USCB Financial Holdings, Inc. Reports Diluted EPS of $0.14 for Q4 2023

Published

MIAMI, Jan. 25, 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 $2.7 million or $0.14 per diluted share for the three months ended December 31, 2023, compared to net income of $4.4 million or $0.22 per diluted share, for the same period in 2022.

“I am pleased to announce the results of a robust quarter at U.S. Century Bank, achieving loan production of $186 million with $150 million in loan fundings having a weighted average coupon of 8% on new loans,” said Luis de la Aguilera, Chairman, President, and CEO.

“Despite facing one of the most aggressive Federal Reserve tightening periods in history, we've observed a steady improvement in our operating environment. Our Net Interest Margin (NIM) improved 5 bps in comparison to the previous quarter. Additionally, our accumulated comprehensive loss also showed improvement in the fourth quarter decreasing by $7.0 million to $44.3 million, which has increased our stockholders equity and tangible book value. As part of our commitment to address NIM compression, we executed a $10 million loss trade transaction selling lower-yielding securities and reinvesting the funds in higher-yielding investments. Acknowledging the industry-wide impact of an inverted yield curve on earnings, our focus in 2024 is geared towards continued higher-yield loan production, deposit pricing discipline, and leveraging our proven business lines as lead deposit aggregators,” said de la Aguilera.

Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended December 31, 2023 compared to at or for the quarter ended December 31, 2022 and annualized where appropriate.

Profitability

  • Annualized return on average assets for the quarter ended December 31, 2023 was 0.48% compared to 0.86% for the fourth quarter of 2022. Operating pre-tax pre-provision profit (PTPP) return on average assets (non-GAAP financial measure) for the quarter ended December 31, 2023 was 1.03% compared to 1.69% for the fourth quarter of 2022.
  • Annualized return on average stockholders’ equity for the quarter ended December 31, 2023 was 5.88% compared to 9.91% for the fourth quarter of 2022.
  • The efficiency ratio for the quarter ended December 31, 2023 was 68.27% compared to 59.81% for the fourth quarter of 2022. Operating efficiency ratio (non-GAAP financial measure) for the quarter ended December 31, 2023 was 64.63% compared to 53.46% for the fourth quarter of 2022.
  • Net interest margin for the quarter ended December 31, 2023 was 2.65% compared to 3.45% for the fourth quarter of 2022.
  • Net interest income before provision for credit losses was $14.4 million for the quarter ended December 31, 2023, a decrease of $2.5 million or 14.8% compared to the fourth quarter of 2022.

Balance Sheet

  • Total assets were $2.3 billion at December 31, 2023, representing an increase of $253.3 million or 12.1% from December 31, 2022.
  • Total loans were $1.8 billion at December 31, 2023, representing an increase of $273.5 million or 18.1% from December 31, 2022.
  • Total deposits were $1.9 billion at December 31, 2023, representing an increase of $107.9 million or 5.9% from December 31, 2022.
  • Total stockholders’ equity was $192.0 million at December 31, 2023, representing an increase of $9.5 million or 5.2% from December 31, 2022. Total stockholders’ equity includes accumulated comprehensive loss of $44.3 million at December 31, 2023 compared to accumulated comprehensive loss of $44.8 million at December 31, 2022.

Asset Quality

  • Allowance for credit losses (“ACL”) was calculated under the Current Expected Credit Losses (“CECL”) standard methodology for all periods in 2023 and the incurred loss methodology for all periods in 2022.
  • The ACL increased by $3.6 million to $21.1 million at December 31, 2023 from $17.5 million at December 31, 2022.
  • The ACL represented 1.18% of total loans at December 31, 2023 and 1.16% at December 31, 2022.
  • Non-performing loans to total loans was 0.03% at December 31, 2023 compared to 0.00% at December 31, 2022.

Non-interest Income and Non-interest Expense

  • Non-interest income was $1.3 million for the three months ended December 31, 2023, an increase of $1.4 million compared to negative $0.1 million for the same period in 2022.
  • Non-interest expense was $10.7 million for the three months ended December 31, 2023, an increase of $705 thousand or 7.0% compared to $10.0 million for the same period in 2022.

Capital

  • During the fourth quarter, the Company repurchased 92,317 shares of the Company’s common stock at a weighted average price per share of $10.45. The aggregate purchase price for the repurchase was approximately $968 thousand, including transaction costs. The repurchase was made through open market transaction pursuant to the Company’s publicly announced stock repurchase program. As of December 31, 2023, 80,080 shares remained authorized for repurchase under the program.
  • During 2023, the Company repurchased 669,920 shares of the Company’s common stock at a weighted average price per share of $11.28. The aggregate purchase price for repurchases was approximately $7.6 million, including transaction costs. The repurchases were made through open market transactions pursuant to the Company’s publicly announced stock repurchase program.
  • As of December 31, 2023, total risk-based capital ratios for the Company and the Bank were 12.78% and 12.65%, respectively.
  • Tangible book value per common share (non-GAAP financial measure) at December 31, 2023 was $9.81, representing an increase of $0.69 from December 31, 2022. Tangible book value per common share at December 31, 2023 was negatively affected by $2.26 due to an accumulated comprehensive loss of $44.3 million. At December 31, 2022, tangible book value per common share of $9.12 was negatively affected by $2.24 due to $44.8 million in accumulated comprehensive loss.  

Conference Call and Webcast

The Company will host a conference call on Friday, January 26, 2024, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended December 31, 2023. 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 at 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,” 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 results of operations and financial condition from expected 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 the 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, 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 net 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 cybersecurity-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 has 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 financial 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 RelationsInvestorRelations@uscentury.com 

Media RelationsMartha Guerra-Kattou MGuerra@uscentury.com 

USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
            
 Three Months Ended December 31, Twelve Months Ended December 31,
 2023  2022  2023  2022 
Interest income:           
Loans, including fees$24,803  $17,836  $87,884  $60,825 
Investment securities 2,511   2,306   10,012   9,346 
Interest-bearing deposits in financial institutions 662   455   3,121   929 
Total interest income 27,976   20,597   101,017   71,100 
Interest expense:           
Interest-bearing checking 327   34   901   86 
Savings and money market accounts 9,126   2,866   29,658   5,173 
Time deposits 2,733   616   8,500   1,509 
FHLB advances and other borrowings 1,414   215   3,390   671 
Total interest expense 13,600   3,731   42,449   7,439 
Net interest income before provision for credit losses 14,376   16,866   58,568   63,661 
Provision for credit losses 1,475   880   2,367   2,495 
Net interest income after provision for credit losses 12,901   15,986   56,201   61,166 
Non-interest income:           
Service fees 1,348   1,093   5,055   4,010 
Gain (loss) on sale of securities available for sale, net (883)  (1,989)  (1,859)  (2,529)
Gain on sale of loans held for sale, net 105   205   801   891 
Loan settlement -   -   -   161 
Other non-interest income 756   568   3,406   2,695 
Total non-interest income 1,326   (123)  7,403   5,228 
Non-interest expense:           
Salaries and employee benefits 6,104   6,080   24,429   23,943 
Occupancy 1,262   1,256   5,230   5,058 
Regulatory assessments and fees 412   222   1,453   930 
Consulting and legal fees 642   371   1,899   1,890 
Network and information technology services 552   483   2,016   1,806 
Other operating expense 1,747   1,602   6,781   5,682 
Total non-interest expense 10,719   10,014   41,808   39,309 
Net income before income tax expense 3,508   5,849   21,796   27,085 
Income tax expense 787   1,415   5,251   6,944 
Net income$2,721  $4,434  $16,545  $20,141 
Per share information:           
Net income per common share, basic$0.14  $0.22  $0.84  $1.01 
Net income per common share, diluted$0.14  $0.22  $0.84  $1.00 
Weighted average shares outstanding:           
Common shares, basic 19,503,043   20,000,753   19,621,698   19,999,323 
Common shares, diluted 19,573,350   20,172,438   19,687,634   20,176,838 
            
 

USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
               
 As of or For the Three Months Ended
 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Income statement data:              
Net interest income$14,376  $14,022  $14,173  $15,997  $16,866 
Provision for credit losses 1,475   653   38   201   880 
Net interest income after provision for credit losses 12,901   13,369   14,135   15,796   15,986 
Service fees 1,348   1,329   1,173   1,205   1,093 
Gain (loss) on sale of securities available for sale, net (883)  (955)  -   (21)  (1,989)
Gain on sale of loans held for sale, net 105   255   94   347   205 
Other income 756   1,532   579   539   568 
Total non-interest income 1,326   2,161   1,846   2,070   (123)
Salaries and employee benefits 6,104   6,066   5,882   6,377   6,080 
Occupancy 1,262   1,350   1,319   1,299   1,256 
Regulatory assessments and fees 412   365   452   224   222 
Consulting and legal fees 642   513   386   358   371 
Network and information technology services 552   481   505   478   483 
Other operating expense 1,747   1,686   1,908   1,440   1,602 
Total non-interest expense 10,719   10,461   10,452   10,176   10,014 
Net income before income tax expense 3,508   5,069   5,529   7,690   5,849 
Income tax expense 787   1,250   1,333   1,881   1,415 
Net income$2,721  $3,819  $4,196  $5,809  $4,434 
Per share information:              
Net income per common share, basic$0.14  $0.20  $0.21  $0.29  $0.22 
Net income per common share, diluted$0.14  $0.19  $0.21  $0.29  $0.22 
Balance sheet data (at period-end):              
Cash and cash equivalents$41,062  $33,435  $87,280  $63,251  $54,168 
Securities available-for-sale$229,329  $218,609  $218,442  $229,409  $230,140 
Securities held-to-maturity$174,974  $197,311  $220,956  $186,428  $188,699 
Total securities$404,303  $415,920  $439,398  $415,837  $418,839 
Loans held for investment(1)$1,780,827  $1,676,520  $1,595,959  $1,580,394  $1,507,338 
Allowance for credit losses$(21,084) $(19,493) $(18,815) $(18,887) $(17,487)
Total assets$2,339,093  $2,244,602  $2,225,914  $2,163,821  $2,085,834 
Non-interest-bearing deposits$552,762  $573,546  $572,360  $633,606  $629,776 
Interest-bearing deposits$1,384,377  $1,347,376  $1,348,941  $1,196,856  $1,199,505 
Total deposits$1,937,139  $1,920,922  $1,921,301  $1,830,462  $1,829,281 
FHLB advances and other borrowings$183,000  $102,000  $87,000  $120,000  $46,000 
Total liabilities$2,147,125  $2,061,718  $2,042,229  $1,979,963  $1,903,406 
Total stockholders' equity$191,968  $182,884  $183,685  $183,858  $182,428 
Capital ratios:(2)              
Leverage ratio 9.28%  9.26%  9.32%  9.36%  9.61%
Common equity tier 1 capital 11.62%  11.97%  12.27%  12.04%  12.53%
Tier 1 risk-based capital 11.62%  11.97%  12.27%  12.04%  12.53%
Total risk-based capital 12.78%  13.10%  13.42%  13.20%  13.65%
               
(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are provided for information purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements.
 

USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
               
 As of or For the Three Months Ended
 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Average balance sheet data:              
Cash and cash equivalents$57,069  $90,742  $94,313  $50,822  $61,892 
Securities available-for-sale$215,649  $222,134  $224,913  $230,336  $242,144 
Securities held-to-maturity$181,151  $218,694  $192,628  $187,826  $184,459 
Total securities$396,800  $440,828  $417,541  $418,162  $426,603 
Loans held for investment(1)$1,698,611  $1,610,864  $1,569,266  $1,547,393  $1,456,780 
Total assets$2,268,811  $2,250,258  $2,183,542  $2,120,218  $2,051,867 
Interest-bearing deposits$1,336,470  $1,353,516  $1,270,657  $1,179,878  $1,150,049 
Non-interest-bearing deposits$577,133  $587,917  $601,778  $664,369  $653,820 
Total deposits$1,913,603  $1,941,433  $1,872,435  $1,844,247  $1,803,869 
FHLB advances and other borrowings$139,000  $85,326  $93,075  $61,600  $37,500 
Total liabilities$2,085,182  $2,065,357  $1,999,304  $1,936,847  $1,874,311 
Total stockholders' equity$183,629  $184,901  $184,238  $183,371  $177,556 
Performance ratios:              
Return on average assets(2) 0.48%  0.67%  0.77%  1.11%  0.86%
Return on average equity(2) 5.88%  8.19%  9.13%  12.85%  9.91%
Net interest margin(2) 2.65%  2.60%  2.73%  3.22%  3.45%
Non-interest income (loss) to average assets(2) 0.23%  0.38%  0.34%  0.40%  (0.02)%
Efficiency ratio(3) 68.27%  64.64%  65.25%  56.32%  59.81%
Loans by type (at period end):(4)              
Residential real estate$204,419  $188,880  $183,093  $184,427  $185,636 
Commercial real estate$1,047,593  $1,005,280  $989,401  $987,757  $970,410 
Commercial and industrial$219,757  $212,975  $169,401  $160,947  $126,984 
Foreign banks$114,945  $94,640  $85,409  $97,405  $93,769 
Consumer and other$191,930  $173,096  $167,845  $149,410  $130,429 
Asset quality data:              
Allowance for credit losses to total loans 1.18%  1.16%  1.18%  1.20%  1.16%
Allowance for credit losses to non-performing loans 4,505%  4,070%  3,871%  3,886%  -%
Total non-performing loans(5)$468  $479  $486  $486  $- 
Non-performing loans to total loans 0.03%  0.03%  0.03%  0.03%  -%
Non-performing assets to total assets(5) 0.02%  0.02%  0.02%  0.02%  -%
Net charge-offs (recoveries of) to average loans(2) (0.00)%  (0.00)%  0.01%  (0.01)%  (0.00)%
Net charge-offs (recovery) of credit losses$(3) $(5) $29  $(49) $(2)
Interest rates and yields:(2)              
Loans 5.79%  5.55%  5.33%  5.17%  4.86%
Investment securities 2.46%  2.52%  2.26%  2.20%  2.13%
Total interest-earning assets 5.16%  4.89%  4.68%  4.51%  4.21%
Deposits 2.53%  2.39%  1.99%  1.29%  0.77%
FHLB advances and other borrowings 4.04%  3.19%  3.42%  3.27%  2.27%
Total interest-bearing liabilities 3.66%  3.41%  2.97%  2.08%  1.25%
Other information:              
Full-time equivalent employees 196   194   198   196   191 
               
(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 and percentages for total non-performing loans and total non-performing assets are the same at the dates presented since there were no impaired investments or other real estate owned (OREO) recorded.

USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
                
 Three Months Ended December 31,
 2023  2022 
 AverageBalance Interest Yield/Rate(1) AverageBalance Interest Yield/Rate(1)
Assets               
Interest-earning assets:               
Loans(2)$1,698,611 $24,803 5.79% $1,456,780 $17,836 4.86%
Investment securities(3) 404,850  2,511 2.46%  429,020  2,306 2.13%
Other interest-earnings assets 49,583  662 5.30%  53,717  455 3.36%
Total interest-earning assets 2,153,044  27,976 5.16%  1,939,517  20,597 4.21%
Non-interest-earning assets 115,767       112,350     
Total assets$2,268,811      $2,051,867     
Liabilities and stockholders' equity               
Interest-bearing liabilities:               
Interest-bearing checking$49,675  327 2.61% $61,976  34 0.22%
Saving and money market deposits 1,004,805  9,126 3.60%  871,269  2,866 1.31%
Time deposits 281,990  2,733 3.85%  216,804  616 1.13%
Total interest-bearing deposits 1,336,470  12,186 3.62%  1,150,049  3,516 1.21%
FHLB advances and other borrowings 139,000  1,414 4.04%  37,500  215 2.27%
Total interest-bearing liabilities 1,475,470  13,600 3.66%  1,187,549  3,731 1.25%
Non-interest-bearing demand deposits 577,133       653,820     
Other non-interest-bearing liabilities 32,579       32,942     
Total liabilities 2,085,182       1,874,311     
Stockholders' equity 183,629       177,556     
Total liabilities and stockholders' equity$2,268,811      $2,051,867     
Net interest income   $14,376      $16,866  
Net interest spread(4)      1.50%       2.96%
Net interest margin(5)      2.65%       3.45%
                
(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. This amount includes FHLB stock.
(4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid 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.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
               
 As of or For the Three Months Ended
 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Pre-tax pre-provision ("PTPP") income:(1)              
Net income$2,721  $3,819  $4,196  $5,809  $4,434 
Plus: Provision for income taxes 787   1,250   1,333   1,881   1,415 
Plus: Provision for credit losses 1,475   653   38   201   880 
PTPP income$4,983  $5,722  $5,567  $7,891  $6,729 
               
PTPP return on average assets:(1)              
PTPP income$4,983  $5,722  $5,567  $7,891  $6,729 
Average assets$2,268,811  $2,250,258  $2,183,542  $2,120,218  $2,051,867 
PTPP return on average assets(2) 0.87%  1.01%  1.02%  1.51%  1.30%
               
Operating net income:(1)              
Net income$2,721  $3,819  $4,196  $5,809  $4,434 
Less: Net gains (losses) on sale of securities (883)  (955)  -   (21)  (1,989)
Less: Tax effect on sale of securities 224   242   -   5   504 
Operating net income$3,380  $4,532  $4,196  $5,825  $5,919 
               
Operating PTPP income:(1)              
PTPP income$4,983  $5,722  $5,567  $7,891  $6,729 
Less: Net gains (losses) on sale of securities (883)  (955)  -   (21)  (1,989)
Operating PTPP income$5,866  $6,677  $5,567  $7,912  $8,718 
               
Operating PTPP return on average assets:(1)              
Operating PTPP income$5,866  $6,677  $5,567  $7,912  $8,718 
Average assets$2,268,811  $2,250,258  $2,183,542  $2,120,218  $2,051,867 
Operating PTPP return on average assets(2) 1.03%  1.18%  1.02%  1.51%  1.69%
               
Operating return on average assets:(1)              
Operating net income$3,380  $4,532  $4,196  $5,825  $5,919 
Average assets$2,268,811  $2,250,258  $2,183,542  $2,120,218  $2,051,867 
Operating return on average assets(2) 0.59%  0.80%  0.77%  1.11%  1.14%
               
Operating return on average equity:(1)              
Operating net income$3,380  $4,532  $4,196  $5,825  $5,919 
Average equity$183,629  $184,901  $184,238  $183,371  $177,556 
Operating return on average equity(2) 7.30%  9.72%  9.13%  12.88%  13.23%
               
Operating Revenue:(1)              
Net interest income$14,376  $14,022  $14,173  $15,997  $16,866 
Non-interest income 1,326   2,161   1,846   2,070   (123)
Less: Net gains (losses) on sale of securities (883)  (955)  -   (21)  (1,989)
Operating revenue$16,585  $17,138  $16,019  $18,088  $18,732 
               
Operating Efficiency Ratio:(1)              
Total non-interest expense$10,719  $10,461  $10,452  $10,176  $10,014 
Operating revenue$16,585  $17,138  $16,019  $18,088  $18,732 
Operating efficiency ratio 64.63%  61.04%  65.25%  56.26%  53.46%
               
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Annualized.

USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
               
 As of or For the Three Months Ended
 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Tangible book value per common share (at period-end):(1)              
Total stockholders' equity$191,968  $182,884  $183,685  $183,858  $182,428 
Less: Intangible assets(2) -   -   -   -   - 
Tangible stockholders' equity(2)$191,968  $182,884  $183,685  $183,858  $182,428 
Total shares issued and outstanding (at period-end):              
Total common shares issued and outstanding 19,575,435   19,542,290   19,544,777   19,622,380   20,000,753 
Tangible book value per common share(2) (3)$9.81  $9.36  $9.40  $9.37  $9.12 
               
Operating diluted net income per common share:(1)              
Operating net income$3,380  $4,532  $4,196  $5,825  $5,919 
Total weighted average diluted shares of common stock 19,573,350   19,611,897   19,639,682   19,940,606   20,172,438 
Operating diluted net income per common share:$0.17  $0.23  $0.21  $0.29  $0.29 
               
Tangible Common Equity/Tangible Assets(1)              
Tangible stockholders' equity$191,968  $182,884  $183,685  $183,858  $182,428 
Tangible total assets(2)$2,339,093  $2,244,602  $2,225,914  $2,163,821  $2,085,834 
Tangible Common Equity/Tangible Assets(2) 8.21%  8.15%  8.25%  8.50%  8.75%
               
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Since the Company has no intangible assets, tangible stockholders' equity, tangible book value per share and tangible total assets are the same amounts as stockholders' equity, book value per share and total assets calculated under GAAP.
(3) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.

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Source: U.S. Century Bank

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USCB