Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q2 2024 Earnings Presentation
21 slides from Uscb Financial's earnings presentation, Jul 25, 2024
Slide 1: Earnings Presentation Second Quarter 2024
Exhibit 99.2 EARNINGS PRESENTATION SECOND QUARTER 2024 NASDAQ: USCB USCB FINANCIAL HOLDINGS U.S. CENTURY BANK
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: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS GROWTH Average deposits increased by $211.4 million or 11.3% compared to the second quarter 2023. Average loans increased $259.2 million or 16.5% compared to the second quarter 2023. Liquidity sources as of June 30, 2024, totaled $615 million in on-balance sheet and off-balance sh
Slide 4: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans $735 $1,869 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Deposits $782 $2,057 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Total stockholders’ equity $86 $201 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 ACL/T
Slide 5: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Q2 2024 Q1 2024 Q2 2023 Balance Sheet (EOP) Total Securities $406,050 $433,030 $439,398 Total Loans (1) $1,869,249 $1,821,196 $1,595,959 Total Assets $2,458,270 $2,489,142 $2,225,914 Total Deposits $2,056,702 $2,102,794 $1,921,301 Total Equity (
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS Q2 2024 Q1 2024 Q2 2023 In thousands (except for TBV/share) GROWTH PROFITABILITY CAPITAL/CREDIT Total Assets (EOP) $2,458,270 $2,489,142 $2,225,914 Total Loans (EOP) $1,869,249 $1,821,196 $1,595,959 Total Deposits (EOP) $2,056,702 $2,102,794 $1,921,301 Tangible Book Value/
Slide 7: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,872 $1,941 $1,914 $2,049 $2,083 $277 $290 $282 $323 $316 $940 $1,011 $1,005 $1,098 $1,101 $53 $52 $50 $53 $56 $602 $588 $577 $575 $610 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Non -interest-bearing deposits Money market and savings Interest -bearing check
Slide 8: Total Loans (Average) and Loan Yields
Total Loans (AVG) In millions $1,569 $1,611 $1,699 $1,782 $1,828 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Loan Yields 5.33% 5.55% 5.79% 6.01% 6.16% 0.02% 0.02% 0.00% 0.00% 0.00% 5.31% 5.53% 5.79% 6.01% 6.16% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Commentary Average loans increased $47.0 million or 1
Slide 9: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 7.20% 8.00% 8.00% 8.16% 8.01% $67 $51 $135 $55 $150 $46 $131 $91 $155 $108 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Loan Production/Line changes Loan Amortization/payoffs New loans average weighted coupon Loan Composition Trend EOP (1) In millions
Slide 10: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 2.73% 2.60% 2.65% 2.62% 2.94% $14,173 $14,022 $14,376 $15,158 $17,311 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Interest Income NIM Interest-Earning Assets Mix (AVG) 4% 4% 2% 5% 4% 20% 21% 19% 18% 19% 76% 75% 79% 77% 7
Slide 11: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 3% Fixed Rate 45% Variale Rate 52% 20% 14% 66% Prime CMT SOFR Loan Repricing Schedule Variable/Hybrid Rate Loans 32% 37% 12% 19% yrs. 1-2 yrs 2-4 yrs ?3 yrs Static NII Simulation Year 1 & 2 Year 1 year 2 $7,000 $2,000
Slide 12: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.18% 1.16% 1.18% 1.18% 1.19% $18,815 $19,493 $21,084 $21,454 $22,230 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.03% 0.03% 0.03% 0.03% 0
Slide 13: 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% 14% 9% 47% 13% 6% Commentary Total loan balance at quarter end was $1,866 million (1). Commercial Real Estate (owner occ
Slide 14: CRE Office Portfolio
CRE OFFICE PORTFOLIO Owner Occupied Office by Business Type In Millions as of 6/30/2024 $19.9 35% $17.9 31% $14.5 26% $4.4 8% Medical/Dental Other Professional Other <$1MM Commentary Total office loan portfolio (owner occupied and non-owner occupied) had 123 notes with an average balance of $1.5 mil
Slide 15: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Total Service fees $1,977 $1,651 $1,348 $1,329 $1,173 Wire Fees $557 $521 $518 $502 $428 Swap Fees $650 $285 $16 $97 $44 Other $770 $845 $814 $730 $701 Gain (loss) on sale of securities available for sale 14 - (
Slide 16: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Salaries and employee benefits $7,353 $6,310 $6,104 $6,066 $5,882 Occupancy 1,266 1,314 1,262 1,350 1,319 Regulatory assessments and fees 476 433 412 365 452 Consulting and legal fees 263 592 642 513 386 Networ
Slide 17: Capital
CAPITAL Capital Ratios O? 2024 Leverage Ratio TCE/TA «2» Tier 1 Risk- Based Capital Total Risk- Based Capital AOCI ln Millon* 9.03% 8.18% 11.93% 13.12% ($44.7) Q12024 Q22023 8.91% 7.83% 11.80% 12.98% ($45.4) 9.32% 8.25% 12.27% 13.42% ($46.3) 5.00% NA 8.00% 10.00% Commentary The Company paid in June
Slide 18: Takeaways
TAKEAWAYS Leading franchise located in one of the most attractive banking markets in Florida and the U.S. Robust organic growth Strong asset quality, with minimal charge-offs experienced since 2015 recapitalization Experienced and tested management team Strong profitability, with pathway for future
Slide 19: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) As of or For the Three Months Bided 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Pre-tax pre-provision ("PTPP") income: (1) Net income S 6.209 S 4,612 S 2,721 S 3,819 S 4,196 Rus: Revision for income tax es 1.967 1,426 787 1,250 1
Slide 20: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of or For the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Tangible book value per common share (at period-end): (1) Total stockholders' equity $ 201,020 S 195,011 S 191.968 S 182.884 S 183,685
Slide 21: 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 21
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