USCB Financial (US:USCB)2025-11-07 17:09Financial 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]