USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS of $0.35 for Q3 2024; ROAA of 1.11% and ROAE of 13.38%
MIAMI, Oct. 31, 2024 (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 $0.35 per fully diluted share for the three months ended September 30, 2024, compared with net income of $3.8 million or $0.19 per fully diluted share for the same period in 2023.
"We are proud to report our second consecutive quarter of record fully diluted earnings per share, demonstrating the strength of our strategic initiatives and operational performance." said Luis de la Aguilera, Chairman, President, and CEO. "With a return on average assets of 1.11% and a NIM of 3.03%, we are effectively leveraging our assets to drive profitability. Additionally, our growth in non-interest income reflects our commitment to diversifying revenue streams and enhancing shareholder value. We remain focused on delivering strong performance and sustainable growth to our stakeholders." said de la Aguilera.
Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended September 30, 2024 compared to at or for the quarter ended September 30, 2023 and annualized where appropriate.
Profitability
Annualized return on average assets for the quarter ended September 30, 2024 was 1.11% compared to 0.67% for the third quarter of 2023.
Annualized return on average stockholders' equity for the quarter ended September 30, 2024 was 13.38% compared to 8.19% for the third quarter of 2023.
The efficiency ratio for the quarter ended September 30, 2024 was 53.16% compared to 64.64% for the third quarter of 2023.
Net interest margin for the quarter ended September 30, 2024 was 3.03% compared to 2.60% for the third quarter of 2023.
Net interest income before provision for credit losses was $18.1 million for the quarter ended September 30, 2024, an increase of $4.1 million or 29.1% compared to the third quarter of 2023.
Balance Sheet
Total assets were $2.5 billion at September 30, 2024, representing an increase of $259.4 million or 11.6% from $2.2 billion at September 30, 2023.
Total loans were $1.9 billion at September 30, 2024, representing an increase of $254.8 million or 15.2% from $1.7 billion at September 30, 2023.
Total deposits were $2.1 billion at September 30, 2024, representing an increase of $205.7 million or 10.7% from $1.9 billion at September 30, 2023.
Total stockholders' equity was $213.9 million at September 30, 2024, representing an increase of $31.0 million or 17.0% from $182.9 million at September 30, 2023. Total stockholders' equity included accumulated comprehensive loss of $38.0 million at September 30, 2024 compared to accumulated comprehensive loss of $51.2 million at September 30, 2023.
Asset Quality
The allowance for credit losses ("ACL") increased by $3.6 million to $23.1 million at September 30, 2024 from $19.5 million at September 30, 2023.
The ACL represented 1.19% of total loans at September 30, 2024 and 1.16% at September 30, 2023.
Provision for credit loss was $931 thousand for the quarter ended September 30, 2024, an increase of $278 thousand compared to the third quarter of 2023.
Non-performing loans to total loans was 0.14% at September 30, 2024 and 0.03% at September 30, 2023. Nonperforming loans totaled $2.7 million at September 30, 2024 and $479 thousand at September 30, 2023.
Non-interest Income and Non-interest Expense
Non-interest income was $3.4 million for the three months ended September 30, 2024, an increase of $1.3 million or 59.1% compared to $2.2 million for the same period in 2023.
Non-interest expense was $11.5 million for the three months ended September 30, 2024, an increase of $1.0 million or 9.5% compared to $10.5 million for the same period in 2023.
Capital
On October 28, 2024, the Company's Board of Directors declared a cash dividend of $0.05 per share of the Company's Class A common stock. The dividend will be paid on December 5, 2024 to shareholders of record at the close of business on November 15, 2024.
As of September 30, 2024, total risk-based capital ratios for the Company and the Bank were 13.22% and 13.14%, respectively.
Tangible book value per common share (a non-GAAP measure) was $10.90 at September 30, 2024, representing an increase of $0.66 or 25.6% annualized from $10.24 at June 30, 2024. At September 30, 2024, tangible book value per common share was negatively affected by $1.94 due to an accumulated comprehensive loss of $38.0 million. At June 30, 2024, tangible book value per common share was negatively affected by $2.28 due to an accumulated comprehensive loss of $44.7 million.
During the quarter, the Company repurchased 10,000 shares of Class A common stock at a weighted average cost per share of $12.03. The aggregate purchase price for these transactions was approximately $120 thousand, including transaction costs. As of September 30, 2024, 537,980 shares remained authorized for repurchase under the Company's share repurchase programs.
Conference Call and Webcast
The Company will host a conference call on Friday, November 1, 2024, at 11:00 a.m. Eastern Time to discuss the Company's unaudited financial results for the quarter ended September 30, 2024. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.
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 the bank holding company for 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 of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation's leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking center near you, please call (305) 715-5200 or visit www.uscentury.com.
Forward-Looking Statements
This earnings release 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," "expect," "aim," "plan," "estimate," "continue," and "intend,", the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, 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 our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring.
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 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 procedures and processes;
our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
deposit attrition and the level of our uninsured deposits;
legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the implementation of the Current Expected Credit Losses ("CECL") standard;
the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate;
the effects of climate change;
the concentration of ownership of our common stock;
fluctuations in the price of our 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, and market and monetary fluctuations;
impacts of international hostilities and geopolitical events;
increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin;
the loss of key employees;
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 in this earnings release and other filings we make with the Securities and Exchange Commission ("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 earnings release 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 statements are 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.
Non-GAAP Financial Measures
This earnings 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 operations and 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. 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 earnings release.
All numbers included in this press release are unaudited unless otherwise noted.
Contacts:
Investor
Media RelationsMartha Guerra-Kattou
USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2024
2023
2024
2023
Interest income:
Loans, including fees
$
29,819
$
22,523
$
84,479
$
63,081
Investment securities
2,754
2,833
8,634
7,501
Interest-bearing deposits in financial institutions
989
1,026
3,953
2,459
Total interest income
33,562
26,382
97,066
73,041
Interest expense:
Interest-bearing checking deposits
411
331
1,171
574
Savings and money market accounts
10,064
8,779
30,529
20,532
Time deposits
3,391
2,565
9,907
5,767
FHLB advances and other borrowings
1,587
685
4,881
1,976
Total interest expense
15,453
12,360
46,488
28,849
Net interest income before provision for credit losses
18,109
14,022
50,578
44,192
Provision for credit losses
931
653
2,127
892
Net interest income after provision for credit losses
17,178
13,369
48,451
43,300
Non-interest income:
Service fees
2,544
1,329
6,172
3,707
Gain (loss) on sale of securities available for sale, net
-
(955
)
14
(976
)
Gain on sale of loans held for sale, net
109
255
593
696
Other non-interest income
785
1,532
2,334
2,650
Total non-interest income
3,438
2,161
9,113
6,077
Non-interest expense:
Salaries and employee benefits
7,200
6,066
20,863
18,325
Occupancy
1,341
1,350
3,921
3,968
Regulatory assessments and fees
452
365
1,361
1,041
Consulting and legal fees
161
513
1,016
1,257
Network and information technology services
513
481
1,499
1,464
Other operating expense
1,787
1,686
5,528
5,034
Total non-interest expense
11,454
10,461
34,188
31,089
Net income before income tax expense
9,162
5,069
23,376
18,288
Income tax expense
2,213
1,250
5,606
4,464
Net income
$
6,949
$
3,819
$
17,770
$
13,824
Per share information:
Net income per common share, basic
$
0.35
$
0.20
$
0.90
$
0.70
Net income per common share, diluted
$
0.35
$
0.19
$
0.90
$
0.70
Cash dividends declared
$
0.05
$
-
$
0.15
$
-
Weighted average shares outstanding:
Common shares, basic
19,621,447
19,542,723
19,653,103
19,661,685
Common shares, diluted
19,825,211
19,611,897
19,761,242
19,729,181
USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Income statement data:
Net interest income
$
18,109
$
17,311
$
15,158
$
14,376
$
14,022
Provision for credit losses
931
786
410
1,475
653
Net interest income after provision for credit losses
17,178
16,525
14,748
12,901
13,369
Service fees
2,544
1,977
1,651
1,348
1,329
Gain (loss) on sale of securities available for sale, net
-
14
-
(883
)
(955
)
Gain on sale of loans held for sale, net
109
417
67
105
255
Other income
785
803
746
756
1,532
Total non-interest income
3,438
3,211
2,464
1,326
2,161
Salaries and employee benefits
7,200
7,353
6,310
6,104
6,066
Occupancy
1,341
1,266
1,314
1,262
1,350
Regulatory assessments and fees
452
476
433
412
365
Consulting and legal fees
161
263
592
642
513
Network and information technology services
513
479
507
552
481
Other operating expense
1,787
1,723
2,018
1,747
1,686
Total non-interest expense
11,454
11,560
11,174
10,719
10,461
Net income before income tax expense
9,162
8,176
6,038
3,508
5,069
Income tax expense
2,213
1,967
1,426
787
1,250
Net income
$
6,949
$
6,209
$
4,612
$
2,721
$
3,819
Per share information:
Net income per common share, basic
$
0.35
$
0.32
$
0.23
$
0.14
$
0.20
Net income per common share, diluted
$
0.35
$
0.31
$
0.23
$
0.14
$
0.19
Cash dividends declared
$
0.05
$
0.05
$
0.05
$
-
$
-
Balance sheet data (at period-end):
Cash and cash equivalents
$
38,486
$
77,261
$
126,546
$
41,062
$
33,435
Securities available-for-sale
$
259,527
