Regulatory Environment - The company operates in a highly regulated environment, subject to extensive regulation and supervision by federal and state agencies, which could adversely affect its operations and financial condition [230]. - The company is required to maintain a Common Equity Tier 1 (CET1) capital ratio of 7.0% or more, a Tier 1 capital ratio of 8.5% or more, and a total capital ratio of 10.5% or more under Basel III rules [238]. - The company currently meets the Basel III capital requirements but may face challenges in maintaining compliance in the future, which could impact growth initiatives and investor confidence [239]. - The company has dedicated significant resources to its anti-money laundering program due to increased regulatory scrutiny, especially in high-risk areas like South Florida [233]. - Regulatory changes, such as those from the Dodd-Frank Act, could impose additional compliance costs and operational restrictions on the company [232]. - The company may incur costs related to improving its internal control systems to comply with Section 404 of the Sarbanes-Oxley Act [228]. - The company faces risks of noncompliance with the Bank Secrecy Act, which could lead to significant penalties and reputational damage [233]. - The company is subject to periodic examinations by banking agencies, which could result in remedial actions that negatively impact its operations [241]. - The company must obtain regulatory approvals for many activities, and failure to do so could restrict its business operations [230]. - Heightened regulatory scrutiny following recent banking stresses could lead to increased compliance costs and operational risks for the company [236]. - The company is subject to numerous laws and regulations, including the Community Reinvestment Act, which could lead to sanctions if not complied with [243]. Financial Performance - Total assets increased to $2,581,216 thousand in 2024 from $2,339,093 thousand in 2023, representing a growth of 10.4% [456]. - Net income rose to $24,674 thousand in 2024, up 49% from $16,545 thousand in 2023 [459]. - Total interest income increased to $131,233 thousand in 2024, a 30% increase from $101,017 thousand in 2023 [459]. - Loans held for investment grew to $1,948,778 thousand in 2024, compared to $1,759,743 thousand in 2023, marking an increase of 10.7% [456]. - Total deposits reached $2,174,004 thousand in 2024, up 12.2% from $1,937,139 thousand in 2023 [456]. - Net interest income after provision for credit losses was $66,779 thousand in 2024, a 19% increase from $56,201 thousand in 2023 [459]. - Non-interest income increased to $12,740 thousand in 2024, up 72% from $7,403 thousand in 2023 [459]. - The provision for credit losses was $3,157 thousand in 2024, compared to $2,367 thousand in 2023, reflecting a 33.4% increase [459]. - Total stockholders' equity increased to $215,388 thousand in 2024 from $191,968 thousand in 2023, a rise of 12.1% [456]. - Net income per share, basic, increased to $1.25 in 2024 from $0.84 in 2023, representing a growth of 49% [459]. - Net cash provided by operating activities rose to $34,090 thousand in 2024, up from $22,546 thousand in 2023, an increase of 51.2% [471]. - The net increase in deposits for 2024 was $236,865 thousand, compared to $107,858 thousand in 2023, reflecting a growth of 119.5% [471]. - Cash and cash equivalents at the end of 2024 were $77,035 thousand, up from $41,062 thousand at the end of 2023, marking an increase of 87.6% [471]. - The net cash used in investing activities decreased to $211,861 thousand in 2024 from $273,002 thousand in 2023, a reduction of 22.4% [471]. - The company reported interest paid of $60,544 thousand in 2024, up from $41,306 thousand in 2023, an increase of 46.5% [471]. - The net cash provided by financing activities was $213,744 thousand in 2024, compared to $237,350 thousand in 2023, a decrease of 10.0% [471]. Loan Portfolio and Credit Quality - The Company had a concentration of risk with loans outstanding to the top ten lending relationships totaling $236.2 million, representing 12.0% of net loans outstanding as of December 31, 2024 [509]. - The Company segments its loan portfolio based on collateral codes to establish reserves, utilizing regression models based on peer data for loans of similar risk characteristics [502]. - The Company’s loan portfolio is concentrated largely in real estate and commercial loans in South Florida, which could be adversely impacted by negative conditions in the local economy [507]. - The Company applies qualitative adjustments to expected credit losses to account for risk factors not captured in quantitative analysis [503]. - The allowance for credit losses (ACL) was $24.1 million as of December 31, 2024, compared to $21.1 million in 2023, indicating a rise of 14.2% [573]. - The provision for credit losses for 2024 was $2,960 thousand, compared to $2,503 thousand in 2023, indicating a 18.2% increase year-over-year [578]. - Total loans outstanding increased from $1,778,644 thousand as of December 31, 2023, to $1,965,218 thousand as of December 31, 2024, reflecting a growth of 10.5% [590]. - The total balance of collectively evaluated loans rose from $20,811 thousand in 2023 to $23,352 thousand in 2024, marking a 12.9% increase [579]. - The company reported a total of $2,280 thousand in substandard loans as of December 31, 2024, compared to $9,481 thousand in 2023, indicating a decrease of 76.0% [590]. - The total charge-offs for 2024 were $19 thousand, compared to $57 thousand in 2023, showing a decrease of 66.7% [578]. - The company’s recoveries increased from $85 thousand in 2023 to $45 thousand in 2024, reflecting a decrease of 47.1% [578]. - As of December 31, 2024, total accruing loans amounted to $1,962,511 thousand, with non-accruing loans totaling $2,707 thousand [592]. - Non-accrual loans with related allowance as of December 31, 2024, were $2,393 thousand, compared to $468 thousand in 2023, reflecting a significant increase [596]. - The company had two collateral-dependent loans as of December 31, 2024, with a recorded investment of $1,990 thousand [599]. Securities and Investments - The total amortized cost of available-for-sale investment securities as of December 31, 2024, was $310.9 million, with unrealized losses amounting to $51.2 million, resulting in a fair value of $260.2 million [551]. - For the year ended December 31, 2024, the proceeds from sales and calls of available-for-sale securities were $34.8 million, with net realized gains of $14 thousand [556]. - The allowance for credit losses on securities held-to-maturity was reported as $(6) thousand, indicating a minimal impact on the overall financial position [551]. - The total unrealized losses retained in accumulated other comprehensive income (AOCI) for securities transferred from available-for-sale to held-to-maturity was $9.3 million as of December 31, 2024 [555]. - The company reported a total of $164.7 million in held-to-maturity securities, net of allowance for credit losses, as of December 31, 2024 [551]. - The company monitors credit quality of held-to-maturity securities quarterly, with all such securities rated investment grade as of December 31, 2024 [564]. - The unrealized losses on investment securities were attributed to changes in interest rates rather than credit quality, reflecting management's assessment [567]. - The company had $66.1 million in securities pledged to the State of Florida under the public funds program as of December 31, 2024, down from $86.9 million in 2023 [569]. Accounting and Reporting - The company has elected to use an extended transition period for complying with new accounting standards, which may affect the comparability of its financial statements with other public companies [256]. - The adoption of ASU 2016-13 on January 1, 2023, resulted in an increase to the allowance for credit losses (ACL) on loan receivables of $1.1 million and a reserve for unfunded commitments of $259 thousand, leading to a cumulative adjustment of $1.0 million in accumulated deficit [545]. - As of January 1, 2023, 84% or $1.3 billion of loan receivables were evaluated under the Discounted Cash Flow (DCF) method, while 16% or $251 million were evaluated under the Remaining Life method [543]. - The company implemented ASU 2022-02 concurrently with ASU 2016-13, enhancing disclosures related to troubled debt restructurings [546]. - The impact of adopting CECL included an increase in the allowance for credit losses and adjustments to the deferred tax asset, reflecting changes in credit loss measurement methodologies [545]. Corporate Governance and Ownership - Significant investors, including Patriot Financial Partners and Priam Capital Fund, own approximately 22.4% and 22.5% of the company's Class A common stock, respectively, influencing corporate governance and decision-making [257]. - The company's ability to pay dividends is subject to restrictions and depends on the profitability of its bank subsidiary, which is regulated by the FDIC [248]. - The market price and trading volume of the company's Class A common stock may be volatile, influenced by various external factors unrelated to its performance [249]. - The company's governing documents include provisions that may have an anti-takeover effect, potentially delaying or preventing acquisitions [260].

Financial Data and Key Metrics - Diluted EPS increased from $0 14 in Q4 2023 to $0 34 in Q4 2024, more than doubling year-over-year [3] - Net interest margin expanded due to the company's focus on reducing deposit costs, contributing to solid profitability [3] Business Line Performance - The company achieved strong gains in assets, deposits, diversified quality loan production, and profitability, driven by disciplined execution of its commercial banking initiatives [3] Market Performance - The company benefited from Florida's strong, resilient, and growing economy, which supported its performance [3] Strategic Direction and Industry Competition - The company's business plan focuses on commercial banking initiatives aimed at profitably expanding existing client relationships and growing new ones [3] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's record year, outperforming internal budgets and delivering impressive results for shareholders [3] - The company's performance underscores its disciplined execution and focus on profitability [3] Other Important Information - The company's Q4 2024 results were reviewed by the President and CEO, CFO, and Chief Credit Officer, with highlights commencing on Slide 3 [2] Q&A Session - No Q&A session details were provided in the content

EARNINGS PRESENTATION FOURTH QUARTER 2024 NASDAQ: USCB 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," "exp ...

Core Insights - USCB Financial Holdings, Inc. reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.37 per share, but showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of -8.11% [1] - The company posted revenues of $22.99 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.77%, compared to year-ago revenues of $15.7 million [2] - USCB Financial shares have increased by approximately 2.9% since the beginning of the year, while the S&P 500 has gained 3.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $22.41 million, and for the current fiscal year, it is $1.53 on revenues of $93.99 million [7] - The estimate revisions trend for USCB Financial is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southeast industry, to which USCB Financial belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Renasant (RNST), is expected to report quarterly earnings of $0.61 per share, reflecting a year-over-year change of -19.7%, with revenues projected at $165.37 million, up 13% from the previous year [9][10]

MIAMI, Jan. 23, 2025 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $6.9 million or $0.34 per fully diluted share for the three months ended December 31, 2024, compared with net income of $2.7 million or $0.14 per fully diluted share for the same period in 2023. “The results in Q4 2024, highlight a record year for USCB. The team outperformed our internal budget and delivered impressive results f ...

Financial Performance - USCB Financial Holdings reported a fully diluted EPS of $0.34 for Q4 2024, up from $0.14 in Q4 2023, representing a 142.9% increase[1][2] - Net income for Q4 2024 was $6.9 million, compared to $2.7 million in Q4 2023, marking a significant year-over-year growth[1][2] - Non-interest income surged to $3.6 million, a 173.5% increase from $1.3 million in Q4 2023[12] - Net income for Q4 2024 was $6,904 thousand, compared to $2,721 thousand in Q4 2023, representing a 153.5% growth[21] - Basic net income per common share for Q4 2024 was $0.35, up from $0.14 in Q4 2023, reflecting a 150% increase[21] - Net income for the three months ended December 31, 2024, was $6,904 million, compared to $2,721 million for the same period last year, representing a year-over-year increase of 154%[35] - Operating revenue for the quarter was $22,985 million, an increase from $16,585 million in the same quarter last year, reflecting a growth of 38.5%[35] Asset and Loan Growth - Total assets reached $2.6 billion at December 31, 2024, an increase of $242.1 million or 10.4% from $2.3 billion a year earlier[6] - Total loans held for investment grew to $2.0 billion, reflecting a $192.0 million or 10.8% increase from $1.8 billion at the end of 2023[6] - Total assets as of December 31, 2024, were $2,581,216 thousand, an increase from $2,339,093 thousand as of December 31, 2023, representing a growth of 10.4%[24] - Loans held for investment increased to $1,972,848 thousand as of December 31, 2024, up from $1,780,827 thousand a year earlier, indicating a growth of 10.8%[24] - Total deposits increased to $2.2 billion, up $236.9 million or 12.2% from $1.9 billion at December 31, 2023[6] - Total deposits rose to $2,174,004 thousand as of December 31, 2024, compared to $1,937,139 thousand as of December 31, 2023, marking a 12.2% increase[24] Efficiency and Cost Management - The efficiency ratio improved to 55.92% in Q4 2024, down from 68.27% in Q4 2023, indicating better cost management[6] - The operating efficiency ratio improved to 55.92% for the quarter ended December 31, 2024, compared to 64.63% in the same quarter last year[35] Dividends and Shareholder Returns - The board approved a quarterly cash dividend of $0.10 per share, doubling the previous dividend, to be paid on March 5, 2025[12] - Cash dividends declared for 2024 were $0.20 per share, compared to no dividends declared in 2023[21] Credit Quality and Allowance for Losses - The allowance for credit losses increased to $24.1 million, representing 1.22% of total loans, compared to 1.18% a year prior[12] - Provision for credit losses increased to $1,030 million for the quarter ended December 31, 2024, up from $410 million in the same quarter last year[35] - The allowance for credit losses to total loans was 1.22%, up from 1.18% a year ago, indicating a conservative approach to credit risk[28] - Non-performing loans totaled $2,707 thousand, with a non-performing loans to total loans ratio of 0.14%[28] Capital and Equity - Total stockholders' equity reached $215,388 million at the end of December 2024, compared to $191,968 million a year earlier, representing a growth of 12.1%[38] - The leverage ratio improved to 9.53% as of December 31, 2024, up from 9.28% a year prior, indicating enhanced capital strength[24] - Tangible book value per common share was $10.81 at the end of December 2024, up from $9.81 a year earlier, indicating a growth of 10.2%[38] - Tangible Common Equity/Tangible Assets ratio was 8.34% at the end of December 2024, down from 8.21% a year ago[38] Interest Income and Margin - Total interest income for Q4 2024 was $34,167 thousand, up 22.3% from $27,976 thousand in Q4 2023[21] - Net interest income after provision for credit losses increased to $18,328 thousand in Q4 2024, a 42.5% rise from $12,901 thousand in Q4 2023[21] - Net interest margin improved to 3.16% for the three months ended December 31, 2024, compared to 2.65% for the same period in 2023[31] Employment - The company employed 199 full-time equivalent employees, a slight increase from 196 employees a year ago[28]

MIAMI, Jan. 21, 2025 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank, announced today that its Board of Directors declared a regular quarterly cash dividend of $0.10 per share of Class A common stock, which represents an increase of $0.05, or 100.0%, per share compared with the previous quarterly dividend of $0.05 per share. The common stock dividend is payable on March 5, 2025, to shareholders of record as of the close of business ...

MIAMI, Jan. 03, 2025 (GLOBE NEWSWIRE) -- USCB FINANCIAL HOLDINGS, INC. (the "Company") (NASDAQ:USCB) will report financial results for the quarter ended December 31, 2024 after the market closes on Thursday, January 23, 2025. A conference call to discuss quarterly results will also be held with Chairman, President, and CEO, Luis de la Aguilera, Chief Financial Officer, Robert Anderson, and Chief Credit Officer, William Turner, details which are provided below. Live Conference Call and Audio Webcast Date: Fr ...

Financial Performance - The company reported net income of $6.9 million or $0.35 per diluted share for the three months ended September 30, 2024, compared to $3.8 million or $0.19 per diluted share for the same period in 2023[83]. - Net income for the three months ended September 30, 2024, was $6,949 thousand, an increase of $3,130 thousand or 82% compared to $3,819 thousand for the same period in 2023[91]. - Net income for Q3 2024 reached $6,949 million, an increase from $6,209 million in Q2 2024 and $4,612 million in Q3 2023[132]. - Operating revenue totaled $21,547 million, compared to $20,508 million in Q2 2024 and $17,622 million in Q3 2023, reflecting a strong growth trajectory[132]. - The annualized return on average assets for the quarter ended September 30, 2024, was 1.11% compared to 0.67% for the same quarter in 2023[83]. - The annualized return on average stockholders' equity for the quarter ended September 30, 2024, was 13.38% compared to 8.19% for the same quarter in 2023[83]. - Operating diluted net income per common share rose to $0.35, compared to $0.31 in Q2 2024 and $0.23 in Q3 2023, reflecting improved profitability[134]. Asset and Loan Growth - Total assets were $2.5 billion at September 30, 2024, representing an increase of $259.4 million or 11.6% from September 30, 2023[83]. - Total loans were $1.9 billion at September 30, 2024, representing an increase of $254.8 million or 15.2% from September 30, 2023[83]. - Total loans increased to $1,931,362 thousand as of September 30, 2024, from $1,780,827 thousand at December 31, 2023, marking an increase of 8.5%[89]. - Total loans, net of deferred fees/costs, increased by $150.5 million, or 11.3% annualized to $1.93 billion as of September 30, 2024, compared to December 31, 2023[105]. - The commercial real estate lending segment represented approximately 56.8% of the total gross loan portfolio as of September 30, 2024[105]. - As of September 30, 2024, approximately 56% of the loans have adjustable/variable rates, while 44% have fixed rates[105]. Deposit Growth - Total deposits were $2.1 billion at September 30, 2024, representing an increase of $205.7 million or 10.7% from September 30, 2023[83]. - Total deposits grew to $2,126,617 thousand as of September 30, 2024, up from $1,937,139 thousand at December 31, 2023, indicating a rise of 9.8%[89]. - Customer deposits totaled $2,077,523 thousand as of September 30, 2024, with an average rate paid of 2.66%[117]. - The average account size of the deposit portfolio was approximately $104,000 as of September 30, 2024[116]. Capital Ratios and Efficiency - As of September 30, 2024, the total risk-based capital ratios for the company and the bank were 13.22% and 13.14%, respectively[83]. - The Bank's total risk-based capital as of September 30, 2024, was $257,212 million, with a ratio of 13.14%, exceeding the minimum capital requirement of $156,587 million (8.00%) by $100,625 million[128]. - Tier 1 risk-based capital stood at $233,606 million with a ratio of 11.93%, surpassing the minimum requirement of $117,440 million (6.00%) by $116,166 million[128]. - The leverage ratio as of September 30, 2024, was 9.28%, well above the minimum requirement of 4.00%[128]. - The efficiency ratio improved to 53.16% for the three months ended September 30, 2024, down from 64.64% for the same period in 2023, showing enhanced operational efficiency[91]. - The operating efficiency ratio improved to 53.16%, down from 56.37% in Q2 2024 and 63.41% in Q3 2023, indicating better cost management[132]. Non-Interest Income and Expenses - Non-interest income increased to $3,438 thousand for the three months ended September 30, 2024, up from $2,161 thousand for the same period in 2023, a growth of 59%[91]. - Non-interest income for Q3 2024 increased by $1.3 million or 59.1% to $3.4 million, primarily due to growth in SWAP loan fees[98]. - Non-interest expense for Q3 2024 increased by $1.0 million or 9.5% to $11.5 million, primarily due to higher salaries and employee benefits[100]. Credit Quality and Provisions - Provision for credit losses for Q3 2024 was $931 thousand, up from $653 thousand in Q3 2023, driven by growth in the loan portfolio[97]. - The allowance for credit losses to total loans ratio was 1.19% as of September 30, 2024, compared to 1.18% as of December 31, 2023[111]. - Non-performing loans totaled $2.725 million as of September 30, 2024, compared to $468 thousand as of December 31, 2023[111]. - The provision for credit losses for the three months ended September 30, 2024, was $831 thousand, compared to a recovery of $673 thousand for the same period in 2023[114]. Legal Matters - The Company faced litigation initiated on July 13, 2023, by three former shareholders, seeking damages exceeding $750,000 plus attorney's fees[137]. - On December 27, 2023, the Court dismissed the litigation with prejudice, ruling in favor of the Defendants[137]. - An appeal was filed by the Plaintiffs on May 1, 2024, challenging the Court's dismissal and claiming errors in the ruling[137]. - The Company believes the appeal lacks merit and intends to vigorously defend against it[137]. - Management assesses that the likelihood of the litigation impacting consolidated results is remote, but acknowledges potential adverse effects from unfavorable outcomes[137]. - The Company intends to defend itself vigorously against any pending or future claims and litigation[137].

USCB Financial Holdings, Inc. (NASDAQ:USCB) Q3 2024 Earnings Conference Call November 1, 2024 8:30 AM ET Company Participants Luis de la Aguilera - Chairman, President & CEO Rob Anderson - CFO Bill Turner - CCO Conference Call Participants Woody Lay - KBW Michael Rose - Raymond James Stephen Scouten - Piper Sandler Operator Good day, and welcome to the Third Quarter 2024 USCB Financial Holdings Inc. Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's ...