 million or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][8] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved to 15.74% from 13.38% [3][8] - The efficiency ratio strengthened to 52.28%, reflecting disciplined expense management [3][21] - Net interest margin expanded to 3.14% compared to 3.03% in the same quarter last year [3][10] Business Line Data and Key Metrics Changes - Net interest income before provision for credit losses was $21.3 million, up $3.2 million or 17.5% from the prior year [3][13] - Loans held for investment grew to $2.1 billion, an increase of more than $199 million or 10.3% from $1.9 billion on September 30, 2024 [4][19] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year, indicating strong credit quality [4][18] Market Data and Key Metrics Changes - Total assets reached $2.8 billion as of September 30, 2025, representing a 10.5% year-over-year growth [3] - Total deposits ended the quarter at $2.5 billion, marking a robust 15.5% year-over-year increase [3][4] - Average deposits increased to $166 million or nearly 29% compared to the prior quarter and are up $380 million or 18% year over year [10] Company Strategy and Development Direction - The company focuses on relationship-based growth and has diversified its deposit-focused business verticals, which now account for 27% of total deposits [4][6] - The management emphasized the importance of Florida's strong economy as a key driver of success, with real GDP growth tracking around 2.4% in 2025 [23][24] - The company is optimistic about growth in the association banking vertical, with plans to potentially double the book of business in the next 18 months [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, citing solid fundamentals and a vibrant market [57] - The company anticipates improvements in net interest margin as excess cash is put to work in loan volume and securities portfolio [14][47] - Management noted that the current economic environment aligns well with the company's strategy, particularly in serving middle-market businesses and real estate development [24] Other Important Information - The company completed a $40 million subordinated debt issuance, with most proceeds used to repurchase approximately 2 million shares at a weighted average price of $17.19 per share [5][22] - The allowance for credit losses totaled $25 million at year-end, representing 1.17% of total loans, indicating a strong credit position [18] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10 million and occurred in August, impacting loan yields and margin [28] Question: Is the loan production in September a sign of sustained momentum? - Management believes it is a sign of sustained momentum, with a strong pipeline for Q4 [29] Question: How is competition impacting loan pricing? - The market is very competitive, and pricing is based on relationships rather than transactions [30] Question: What is the outlook for the margin in Q4? - A margin of 3.27% is expected for Q4, with potential for further expansion [36] Question: What are the expectations for non-interest income? - Non-interest income is expected to remain stable, with activity in wire fees and swap fees anticipated to continue [37] Question: What growth opportunities exist in the association banking business? - There is significant potential for growth in the association banking vertical, with plans to scale operations [38][39]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8,900,000 or $0.45 per diluted share, an increase from $6,900,000 or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][10] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved from 13.38% to 15.74% [3][10] - The efficiency ratio strengthened to 52.28%, reflecting disciplined expense management [3][10] - Net interest margin expanded to 3.14% compared to 3.03% in the same quarter last year [3][10] - Total assets reached $2,800,000,000, marking a 10.5% year-over-year growth [4] - Total deposits increased by 15.5% year-over-year to $2,500,000,000 [4] Business Line Data and Key Metrics Changes - Loans held for investment grew to $2,100,000,000, an increase of 10.3% from $1,900,000,000 a year ago [5] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year [6] - The allowance for credit losses totaled $25,000,000, representing 1.17% of total loans [6] - The diversified deposit-focused business verticals accounted for $672,000,000 or 27% of total deposits [4] Market Data and Key Metrics Changes - Average deposits increased by $166,000,000 or nearly 29% compared to the prior quarter and are up $380,000,000 or 18% year-over-year [13] - Interest-bearing deposit costs remained stable at 3.29%, down 47 basis points from the same period last year [15] Company Strategy and Development Direction - The company focuses on relationship-based growth and has added new production personnel to support growth plans [5][7] - The strategy includes preparing for a lower rate environment, with expectations of benefiting from rate cuts in the short term [19][20] - The company is bullish on the association banking vertical, anticipating significant growth opportunities in this segment [52] Management's Comments on Operating Environment and Future Outlook - The management highlighted Florida's strong economy, with real GDP growth tracking around 2.4%, which supports the company's growth strategy [32] - The management expressed confidence in sustaining momentum into 2026, emphasizing the strength of the business model and market conditions [34][75] Other Important Information - The company completed a $40,000,000 subordinated debt issuance and repurchased approximately 2,000,000 shares at a weighted average price of $17.19 per share [6][11] - Tangible book value per share grew to $11.55, reflecting the impact of the share repurchase [6][13] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10,000,000 and occurred in August, impacting loan yields and margin [38] Question: Is the loan production in September a sign of sustained momentum? - Management indicated that September was a record-setting month and the pipeline looks strong for Q4 [40] Question: How is competition impacting loan pricing? - The market is competitive, and pricing is based on relationships rather than transactions [41] Question: What is the outlook for the margin given additional costs from subordinated debt? - The margin is expected to remain around 3.27% for Q4, with potential for improvement as loan growth resumes [49] Question: What are the expectations for non-interest income and SBA activity? - Non-interest income is expected to remain stable, with some impact from the government shutdown on SBA activity [50] Question: What growth opportunities exist in the condo association banking business? - The company is optimistic about this segment, with plans to potentially double the book of business in the next 18 months [53]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8.9 million or $0.45 per diluted share, an increase from $6.9 million or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][8] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved to 15.74% from 13.38% [3][8] - The efficiency ratio strengthened to 52.28%, reflecting disciplined expense management [3][10] - Net interest margin expanded to 3.14% compared to 3.03% in the same quarter last year [3][10] - Total assets reached $2.8 billion, marking a 10.5% year-over-year growth [3][4] Business Line Data and Key Metrics Changes - Net interest income before provision for credit losses was $21.3 million, up $3.2 million or 17.5% from the prior year [3][13] - Loans held for investment grew to $2.1 billion, an increase of more than $199 million or 10.3% from $1.9 billion a year ago [4][10] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year, indicating strong credit quality [4][19] Market Data and Key Metrics Changes - Total deposits ended the quarter at $2.5 billion, marking a robust 15.5% year-over-year increase [3][4] - Average deposits increased to $166 million or nearly 29% compared to the prior quarter and are up $380 million or 18% year over year [10][11] Company Strategy and Development Direction - The company focuses on relationship-based growth and has added new production personnel to support growth plans in diversified deposit-focused business verticals [4][10] - The management highlighted the strength of Florida's economy as a key driver of success, with real GDP growth tracking around 2.4% in 2025 [25][26] - The company aims to leverage opportunities in the association banking vertical, with plans to potentially double the book of business in the next 18 months [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, citing solid business fundamentals and a vibrant market [54] - The company anticipates improvements in net interest margin as excess cash is put to work in loan volume and securities portfolio [14][45] - Management noted that the current economic environment aligns well with the company's strategy, particularly in serving middle market businesses and real estate development [26] Other Important Information - The company completed a $40 million subordinated debt issuance, primarily used for share repurchase, which underscores confidence in the intrinsic value of its stock [5][8] - Tangible book value per share grew to $11.55, reflecting the impact of the share repurchase [5][10] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10 million and occurred in August, impacting loan yields and margin [29] Question: Is the loan production in September a sign of sustained momentum? - Management believes it is a sign of sustained loan momentum, with a strong pipeline for Q4 [31] Question: How is competition impacting loan pricing? - The market is very competitive, and pricing is based on relationships rather than transactions [32] Question: What is the outlook for the margin in Q4? - A margin of 3.27% is expected for Q4, with further rate cuts anticipated [37][44] Question: What are the expectations for non-interest income? - Non-interest income is expected to remain stable, with activity in wire fees and swap fees anticipated to continue [38] Question: What growth opportunities exist in the association banking business? - The company is bullish on the association banking vertical, with significant growth potential identified [39]

EARNINGS PRESENTATION THIRD 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," "ex ...

Core Insights - USCB Financial Holdings, Inc. reported revenue of $24.96 million for the quarter ended September 2025, marking a year-over-year increase of 15.8% and an EPS of $0.45 compared to $0.35 a year ago [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $25.07 million, resulting in a surprise of -0.45%, while the EPS exceeded expectations by 7.14% against a consensus estimate of $0.42 [1] Financial Performance Metrics - Efficiency Ratio stood at 52.3%, higher than the three-analyst average estimate of 50.9% [4] - Net Interest Margin was reported at 3.1%, slightly below the estimated 3.2% [4] - Net charge-offs to average loans were at 0%, better than the estimated 0.1% [4] - Average interest-earning assets totaled $2.69 billion, exceeding the estimate of $2.65 billion [4] - Total Non-Performing Loans were $1.31 million, lower than the average estimate of $1.43 million [4] - Total Non-Performing Assets also stood at $1.31 million, compared to the estimated $1.43 million [4] - Net interest income before provision for loan losses was $21.27 million, below the estimate of $21.51 million [4] - Total Non-Interest Income reached $3.68 million, surpassing the average estimate of $3.56 million [4] - Gain on sale of loans held for sale, net was $0.13 million, lower than the estimated $0.25 million [4] Stock Performance - USCB Financial's shares returned -0.4% over the past month, while the Zacks S&P 500 composite saw a +0.2% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Insights - USCB Financial Holdings, Inc. reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and showing an increase from $0.35 per share a year ago, resulting in an earnings surprise of +7.14% [1] - The company posted revenues of $24.96 million for the quarter ended September 2025, which was 0.45% below the Zacks Consensus Estimate, but an increase from $21.55 million year-over-year [2] - The stock has underperformed the market, losing about 3.2% since the beginning of the year compared to the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $25.76 million, and for the current fiscal year, it is $1.68 on revenues of $98.09 million [7] - The estimate revisions trend for USCB Financial was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 20% of over 250 Zacks industries, suggesting that stocks in this sector are likely to outperform those in the bottom 50% [8] - Another company in the same industry, Amerant Bancorp Inc., is expected to report quarterly earnings of $0.55 per share, reflecting a year-over-year change of +103.7% [9]

Core Insights - USCB Financial Holdings, Inc. reported a net income of $8.9 million or $0.45 per fully diluted share for Q3 2025, an increase from $6.9 million or $0.35 per share in Q3 2024, marking the third consecutive quarter of record earnings per share [1][2]. Profitability - The annualized return on average assets for Q3 2025 was 1.27%, up from 1.11% in Q3 2024 [5]. - The annualized return on average stockholders' equity for Q3 2025 was 15.74%, compared to 13.38% in Q3 2024 [5]. - The efficiency ratio improved to 52.28% in Q3 2025 from 53.16% in Q3 2024 [5]. - The net interest margin increased to 3.14% in Q3 2025 from 3.03% in Q3 2024 [5]. - Net interest income before provision for credit losses rose to $21.3 million, a 17.5% increase from $18.1 million in Q3 2024 [5]. Balance Sheet - Total assets reached $2.8 billion as of September 30, 2025, an increase of $264 million or 10.5% from $2.5 billion a year earlier [5]. - Total loans held for investment were $2.1 billion, up $199.6 million or 10.3% from $1.9 billion in Q3 2024 [5]. - Total deposits increased to $2.5 billion, reflecting a rise of $329 million or 15.5% from $2.1 billion in Q3 2024 [5]. - Total stockholders' equity was $209.1 million, a decrease of $4.8 million or 2.3% from $213.9 million in Q3 2024 [5]. Capital - The Company issued $40 million in subordinated notes on August 14, 2025, primarily to repurchase 2 million shares of Class A common stock at an average price of $17.19 per share [5]. - As of September 30, 2025, total risk-based capital ratios for the Company and the Bank were 14.20% and 13.93%, respectively, exceeding regulatory requirements [5]. - Tangible book value per common share increased to $11.55, up $0.65 or 5.9% from $10.90 a year earlier [5]. Non-interest Income and Non-interest Expense - Non-interest income for Q3 2025 was $3.7 million, a 7.2% increase from $3.4 million in Q3 2024 [5]. - Non-interest expense rose to $13.0 million, an increase of $1.6 million or 13.9% compared to $11.5 million in Q3 2024 [5].

Financial Performance - USCB Financial Holdings reported a record fully diluted EPS of $0.45 for Q3 2025, up from $0.35 in Q3 2024, representing a 28.6% increase[1][2] - Net income for Q3 2025 was $8.9 million, compared to $6.9 million for the same period in 2024, reflecting a 28.9% year-over-year growth[1][2] - Basic net income per common share for Q3 2025 was $0.46, up from $0.35 in Q3 2024, reflecting a 31.4% increase[20] - Net income for Q3 2025 was $8,939,000, representing a 28.6% increase compared to $6,949,000 in Q3 2024[20] - Net income for Q3 2025 reached $8,939 million, an increase from $8,140 million in Q2 2025, representing a growth of 9.8%[31] Asset and Loan Growth - Total assets reached $2.8 billion as of September 30, 2025, an increase of $264 million or 10.5% from $2.5 billion a year earlier[5] - Total loans held for investment grew to $2.1 billion, up $199.6 million or 10.3% from $1.9 billion at the same time last year[5] - Total assets as of September 30, 2025, were $2,767,945,000, an increase from $2,503,954,000 as of September 30, 2024[22] - Loans held for investment reached $2,099,043 thousand, a rise of 11.7% compared to $1,878,230 thousand in the same quarter last year[25] Deposit Growth - Total deposits increased to $2.5 billion, reflecting a rise of $329 million or 15.5% from $2.1 billion in Q3 2024[5] - Total deposits reached $2,455,614,000 as of September 30, 2025, compared to $2,126,617,000 a year earlier, marking a 15.5% growth[22] - Total deposits increased to $2,457,067 thousand, up 18.3% from $2,077,523 thousand a year ago[25] Income and Efficiency - Total interest income for Q3 2025 was $37,720,000, an increase of 12.8% from $33,562,000 in Q3 2024[20] - Net interest income after provision for credit losses for Q3 2025 was $21,169,000, up 23.1% from $17,178,000 in Q3 2024[20] - Non-interest income for Q3 2025 was $3.7 million, a 7.2% increase from $3.4 million in Q3 2024[11] - The efficiency ratio improved to 52.28% in Q3 2025 from 53.16% in Q3 2024, indicating better operational efficiency[5] - Operating efficiency ratio improved to 52.22% in Q3 2025 from 51.77% in Q2 2025, showing enhanced operational efficiency[31] Return Ratios - Annualized return on average assets (ROAA) increased to 1.27% in Q3 2025 from 1.11% in Q3 2024[5] - Annualized return on average stockholders' equity (ROAE) rose to 15.74% in Q3 2025, compared to 13.38% in Q3 2024[5] - Return on average assets improved to 1.27% for the quarter, up from 1.11% in the same quarter last year[25] - Return on average equity increased to 15.74%, compared to 13.38% a year earlier, reflecting a significant enhancement in profitability[25] - Operating return on average assets for Q3 2025 was 1.27%, up from 1.22% in Q2 2025, indicating improved asset utilization[31] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.10 per share, payable on December 5, 2025, to shareholders of record on November 14, 2025[11] - Cash dividends declared increased to $0.10 per share in Q3 2025, compared to $0.05 per share in Q3 2024[20] Credit Quality - The allowance for credit losses stood at $24,964,000 as of September 30, 2025, slightly up from $23,067,000 a year earlier[22] - Non-performing loans totaled $1,310 thousand, with a non-performing loans to total loans ratio of 0.06%[25] - The allowance for credit losses to total loans ratio stood at 1.17%, consistent with the previous quarter's 1.18%[25] Operational Capacity - Full-time equivalent employees increased to 206, up from 198 a year ago, indicating growth in operational capacity[28] Other Financial Metrics - Tangible book value per common share was $11.55 at the end of Q3 2025, slightly up from $11.53 in Q2 2025[34] - Total stockholders' equity decreased to $209,095 million in Q3 2025 from $231,583 million in Q2 2025, a decline of 9.7%[34] - Tangible Common Equity/Tangible Assets ratio was 7.55% in Q3 2025, down from 8.52% in Q2 2025, reflecting a decrease in capital efficiency[34] - Average assets increased to $2,798,115 million in Q3 2025 from $2,677,198 million in Q2 2025, a growth of 4.5%[31]

Core Points - USCB Financial Holdings, Inc. declared a regular quarterly cash dividend of $0.10 per share of Class A common stock, payable on December 5, 2025, to shareholders of record as of November 14, 2025 [1] - Future dividend payments will be subject to quarterly review and approval by the Board of Directors [1] Company Overview - USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank, established in 2002 [2] - U.S. Century Bank is one of the largest community banks headquartered in Miami and in Florida [2] - The bank is rated 5-Stars by BauerFinancial, indicating a strong financial standing [2] - U.S. Century Bank offers a wide range of financial products and services and supports various community organizations [2]