UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number: 001-41196 USCB Financial Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of Florid ...

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents USCB Financial Holdings, Inc.'s unaudited consolidated financial statements for Q1 2023, detailing financial position, operations, and cash flows, including the adoption of the CECL standard - The Company adopted the Current Expected Credit Loss (CECL) methodology (ASU 2016-13) on January 1, 2023, which replaced the previous incurred loss model, resulting in a one-time cumulative adjustment that decreased retained earnings by **$1.3 million**[27](index=27&type=chunk)[37](index=37&type=chunk) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2.16 billion** driven by a **$71.6 million** rise in net loans, while deposits remained stable and FHLB advances significantly increased to **$120.0 million** Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,163,821** | **$2,085,834** | **+$77,987** | | Total cash and cash equivalents | $63,251 | $54,168 | +$9,083 | | Investment securities (AFS & HTM) | $415,837 | $418,839 | -$3,002 | | Loans held for investment, net | $1,561,507 | $1,489,851 | +$71,656 | | **Total Liabilities** | **$1,979,963** | **$1,903,406** | **+$76,557** | | Total deposits | $1,830,462 | $1,829,281 | +$1,181 | | Federal Home Loan Bank advances | $120,000 | $46,000 | +$74,000 | | **Total Stockholders' Equity** | **$183,858** | **$182,428** | **+$1,430** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Net income increased **19.7%** to **$5.8 million** in Q1 2023, driven by an **11.3%** rise in net interest income to **$16.0 million**, with a **$201 thousand** provision for credit losses Q1 2023 vs. Q1 2022 Performance (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Total interest income | $22,379 | $15,342 | +45.9% | | Total interest expense | $6,382 | $963 | +562.7% | | **Net interest income** | **$15,997** | **$14,379** | **+11.3%** | | Provision for credit losses | $201 | $0 | N/A | | Total non-interest income | $2,070 | $1,945 | +6.4% | | Total non-interest expense | $10,176 | $9,612 | +5.9% | | **Net income** | **$5,809** | **$4,854** | **+19.7%** | | Net income per share, diluted | $0.29 | $0.24 | +20.8% | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income reached **$8.5 million** in Q1 2023, a significant improvement from a **($12.1 million)** loss in Q1 2022, primarily due to **$2.7 million** in unrealized gains on investment securities Comprehensive Income (Loss) (in thousands) | Component | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net income | $5,809 | $4,854 | | Other comprehensive income (loss), net of tax | $2,686 | ($16,942) | | **Total comprehensive income (loss)** | **$8,495** | **($12,088)** | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to **$183.9 million** driven by net income and other comprehensive income, partially offset by a **$1.3 million** CECL adjustment and **$5.9 million** in share repurchases - During Q1 2023, the Company repurchased **500,000** shares of Class A common stock for approximately **$5.9 million**[16](index=16&type=chunk)[130](index=130&type=chunk) - The adoption of the new credit loss standard (ASC 326) resulted in a cumulative effect adjustment that reduced the opening accumulated deficit by **$1.3 million**[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$9.1 million** in Q1 2023, with **$9.0 million** from operations, **$69.2 million** used in investing, and **$69.3 million** provided by financing, primarily FHLB advances Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,001 | $5,603 | | Net cash used in investing activities | ($69,232) | ($80,735) | | Net cash provided by financing activities | $69,314 | $123,017 | | **Net increase in cash and cash equivalents** | **$9,083** | **$47,885** | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial statement figures, including CECL adoption, investment and loan portfolio composition, income taxes, off-balance sheet arrangements, and share repurchase activities - The company's loan portfolio is segmented for CECL analysis, with **84%** (**$1.3 billion**) evaluated under a Discounted Cash Flow method and **16%** (**$251.0 million**) under a Remaining Life (WARM) method[33](index=33&type=chunk) - As of March 31, 2023, the company had pledged **$24.3 million** in securities to the Federal Reserve's Bank Term Funding Program (BTFP) but had no borrowings under the program[62](index=62&type=chunk) - During Q1 2023, the company repurchased **500,000** shares at a weighted average price of **$11.74** per share, with **250,000** shares remaining authorized for repurchase as of March 31, 2023[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial performance, highlighting increased net interest income and net income, driven by loan growth and stable net interest margin, alongside analysis of financial condition, liquidity, and capital adequacy, including CECL impacts [Overview](index=32&type=section&id=MD%26A-Overview) The company reported strong Q1 2023 results with net income of **$5.8 million** and **$0.29** diluted EPS, driven by an **11.3%** increase in net interest income and **25.6%** loan growth, alongside **500,000** share repurchases Q1 2023 Key Performance Indicators | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income | $5.8 million | $4.9 million | | Diluted EPS | $0.29 | $0.24 | | Net Interest Income | $16.0 million | $14.4 million | | Net Interest Margin (NIM) | 3.22% | 3.22% | | Total Loans | $1.6 billion | $1.3 billion | | Annualized ROA | 1.11% | 1.03% | | Annualized ROE | 12.85% | 9.75% | [Results of Operations](index=34&type=section&id=MD%26A-Results%20of%20Operations) Net interest income grew **11.3%** to **$16.0 million** with a stable **3.22%** net interest margin, while a **$201 thousand** provision for credit losses was recorded, and non-interest expenses increased **5.9%** - Net interest income increased by **$1.6 million** (**11.3%**) YoY, primarily due to a larger loan portfolio and higher loan yields, while the Net Interest Margin (NIM) remained flat at **3.22%**[169](index=169&type=chunk)[170](index=170&type=chunk) - A provision for credit loss of **$201 thousand** was recorded in Q1 2023, mainly attributable to loan growth, compared to no provision in Q1 2022[173](index=173&type=chunk) - Non-interest expense increased by **$564 thousand** (**5.9%**) YoY, primarily driven by higher salaries and employee benefits from new hires and increased compensation[176](index=176&type=chunk) [Analysis of Financial Condition](index=37&type=section&id=MD%26A-Analysis%20of%20Financial%20Condition) Total assets increased to **$2.2 billion**, with loans growing **4.8%** to **$1.6 billion** and commercial real estate dominating the portfolio, while asset quality remained strong, deposits stable, and FHLB borrowings increased to **$120 million** - Total loans increased by **$73.1 million** (**4.8%**) in Q1 2023, with commercial real estate loans representing the largest portion of the portfolio at **62.5%**[190](index=190&type=chunk)[191](index=191&type=chunk) - Non-performing assets were minimal at **$486 thousand**, representing **0.03%** of total loans as of March 31, 2023[202](index=202&type=chunk) - Total estimated uninsured deposits, adjusted for collateralized public deposits, were **$1.0 billion**, representing **56%** of total deposits at March 31, 2023[213](index=213&type=chunk)[214](index=214&type=chunk) [Liquidity and Capital Adequacy](index=45&type=section&id=MD%26A-Liquidity%20and%20Capital%20Adequacy) The company maintains robust liquidity through diverse funding sources and was "well capitalized" as of March 31, 2023, with a **13.12%** total risk-based capital ratio and **9.30%** Tier 1 leverage ratio, exceeding regulatory minimums - The company has a comprehensive Contingency Funding Plan and utilizes various sources for liquidity, including core deposits, FHLB advances, and access to the Bank Term Funding Program (BTFP)[239](index=239&type=chunk)[242](index=242&type=chunk) Bank Capital Ratios as of March 31, 2023 | Ratio | Actual | Minimum Requirement | Well Capitalized Minimum | | :--- | :--- | :--- | :--- | | Total risk-based capital | 13.12% | 8.00% | 10.00% | | Tier 1 risk-based capital | 11.96% | 6.00% | 8.00% | | Common equity tier 1 capital | 11.96% | 4.50% | 6.50% | | Leverage ratio | 9.30% | 4.00% | 5.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, USCB Financial Holdings, Inc. is exempt from providing quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[257](index=257&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2023, management concluded that the Company's disclosure controls and procedures were effective[258](index=258&type=chunk) - There were no material changes to the Company's internal control over financial reporting during the first quarter of 2023[259](index=259&type=chunk) Part II [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, though it may encounter claims in the ordinary course of business - The company reports that it is not currently subject to any material legal proceedings[262](index=262&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new and updated risk factors as of March 31, 2023, primarily related to banking industry turmoil, including potential deposit outflows, increased FDIC premiums, and liquidity risks - Financial challenges at other banking institutions, such as the failures of Silicon Valley Bank and Signature Bank in March 2023, could lead to diminished depositor confidence and cause disruptive deposit outflows[264](index=264&type=chunk) - The company's FDIC deposit insurance premiums may increase due to a planned special assessment on banks to recover losses from protecting uninsured deposits at failed institutions[266](index=266&type=chunk) - The company identifies insufficient liquidity as a key risk, which could impair its ability to fund operations, satisfy depositor withdrawals, and meet other obligations, potentially jeopardizing its financial condition[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase activity for Q1 2023, where **500,000** shares were repurchased, leaving **250,000** shares available Share Repurchases for Q1 2023 | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Remaining in Program | | :--- | :--- | :--- | :--- | | January 2023 | 0 | N/A | 750,000 | | February 2023 | 250,000 | $12.04 | 500,000 | | March 2023 | 250,000 | $11.43 | 250,000 | | **Total Q1 2023** | **500,000** | **$11.74** | **250,000** | [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including organizational documents, material contracts, CEO/CFO certifications, and Interactive Data Files (XBRL) - The report includes standard exhibits such as CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and financial statements formatted in Inline XBRL (Exhibit 101)[273](index=273&type=chunk)

EARNINGS PRESENTATION FORWARD-LOOKING STATEMENTS 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 ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number: 001-41196 USCB Financial Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Financial Performance - Net income was $44 million, or $022 per diluted share[10] - Non-GAAP Operating net income was $59 million, or $029 per diluted share[10] - Net Interest Income (NII) was $169 million, compared to $141 million in Q4 2021[5] - Return on Average Assets (ROAA) was 086%, and Return on Average Equity (ROAE) was 991%[5] - Non-GAAP Operating ROAA was 114% and Non-GAAP Operating ROAE was 1323%[5] - Efficiency ratio was 5981%, while the Non-GAAP Operating efficiency ratio was 5346%[5] Growth and Loan Portfolio - Average loans, excluding PPP loans, increased by $3478 million, or 314%, compared to Q4 2021[12] - Average deposits increased by $2419 million, or 155%, compared to Q4 2021[6] - Total loans at quarter end were $15073 million[46] Asset Quality and Capital - ACL coverage ratio was 116%[9] - Tangible Book Value per Share was $912, up $025 from the prior quarter[27] - No shares were repurchased during the quarter, but a repurchase program is in place for 750000 shares of common stock[9, 111]

Financial Performance - Net income for the three months ended September 30, 2022, was $5.6 million, a decrease from $6.6 million for the same period in 2021[141] - Net income increased to $15.7 million for the nine months ended September 30, 2022, compared to $15.4 million for the same period in 2021[156] - Operating net income available to common stockholders for Q3 2022 was $5,558 million, an increase of 4.9% from $5,295 million in Q2 2022[258] - The company reported a net income of $5,558 million for Q3 2022, compared to a net loss of $83,534 million in Q3 2021, marking a significant recovery[258] Interest Income and Margin - Net interest income increased by $3.3 million or 24.5% to $16.8 million compared to $13.5 million for the quarter ended September 30, 2021[144] - Net interest income before the provision for credit losses was $16.8 million for the three months ended September 30, 2022, an increase of $3.3 million or 24.5% from $13.5 million for the same period in 2021[167] - Net interest margin improved to 3.47% from 3.19% for the third quarter of 2021[144] - Net interest margin increased to 3.47% for the quarter ended September 30, 2022, from 3.19% for the same period in 2021[168] - The net interest spread increased to 3.23% for the three months ended September 30, 2022, from 3.03% for the same period in 2021[162] Assets and Loans - Total assets reached $2.0 billion, an increase of $183.5 million or 9.9% compared to December 31, 2021[144] - Total loans grew to $1.4 billion, an increase of $241.4 million or 20.3% compared to December 31, 2021[144] - Total loans increased by $241.4 million or 20.3% to $1,431.5 million as of September 30, 2022, compared to $1,191.7 million as of December 31, 2021[198] - The average balance of loans increased to $1,398.8 million for the three months ended September 30, 2022, compared to $1,144.3 million for the same period in 2021[162] Deposits - Total deposits increased by $206.3 million or 13.0% to $1.8 billion from $1.6 billion at December 31, 2021[144] - Customer deposits totaled $1.763 billion as of September 30, 2022, with an average rate paid of 0.34%, up from $1.477 billion and 0.22% in Q3 2021[222] - Estimated uninsured deposits increased to $1.1 billion as of September 30, 2022, from $897.8 million at December 31, 2021[222] Credit Quality - The allowance for credit losses to total loans ratio decreased to 1.16% at September 30, 2022, from 1.27% at September 30, 2021[144] - Non-performing loans to total loans remained at 0.00% at both September 30, 2022, and September 30, 2021[144] - Total non-performing loans were $0 as of September 30, 2022, down from $1.19 million as of December 31, 2021[211] - The provision for credit loss was $1.6 million for the nine months ended September 30, 2022, compared to a net recovery of $160 thousand for the same period in 2021[175] Capital Ratios - The total risk-based capital ratio for the Company was 13.65% as of September 30, 2022[151] - The Tier 1 risk-based capital for USCB Financial Holdings, Inc. was $194,036 thousand, with a ratio of 12.56%, above the minimum requirement of 6.00%[251] - The common equity tier 1 capital for USCB Financial Holdings, Inc. was $194,036 thousand, with a ratio of 12.56%, exceeding the minimum requirement of 4.50%[251] - The leverage ratio for USCB Financial Holdings, Inc. was 9.48%, significantly above the minimum requirement of 4.00%[251] Non-Interest Income and Expenses - Non-interest income for the three months ended September 30, 2022, decreased $2.4 million or 57.7% compared to the same period in 2021, primarily due to a non-recurring $2.5 million default interest recovery[178] - Non-interest income for the nine months ended September 30, 2022 decreased by $2.7 million or 33.6% compared to the same period in 2021[179] - Non-interest expense for the nine months ended September 30, 2022 increased by $2.9 million or 11.1% compared to the same period in 2021, primarily due to higher salaries and employee benefits[182] Liquidity and Risk Management - The company maintained adequate liquidity resources to fund loans and meet cash needs, with no expected compromise in liquidity resources at this time[250] - The company has established a comprehensive liquidity risk management process integrated into its risk management framework[248] - Management regularly monitors liquidity risk factors, including funding mismatches and market constraints[245] Market and Economic Factors - The impact of inflation on the company's operations is significant, as nearly all assets and liabilities are monetary in nature, affecting interest rates more than general inflation levels[253] - The company does not expect significant changes in the composition of the loan portfolio or its focus on commercial real estate lending in the foreseeable future[199] Stockholder Information - Tangible book value per common share was $8.87 as of September 30, 2022, down from $10.10 at September 30, 2021[151] - Total stockholders' equity as of September 30, 2022, was $177,417 million, down from $203,897 million a year prior, indicating a decline of 13.0%[258] - The total number of Class A common shares issued and outstanding remained stable at 20,000,753 as of September 30, 2022, unchanged from the previous quarter[258] - The company completed its initial public offering of Class A common stock on July 27, 2021, issuing 4,600,000 shares, which contributed to the increase in total shares outstanding[259] Future Outlook - The company has not provided specific guidance for future performance but continues to focus on maintaining operational efficiency and exploring market expansion opportunities[263] - The estimated net interest margin (NIM) is expected to remain stable in year one and increase in year two under static rate scenarios[242]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number: 001-41196 USCB Financial Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number: 001-41196 USCB Financial Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number: 001-41196 USCB Financial Holdings, Inc. (Exact name of registrant as specified in its charter) Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Securities registered pursuant to Section ...