Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q3 2023 Earnings Presentation
23 slides from Uscb Financial's earnings presentation, Oct 26, 2023
Slide 1: Earnings Presentation Third Quarter 2023
Exhibit 99.2 EARNINGS PRESENTATION THIRD QUARTER 2023 NASDAQ: USCB USCB FINANCIAL HOLDINGS
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation 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-l
Slide 3: Q3 2023 Highlights
Q3 2023 HIGHLIGHTS GROWTH Average deposits increased by $178.5 million or 10.1% compared to the third quarter 2022. Average loans increased $212.1 million or 15.2% compared to the third quarter 2022. Liquidity sources at September 30, 2023, totaled $742 million in on-balance sheet and off-balance sh
Slide 4: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans (1) In millions $735.0 $1,677.0 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 2023 2023 2023 Deposits In millions $782 $1,921 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 2023 2023 2023 Total stockholders’ equity In millions $86 $183 2016 2017 2
Slide 5: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Balance Sheet (EOP) Q3 2023 Q2 2023 Q3 2022 Total Securities $415,920 $439,398 $427,436 Total Loans (1) $1,676,520 $1,595,959 $1,431,513 Total Assets $2,244,602 $2,225,914 $2,037,453 Total Deposits $1,920,922 $1,921,301 $1,796,642 Total Equity (
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS Q3 2023 Q2 2023 Q3 2022 CAPITAL/CREDIT Tangible Common Equity/Tangible Assets (1) 8.15% 8.25% 8.71% Total Risk-Based Capital (2) 13.10% 13.42% 13.65% NCO/Avg Loans (3) 0.00% 0.01% 0.03% NPA/Assets 0.02% 0.02% 0.00% Allowance Credit Losses/Loans 1.16% 1.18% 1.16% PROFITABIL
Slide 7: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,763 $1,804 $1,844 $1,872 $1,941 $217 $217 $225 $277 $290 $823 $871 $897 $940 $1,011 $67 $62 $58 $53 $52 $565 $654 $664 $602 $588 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Non-interest -bearing deposits Interest-bearing checking deposits Money market and sa
Slide 8: Deposit Distribution
DEPOSIT DISTRIBUTION EOP for Balance Sheet amounts Deposits Composition Personal Business Broker Deposits Public Funds 11% 37% 49% 3% Deposits by Customer Segment In thousands for balance sheet amounts De posit Type Total Balance % of Total (#) Accounts Average Balance per Account Business $ 944,477
Slide 9: Liquidity
LIQUIDITY EOP for Balance Sheet amounts Total Liquidity 31% 30% 28% 38% 33% 22% 20% 19% 14% 10% On Balance Sheet Liquid Assets Total Liquidity Liquid Assets: On-Balance Sheet Liquidity / Total Assets Total Liquidity: Total Liquidity / Total Assets Sources of Liquidity (in millions) 9/30/2023 On Bala
Slide 10: Loan Portfolio
LOAN PORTFOLIO Total Loans (AVG) In millions 1,399 1,457 1,547 1,569 1,611 $7 $1 $1 $0 $0 $392 $1,456 $1,546 $1,569 $1,611 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Loans (Excl PPP) PPP Loans Loan Yields 4.53% 4.86% 5.17% 5.33% 5.55% 0.03% 0.04% 0.03% 0.02% 0.02% "+ 103 bps Q3'23 vs Q3'22" 4.50% 4.82%
Slide 11: Loan Production
LOAN PRODUCTION Net Loan Production Trend 4.85% 5.68% 6.66% 7.20% 8.00% $130 $129 $94 $67 $135 $71 $54 $22 $51 $55 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Loan Production/Line changes Loan Amortization/payoffs New loans average coupon Commentary $296 million in new loan production in 2023 at increas
Slide 12: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 3.47% 3.45% 3.22% 2.73% 2.60% $16,774 $16,866 $15,997 $14,173 $14,022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net Interest Income NIM Interest-Earning Assets Mix (AVG) 4% 3% 2% 4% 4% 23% 22% 21% 20% 21% 0% 0% 0% 0% 0% 73
Slide 13: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 4% Fixed Rate 41% Variable Rate 55% 17% 13% 70% Prime CMT LIBR/SOFR Loan Repricing Schedule Variable/Hybrid Rate Loans 31% 10% 13% 46% 0-1 yrs 1-2 yrs. 2-3 yrs. >3 yrs. Static NII Simulation Year 1&2 1.5% 2.7% 5.5% 10
Slide 14: Securities Portfolio
SECURITIES PORTFOLIO EOP for Balance Sheet amounts, in millions Portfolio Composition • Treasury • CMO • MBS • CMBS • SBA Leger Agency • Municipalities • Corporate • Bank Subordinated Debt 5% 34% 23% 14% 7% 6% 4% 2% 5% Commentary Securities portfolio had a fair value of $415.9 million. 52.6% of the
Slide 15: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.16% 1.16% 1.20% 1.18% 1.16% $16,604 $17,487 $18,887 $18,815 $19,493 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Allowance for credit losses ACL/Total Loans Non-performing Loans In thousands (except ratios) 0.00% 0.00% 0.03% 0.03% 0
Slide 16: Loan Portfolio Mix
LOAN PORTFOLIO MIX Loan Portfolio Mix (1) Residential real estate CRE - Owner occupied CRE - Non-owner occupied Commercial and industrial Correspondent banks Consumer and other 11% 10% 50% 13% 6% 10% $1,675MM (1) Commentary Total Loan balance at quarter end was $1,675 million (1). Commercial Real Es
Slide 17: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Service fees $1,329 $1,173 $1,205 $1,093 $934 Gain (loss) on sale of securities available for sale (955) - (21) (1,989) (558) Gain on sale of loans held for sale 255 94 347 205 330 Other income 1,532 579 539 568
Slide 18: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Salaries and employee benefits $6,066 $5,882 $6,377 $6,080 $6,075 Occupancy 1,350 1,319 1,299 1,256 1,281 Regulatory assessments and fees 365 452 224 222 269 Consulting and legal fees 513 386 358 371 604 Networ
Slide 19: Capital
CAPITAL Capital Ratios « Q32023 Leverage Ratio TCE/TA & Tier 1 Risk- Based Capital Total Risk- Based Capital AO Cl In Millions 9.26% 8.15% 11.97% 13.10% ($51.2) Q22023 9.32% 8.25% 12.27% 13.42% ($46.3) 9.48% 5.00% 8.71% NA 12.56% 8.00% 13.65% 10.00% ($45.2) Commentary 172,397 common shares remain au
Slide 20: Takeaways
TAKEAWAYS Leading franchise located in one of the most attractive Robust organic growth banking markets in Florida and the U.S. Strong asset quality, with minimal charge - offs experienced since 2015 recapitalization Experienced and tested management team Strong profitability, with pathway for futur
Slide 21: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) 9/30/2023 Pre-Tax Pre-Provision ("PTPP") Income:(1) Net income $ 3,819 Plus: Provision for income taxes 1,250 Plus: Provision for credit losses 653 PTPP income $ PTPP Return on Average Assets: PTPP income $ 5,722 Average assets $ 2,250,
Slide 22: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of and for the three months ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Tangible Book Value per Common Share (at period-end): Total stockholders' equity $ 182,884 $ 183,685 $ 183,858 $ 182,428 $ 177,417 Le
Slide 23: Contact Information
CONTACT INFORMATION LOU DE LA AGUILERA Chairman, President & CEO (305) 715-5186 laguilera@uscentury.com ROB ANDERSON EVP, Chief Financial Officer (305) 715-5393 rob.anderson@uscentury.com INVESTOR RELATIONS InvestorRelations@uscentury.com 23
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