USCB Financial Holdings, Inc. Reports Fourth Quarter 2021 Results and Announces Share Repurchase Program

Thursday, 27. January 2022 23:46

MIAMI, Jan. 27, 2022 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), reported net income of $5.7 million or $0.30 per diluted share for the three months ended December 31, 2021, compared with net income of $4.2 million or $0.67 and $0.14 per diluted share for Class A and Class B common stock, respectively, for the same period in 2020. Net income for the year ended December 31, 2021, was $21.1 million or $(6.72) per diluted common share compared with net income of $10.8 million or $1.50 and $0.30 per diluted share for Class A and Class B common stock, respectively, for the same period in 2020.

Operating net income per diluted share (non-GAAP) for the year ended December 31, 2021 was $1.81 compared to operating net income per diluted share (non-GAAP) for the same period in 2020 of $1.50 and $0.30 for Class A and Class B common stock, respectively. Operating net income per diluted share (non-GAAP) for the year ended December 31, 2021 excludes the $89.6 million one-time accounting impact of the exchange and redemption of the preferred shares. A reconciliation of non-GAAP measures to GAAP measures appears at the end of this press release.

On December 21, 2021, the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting common stock for Class A voting common stock at a ratio of 5 to 1. On the same day, a total of 6,121,052 shares of Class B common stock was exchanged for 1,224,212 shares of Class A common stock. As of December 31, 2021, the Company’s only class of shares issued and outstanding were Class A common stock.

Effective December 30, 2021, the Company became the parent bank holding company of U.S. Century Bank (the “Bank”). Each share of the Bank was exchanged for one share of the Company, making the Bank a wholly owned subsidiary of the Company. Shares of the Company continue to trade under ticker symbol “USCB” on the Nasdaq Global Market. Due to the reorganization, the Company is subject to periodic filings with the Securities Exchange Commission (“SEC”) instead of the Federal Deposit Insurance Corporation (“FDIC”). As of December 31, 2021, all the business of the Company is conducted by the Bank.

On January 24, 2022, the Board of Directors approved a share repurchase program of up to 750,000 shares of Class A common stock. Under the repurchase program, the Company may purchase shares of Class A common stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means. The repurchase program has no expiration date and may be modified, suspended, or terminated at any time. Repurchases under this program will be funded from the Company’s existing cash and cash equivalents or future cash flow.

“Over the course of 2021, we achieved many notable milestones thanks to the unwavering commitment and support from our employees, customers, and partners. Together, we were able to complete an IPO, simplify our capital structure, and form a bank holding company. We continue to grow and remain very optimistic about our future.” said Luis de la Aguilera, President and Chief Executive Officer. “The formation of the holding company provides more efficient access to capital while allowing flexibility for growth and acquisition strategies. We believe that forming a holding company places us in the best position to respond to evolving market conditions and enables us to take advantage of future opportunities.”  

Profitability

  • Annualized return on average assets for the quarter ended December 31, 2021 was 1.23% compared to 1.11% in the fourth quarter of 2020.

  • Annualized return on average stockholders’ equity for the quarter ended December 31, 2021 was 11.08% compared to 9.96% in the fourth quarter of 2020.

  • The efficiency ratio for the quarter ended December 31, 2021 decreased to 55.74% compared to 63.81% for the fourth quarter in 2020.

  • Net interest margin (NIM) increased to 3.19% for the quarter ended December 31, 2021 compared to 3.14% for the fourth quarter in 2020.

  • Net interest income was $14.1 million for the quarter ended December 31, 2021, an increase of $2.6 million or 22.4% compared to the fourth quarter in 2020. The increase was primarily driven by higher loan and investment income along with lower deposit costs.

Balance Sheet

  • Total assets were $1.9 billion at December 31, 2021, representing an increase of $352.2 million or 23.5% from the fourth quarter in 2020.

  • Total deposits were $1.6 billion at December 31, 2021, representing an increase of $317.0 million or 24.9%, from the fourth quarter in 2020.

  • Total shareholders’ equity was $203.9 million at December 31, 2021, representing an increase of $32.9 million or 19.2% from the fourth quarter in 2020.

  • Total loans were $1.2 billion at December 31, 2021, representing an increase of $151.6 million or 14.6% from the fourth quarter in 2020.

  • The Company purchased a portfolio of commercial real estate loans within the quarter with an aggregate principal balance of $36.0 million.

Asset Quality

  • The allowance for credit losses was $15.1 million at December 31, 2021 and 2020.

  • The allowance for credit losses represented 1.27% of total loans at December 31, 2021 compared to 1.45% at December 31, 2020.

  • Non-performing loans to total loans was 0.10% at December 31, 2021 compared to 0.15% at December 31, 2020.

Non-interest Income and Non-interest Expense

  • Non-interest income totaled $2.6 million for the three months ended December 31, 2021, an increase of $1.2 million or 81.9% compared to the same period in 2020. The increase was primarily driven by a $983 thousand gain on the sale of a building.

  • Non-interest expense was $9.3 million for the three months ended December 31, 2021 compared to $8.3 million for the same period in 2020.

Capital

  • The Company exceeded all regulatory capital requirements and remained significantly above “well-capitalized” guidelines. Total risk-based capital ratio was 14.92% at December 31, 2021 compared to 14.24% for the fourth quarter in 2020.

Conference Call and Webcast

USCB Financial Holdings, Inc. (the “Company”), will host a conference call on Friday, January 28, 2022, at 9:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended December 31, 2021. To access the conference call, dial (844) 221-2148 (domestically) or (929) 517-0937 (internationally) and use conference code 4543356.

Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About USCB Financial Holdings, Inc.

USCB Financial Holdings, Inc., is a bank holding company that operates primarily through its wholly owned subsidiary, U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the state. U.S. Century Bank is rated 5-star by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services. U.S. Century Bank has received awards and accolades from numerous organizations for its philanthropic support and leadership, including the Beacon Council, Greater Miami Chamber of Commerce, South Florida Hispanic Chamber of Commerce and others. For more information or to find a U.S. Century Bank banking center near you, please call (305) 715-5200 or visit www.uscentury.com.

Forward-Looking Statements

Statements included in this earning release that are not historical in nature 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. The words “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “continue,” and “intend,” as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on results of operations and financial condition from expected developments or events, or business and growth strategies, including anticipated internal growth.

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;
  • the COVID-19 pandemic and its impact on us, our employees, customers and third-party service providers, and the ultimate extent of the impacts of the pandemic and related government stimulus programs;
  • our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
  • the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
  • the efficiency and effectiveness of our internal control environment;
  • our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
  • legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the effects of forthcoming CECL implementation;
  • the effects of our lack of a diversified loan portfolio and concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate;
  • the concentration of ownership of our Class A common stock;
  • our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
  • inflation, interest rate, unemployment rate, market, and monetary fluctuations;
  • increased competition and its effect on pricing of our products and services as well as our margins;
  • the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
  • other risks described from time to time in the Bank or the Company’s filings with the FDIC or SEC.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this presentation are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports the Company filed or will file with the SEC and, for periods prior to the completion of the bank holding company reorganization, the Bank filed with the FDIC.

Non-GAAP Financial Measures

This earning release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earning release.

You should assume that all numbers are unaudited unless otherwise noted.

Contacts:

Investor Relations
InvestorRelations@uscentury.com

Media Relations
Martha Guerra-Kattou
(305) 715-5141
MGuerra@uscentury.com

 USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
 CONSOLIDATED STATEMENTS OF INCOME 
 (Dollars in thousands, except per share data) 
          
  Three Months Ended Twelve Months Ended 
  December 31, December 31, 
   2021  2020   2021   2020 
 Interest income:        
 Loans, including fees$12,786 $11,549  $48,730  $47,078 
 Investment securities 2,216  1,492   7,886   5,248 
 Interest-bearing deposits in financial institutions 29  46   106   307 
 Total interest income 15,031  13,087   56,722   52,633 
 Interest expense:        
 Interest-bearing deposits 14  30   59   158 
 Savings and money markets accounts 510  545   2,082   3,095 
 Time deposits 292  864   1,531   4,709 
 Federal Home Loan Bank advances 139  149   554   1,074 
 Total interest expense 955  1,588   4,226   9,036 
 Net interest income before provision for credit losses 14,076  11,499   52,496   43,597 
 Provision for credit losses -  -   (160)  3,250 
 Net interest income after provision for credit losses 14,076  11,499   52,656   40,347 
 Non-interest income:        
 Service fees 961  1,030   3,609   3,266 
 Gain on sale of securities available for sale, net 35  11   214   434 
 Gain (loss) on sale of loans held for sale, net 107  (1)  1,626   839 
 Gain on sale of other assets 983  -   983   - 
 Loan settlement -  -   2,500   - 
 Other non-interest income 558  414   1,766   1,558 
 Total non-interest income 2,644  1,454   10,698   6,097 
 Non-interest expense:        
 Salaries and employee benefits 5,634  4,435   21,438   19,204 
 Occupancy 1,267  1,402   5,257   5,656 
 Regulatory assessment and fees 93  171   783   691 
 Consulting and legal fees 539  274   1,454   1,045 
 Network and information technology services 268  380   1,466   1,536 
 Other operating 1,518  1,603   5,279   4,904 
 Total non-interest expense 9,319  8,265   35,677   33,036 
 Net income before income tax expense 7,401  4,688   27,677   13,408 
 Income tax expense 1,751  449   6,600   2,588 
 Net income 5,650  4,239   21,077   10,820 
 Preferred stock dividend -  782   2,077   3,127 
 Exchange and redemption of preferred shares -  -   89,585   - 
 Net income (loss) available to common stockholders$5,650 $3,457  $(70,585) $7,693 
 Allocation of net income (loss) per         
 common stock class: (1)        
 Class A$5,650 $2,629  $(70,585) $5,851 
 Class B$- $828  $-  $1,842 
 Per share information: (1)        
 Class A common stock (2)        
 Net income (loss) per share, basic$0.30 $0.68  $(6.72) $1.51 
 Net income (loss) per share, diluted$0.30 $0.67  $(6.72) $1.50 
 Class B common stock        
 Net income per share, basic$- $0.14  $-  $0.30 
 Net income per share, diluted$- $0.14  $-  $0.30 
 Weighted average shares outstanding:        
 Class A common stock (2)        
 Basic 18,913,914  3,887,512   10,507,530   3,887,480 
 Diluted 19,023,686  3,911,322   10,507,530   3,911,290 
 Class B common stock        
 Basic -  6,121,052   -   6,121,052 
 Diluted -  6,121,052   -   6,121,052 
          
 (1) The allocation of net income (loss) available to common stockholders was based on the weighted average shares outstanding per common share class to the total weighted average shares outstanding during each period. The income (loss) allocation is calculated using the weighted average shares outstanding of Class B common stock on a as-converted basis (20% per share equivalent to Class A common stock). For the three and twelve months ended December 31, 2021, there were no issued and outstanding Class B common stock due to the exchange of all Class B common stock into Class A common stock that occurred on December 21, 2021. 
 (2) For the three and twelve months ended December 31, 2020, the common stock outstanding, weighted average shares and net income per share for the Class A common stock were adjusted to reflect the 1 for 5 reverse stock split that occurred in June of 2021. 


USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
SELECTED FINANCIAL DATA 
(Dollars in thousands, except per share data) 
           
 As of and for the three months ended 
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Income Statement Data:          
Net interest income$14,076  $13,471  $12,474  $12,475  $11,499  
Provision for credit losses -   -   -   (160)  -  
Net interest income after provision for credit losses 14,076   13,471   12,474   12,635   11,499  
Service fees 961   856   903   889   1,030  
Gain (loss) on sale of securities available for sale, net 35   (70)  187   62   11  
Gain (loss) on sale of loans held for sale, net 107   532   23   964   (1) 
Gain on sale of other assets 983   -   -   -   -  
Loan settlement -   2,500   -   -   -  
Other income 558   399   403   406   414  
Total non-interest income 2,644   4,217   1,516   2,321   1,454  
Salaries and employee benefits 5,634   5,313   5,213   5,278   4,435  
Occupancy 1,267   1,192   1,411   1,387   1,402  
Regulatory assessment and fees 93   317   195   178   171  
Consulting and legal fees 539   357   373   185   274  
Network and information technology services 268   358   332   508   380  
Other operating 1,518   1,470   1,150   1,141   1,603  
Total non-interest expenses 9,319   9,007   8,674   8,677   8,265  
Net income before income tax expense 7,401   8,681   5,316   6,279   4,688  
Income tax expense 1,751   2,088   1,263   1,498   449  
Net income 5,650   6,593   4,053   4,781   4,239  
Preferred stock dividend -   542   754   781   782  
Exchange and redemption of preferred shares -   89,585   -   -   -  
Net income (loss) available to common stockholders$5,650  $(83,534) $3,299  $4,000  $3,457  
Allocation of net income (loss) per common stock class: (1)            
Class A$5,650  $(77,278) $2,509  $3,042  $2,629  
Class B$-  $(6,256) $790  $958  $828  
Per share information:          
Class A common stock (2)          
Net income (loss) per share, basic$0.30  $(5.11) $0.65  $0.78  $0.68  
Net income (loss) per share, diluted$0.30  $(5.11) $0.64  $0.78  $0.67  
Class B common stock          
Net income (loss) per share, basic$-  $(1.02) $0.13  $0.16  $0.14  
Net income (loss) per share, diluted$-  $(1.02) $0.13  $0.16  $0.14  
Balance Sheet Data (at period end):          
Cash and cash equivalents$46,228  $69,597  $47,117  $105,940  $47,734  
Securities available-for-sale$401,542  $328,171  $395,804  $341,344  $334,322  
Securities held-to-maturity$122,658  $99,866  $-  $-  $-  
Loans held for investment (3)$1,190,081  $1,176,412  $1,145,095  $1,103,981  $1,038,504  
Allowance for credit losses$(15,057) $(14,900) $(14,848) $(15,009) $(15,086) 
Total assets$1,853,939  $1,755,011  $1,667,005  $1,633,359  $1,501,742  
Non-interest-bearing deposits$605,425  $570,091  $555,993  $516,550  $442,467  
Interest-bearing deposits$984,954  $914,498  $882,783  $887,681  $830,935  
Federal Home Loan Bank advances and other borrowings$36,000  $36,000  $36,000  $36,000  $36,000  
Total liabilities$1,650,042  $1,553,093  $1,500,703  $1,462,934  $1,330,741  
Total stockholders' equity$203,897  $201,918  $166,302  $170,425  $171,001  
Capital ratios:          
Leverage ratio 9.55%  9.69%  7.91%  8.57%  8.61% 
Common equity tier 1 capital 13.70%  13.85%  9.24%  9.47%  9.71% 
Tier 1 risk-based capital 13.70%  13.85%  11.44%  12.54%  12.99% 
Total risk-based capital 14.92%  15.10%  12.69%  13.80%  14.24% 
           
  
(1) The allocation of net income (loss) available to common stockholders was based on the weighted average shares outstanding per common share class to the total weighted average shares outstanding during each period. The income (loss) allocation is calculated using the weighted average shares outstanding of Class B common stock on a as-converted basis (20% per share equivalent to Class A common stock). For the three months ended December 31, 2021, there were no issued and outstanding Class B common stock due to the exchange of all Class B common stock into Class A common stock that occurred on December 21, 2021. 
(2) The quarters ended June 30, 2021 and prior were all adjusted for the 1 for 5 reverse stock split. 
(3) Loan amounts include deferred fees/costs.          
           


           
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
AVERAGE BALANCES, RATIOS, AND OTHER 
(Dollars in thousands) 
           
 As of and for the three months ended 
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Average balance sheet data:          
Cash and cash equivalents$87,819  $116,622  $108,028  $86,157  $154,415  
Securities available-for-sale$374,589  $346,407  $382,990  $334,723  $251,294  
Securities held-to-maturity$114,108  $51,238  $-  $-  $-  
Loans held for investment (1)$1,158,755  $1,144,275  $1,088,492  $1,071,782  $1,036,249  
Total assets$1,828,037  $1,741,423  $1,660,060  $1,573,881  $1,522,735  
Interest-bearing deposits$958,241  $912,330  $896,271  $861,300  $854,206  
Non-interest-bearing deposits$603,735  $564,928  $535,894  $482,376  $437,221  
Total deposits$1,561,976  $1,477,258  $1,432,165  $1,343,676  $1,291,427  
Federal Home Loan Bank advances and other borrowings$36,000  $36,000  $36,000  $36,000  $37,522  
Total liabilities$1,625,675  $1,546,414  $1,493,129  $1,402,305  $1,353,424  
Total stockholders' equity$202,362  $195,009  $166,931  $171,576  $169,311  
Performance ratios:          
Return on average assets (2) 1.23%  1.50%  0.98%  1.23%  1.11% 
Return on average equity (2) 11.08%  13.41%  9.74%  11.30%  9.96% 
Net interest margin (2) 3.19%  3.19%  3.14%  3.35%  3.14% 
Non-interest income to average assets (2) 0.57%  0.96%  0.37%  0.60%  0.38% 
Efficiency ratio (3) 55.74%  50.92%  62.00%  58.64%  63.81% 
Loans by type (at period end): (4)            
Residential real estate$201,359  $201,124  $213,575  $231,554  $232,754  
Commercial real estate$704,988  $693,469  $673,944  $650,762  $606,425  
Commercial and industrial$146,592  $137,486  $155,440  $174,546  $157,330  
Foreign banks$59,491  $58,839  $62,042  $45,659  $38,999  
Consumer and other$79,229  $87,515  $43,979  $5,627  $5,507  
Asset quality data:          
Allowance for credit losses to total loans 1.27%  1.27%  1.30%  1.36%  1.45% 
Allowance for credit losses to non-performing loans 1265%  82778%  74240%  2214%  956% 
Non-accrual loans less non-accrual TDRs 1,190   -   -   228   303  
Non-accrual TDRs -   18   20   450   1,275  
Loans- over 90 days past due and accruing -   -   -   -   -  
Total non-performing loans (5) 1,190   18   20   678   1,578  
Non-performing loans to total loans 0.10%  0.00%  0.00%  0.06%  0.15% 
Non-performing assets to total assets 0.06%  0.00%  0.00%  0.04%  0.11% 
Net charge-offs (recoveries of) to average loans(2) -0.05%  -0.02%  0.06%  -0.03%  0.05% 
Net charge-offs (recovery of) credit losses (157)  (51)  160   (83)  121  
Interest rates and yields: (2)          
Loans 4.32%  4.29%  4.19%  4.43%  4.36% 
Investment securities 1.81%  1.86%  2.04%  2.19%  2.35% 
Total interest-earning assets 3.41%  3.43%  3.41%  3.69%  3.57% 
Deposits 0.21%  0.22%  0.26%  0.34%  0.44% 
Borrowings and repurchase agreements 1.51%  1.52%  1.52%  1.52%  1.55% 
Total interest-bearing liabilities 0.38%  0.40%  0.45%  0.57%  0.71% 
Other information:          
Full-time equivalent employees 187   184   183   186   179  
           
(1) Loan amounts include deferred fees/costs. 
(2) Annualized.          
(3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.   
(4) Loan amounts exclude deferred fees/costs. 
(5) The amounts for total non-performing loans and total non-performing assets are the same for the periods presented since there were no impaired investments or other real estate owned (OREO) recorded. 
                     
           


USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
NET INTEREST MARGIN  
(Dollars in thousands) 
             
 Three Months Ended December 31, 
  2021   2020  
 Average
Balance
 
Interest
 Yield/
Rate
(1)
 Average
Balance
 
Interest
 Yield/
Rate
(1)
 
Assets            
Interest-earning assets:            
Loans (2)$1,158,755 $12,786 4.32% $1,036,249 $11,549 4.36% 
Investment securities (3) 490,797  2,216 1.81%  254,070  1,492 2.35% 
Other interest earnings assets 80,170  29 0.14%  145,895  46 0.12% 
Total interest-earning assets 1,729,722  15,031 3.41%  1,436,214  13,087 3.57% 
Non-interest earning assets 98,315      86,521     
Total assets$1,828,037     $1,522,735     
Liabilities and stockholders' equity            
Interest-bearing liabilities:            
Interest-bearing demand deposits$56,558  14 0.10% $48,530  30 0.25% 
Saving and money market deposits 673,993  510 0.30%  541,824  545 0.40% 
Time deposits 227,690  292 0.51%  263,852  864 1.30% 
Total interest-bearing deposits 958,241  816 0.34%  854,206  1,439 0.67% 
Borrowings and repurchase agreements 36,000  139 1.51%  37,522  149 1.55% 
Total interest-bearing liabilities 994,241  955 0.38%  891,728  1,588 0.71% 
Non-interest bearing demand deposits 603,735      437,221     
Other non-interest-bearing liabilities 27,699      24,475     
Total liabilities 1,625,675      1,353,424     
Stockholders' equity 202,362      169,311     
Total liabilities and stockholders' equity$1,828,037     $1,522,735     
Net interest income  $14,076     $11,499   
Net interest spread (4)    3.03%     2.86% 
Net interest margin (5)    3.19%     3.14% 
             
(1) Annualized.            
(2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs. 
(3) At fair value except for securities held to maturity.           
(4) Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities. 
(5) Net interest margin is the ratio of net interest income to total interest-earning assets.       


           
USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
NON-GAAP FINANCIAL MEASURES 
(Dollars in thousands) 
           
 As of and for the three months ended 
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Pre-Tax Pre-Provision ("PTPP") Income:          
Net income$5,650  $6,593  $4,053  $4,781  $4,239  
Plus: Provision for income taxes 1,751   2,088   1,263   1,498   449  
Plus: Provision for (recovery of) credit losses -   -   -   (160)  -  
PTPP income$7,401  $8,681  $5,316  $6,119  $4,688  
           
PTPP Return on Average Assets:          
PTPP income$7,401  $8,681  $5,316  $6,119  $4,688  
Average assets$1,828,037  $1,741,423  $1,660,060  $1,573,881  $1,522,735  
PTPP return on average assets (1) 1.61%  1.98%  1.28%  1.58%  1.22% 
           
Operating Net Income:          
Net income$5,650  $6,593  $4,053  $4,781  $4,239  
Less: Net gains (losses) on sale of securities 35   (70)  187   62   11  
Less: Tax effect on sale of securities (9)  17   (46)  (15)  (3) 
Operating net income$5,624  $6,646  $3,912  $4,734  $4,231  
           
Operating PTPP Income:          
PTPP income$7,401  $8,681  $5,316  $6,119  $4,688  
Less: Net gains (losses) on sale of securities 35   (70)  187   62   11  
Operating PTPP Income$7,366  $8,751  $5,129  $6,057  $4,677  
           
Operating PTPP Return on Average Assets:          
Operating PTPP income$7,366  $8,751  $5,129  $6,057  $4,677  
Average assets$1,828,037  $1,741,423  $1,660,060  $1,573,881  $1,522,735  
Operating PTPP Return on average assets(1) 1.60%  1.99%  1.24%  1.56%  1.22% 
           
Operating Return on Average Asset:          
Operating net income$5,624  $6,646  $3,912  $4,734  $4,231  
Average assets$1,828,037  $1,741,423  $1,660,060  $1,573,881  $1,522,735  
Operating return on average assets (1) 1.22%  1.51%  0.95%  1.22%  1.11% 
           
(1) Annualized.          
           


USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
NON-GAAP FINANCIAL MEASURES 
(Dollars in thousands, except per share data) 
            
 As of and for the three months ended 
 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020  
Tangible Book Value per Common Share (at period-end):           
Total stockholders' equity (GAAP)$203,897 $201,918  $166,302 $170,425 $171,001 
Less: Intangible assets -  -   -  -  -  
Less: Preferred stock -  -   24,616  32,077  32,077  
Tangible stockholders' equity (non-GAAP)$203,897 $201,918  $141,686 $138,348 $138,924  
Total shares issued and outstanding (at period-end):           
Class A common shares 19,991,753  18,767,541   3,889,469  3,889,469  3,889,469  
Class B common shares -  1,224,212   1,224,212  1,224,212  1,224,212  
Total common shares outstanding 19,991,753  19,991,753   5,113,681  5,113,681  5,113,681  
Tangible book value per common share (non-GAAP)$10.20 $10.10  $27.71 $27.05 $27.17  
            
Operating Net Income Available to Common Stockholders:            
Net income (GAAP)$5,650 $6,593  $4,053 $4,781 $4,239  
Less: Preferred dividends -  542   754  781  782  
Less: Exchange and redemption of preferred shares -  89,585   -  -  -  
Net income (loss) available to common stockholders (GAAP) 5,650  (83,534)  3,299  4,000  3,457  
Add back: Exchange and redemption of preferred shares -  89,585   -  -  -  
Operating net income avail. to common stock (non-GAAP) (1)$5,650 $6,051  $3,299 $4,000 $3,457  
Allocation of operating net income per common stock class:           
Class A common stock$5,650 $5,598  $2,509 $3,042 $2,629  
Class B common stock$- $453  $790 $958 $828  
Weighted average shares outstanding:           
Class A common stock           
Basic 18,913,914  15,121,460   3,889,469  3,889,469  3,887,512  
Diluted 19,023,686  15,187,729   3,933,636  3,913,279  3,911,322  
Class B common stock           
Basic -  6,121,052   6,121,052  6,121,052  6,121,052  
Diluted -  6,121,052   6,121,052  6,121,052  6,121,052  
Diluted EPS:(1) (2) (3)           
Class A common stock           
Net income (loss) per diluted share (GAAP)$0.30 $(5.11) $0.64 $0.78 $0.67  
Add back: Exchange and redemption of preferred shares -  5.48   -  -  -  
Operating net income per diluted share (non-GAAP)$0.30 $0.37  $0.64 $0.78 $0.67  
Class B common stock           
Net income (loss) per diluted share (GAAP)$- $(1.02) $0.13 $0.16 $0.14  
Add back: Exchange and redemption of preferred shares -  1.09   -  -  -  
Operating net income per diluted share (non-GAAP)$- $0.07  $0.13 $0.16 $0.14  
            
     
(1) The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company.    
(2) For the quarter ended September 30, 2021, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive.  
(3) During the quarter ended December 31, 2021, the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting stock for Class A voting common stock at a ratio of 5 to 1. In calculating net income (loss) per diluted share for the prior quarters presented, the allocation of operating net income available to common stockholders was based on the weighted average shares outstanding per common share class to the total weighted average shares outstanding during each period. The operating net income allocation was calculated using the weighted average shares outstanding of Class B common stock on a as-converted basis.  


USCB FINANCIAL HOLDINGS, INC. (UNAUDITED) 
NON-GAAP FINANCIAL MEASURES 
(Dollars in thousands, except per share data) 
     
 Year Ended December 31, 
  2021   2020 
Operating Net Income Available to Common Stockholders:    
Net income (GAAP)$21,077  $10,820 
Less: Preferred dividends 2,077   3,127 
Less: Exchange and redemption of preferred shares 89,585   - 
Net income (loss) available to common stockholders (GAAP) (70,585)  7,693 
Add back: Exchange and redemption of preferred shares 89,585   - 
Operating net income avail. to common stock (non-GAAP) (1)$19,000  $7,693 
Allocation of operating net income per common stock class:    
Class A common stock$19,000  $5,851 
Class B common stock$-  $1,842 
Weighted average shares outstanding:    
Class A common stock    
Basic 10,507,530   3,887,480 
Diluted 10,567,833   3,911,290 
Class B common stock    
Basic -   6,121,052 
Diluted -   6,121,052 
Diluted EPS:(1) (2)    
Class A common stock    
Net income (loss) per diluted share (GAAP)$(6.72) $1.50 
Add back: Exchange and redemption of preferred shares 8.53   - 
Operating net income per diluted share (non-GAAP)$1.81  $1.50 
Class B common stock    
Net income per diluted share (GAAP)$-  $0.30 
Add back: Exchange and redemption of preferred shares -   - 
Operating net income per diluted share (non-GAAP)$-  $0.30 
     
(1) The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company. 
(2) During the year ended December 31, 2021, the Company entered into agreements with the Class B shareholders to exchange all outstanding Class B non-voting stock for Class A voting common stock at a ratio of 5 to 1. As such, there are no issued and outstanding shares of Class B common stock for the year ended 2021. 

 


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