Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q2 2024 Earnings Presentation
37 slides from Uscb Financial's earnings presentation, Jul 29, 2024
Slide 1: Investor Presentation Second Quarter 2024
Exhibit 99.1 INVESTOR 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: Table of Contents
TABLE OF CONTENTS (1) Who We Are (2) Growth Strategy (3) Financial Review (4) Appendix 3
Slide 4: We Are a Relationship-First Bank
WE ARE A RELATIONSHIP-FIRST BANK Company Overview Founded in 2002, U.S. Century Bank is a state-chartered bank headquartered in South Florida 9th largest Florida headquartered bank by deposits in Miami Dade County as of June 30, 2023 (1) The Bank issued its initial public offering in July 2021, rais
Slide 5: Located in a Vibrant Economy
LOCATED IN A VIBRANT ECONOMY Florida is one of the largest business markets in the country As of the 3rd quarter 2023. Florida GDP reached $1.6 trillion, ranking as the 4th largest economy in the U.S. (1) As of July 2024, CNBC’s ranked Florida as the best economy among the 50 states based on economi
Slide 6: Attractive Demographics
ATTRACTIVE DEMOGRAPHICS Household Income Projected Growth 2022-2027 (1) Miami leads expectations of income growth with a 5-year growth rate of 16.98%. 9 cities within the current USCB network are expected to have growth greater than the U.S. and Florida averages Miami-Dade MSA is the premier market
Slide 7: Attractive Demographics
ATTRACTIVE DEMOGRAPHICS 2nd second state with highest population growth from April 1, 2020 to July 2023, totaling almost 1 million increase in population (1) 6th place GDP growth in the U.S., 160 bps above national average in 1st quarter of 2024 (2) Unemployment rate was 2.9% compared to the nationa
Slide 8: Seasoned Management
SEASONED MANAGEMENT Luis de la Aguilera Chairman, President & CEO Previously President & CEO of Total Bank 40+ years in banking Rob Anderson Chief Financial Officer Previously CFO of Capstar Financial Holdings 18+ years in banking Bill Turner Chief Credit Officer Previously CCO of Interamerican Bank
Slide 9: Accomplished Board of Directors
ACCOMPLISHED BOARD OF DIRECTORS Luis de la Aguilera Aida Levitan Chairman, President & CEO Board Member Previously President & CEO of TotalBank President the Levitan Group Director since 2016 Director since 2013 Kirk Wvcoff wwwvvwvw Board Member Managing Partner, Patriot Financial Partners, L.P. Dir
Slide 10: Our Strategy
OUR STRATEGY Organic Loan Growth Take advantage of platform that we have developed post recap, capitalize on fragmented Miami-Dade, Broward, and Palm Beach Counties community banking market, and continue to build market share Capitalize on inherent advantages over smaller community banks which lack
Slide 11: Diversified Business Verticals
DIVERSIFIED BUSINESS VERTICALS Differentiated Banking Product Offerings Specialty banking products, services and solutions designed for small/medium businesses, homeowner associations, law firms, medical practices and other professional services firms, yacht lending and global banking services Juris
Slide 12: 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 on June 30, 2024, totaled $615 million in on-balance sheet and off-balance sheet
Slide 13: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans In millions $735 $1,869 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Deposits In millions $782 $2,057 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 2024 2024 Total stockholders’ equity In millions $86 $201 2016 2017 2018 2019 2020
Slide 14: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Balane 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 (2) $201,020 $195,011 $183
Slide 15: Key Performance Indicators
KEY PERFORMANCE INDICATORS Q2 2024 Q1 2024 Q2 2023 GROWTH 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/Share (1)(4) $10.24 $9.92 $9.40 PROFITABILITY Return On Average A
Slide 16: 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 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Non-interest-bearing deposits Money market and savings Interest-bearing
Slide 17: Deposit Aggregating Verticals
DEPOSIT AGGREGATING VERTICALS Deposits Trend (EOP) In millions $88 $229 $312 $352 $446 $492 $554 $602 $48 $129 $138 $154 $177 $200 $209 $226 $10 $38 $77 $68 $97 $112 $134 $131 $30 $62 $97 $130 $172 $164 $211 $245 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 JA/PCG HOA Corresponding Baking Commentar
Slide 18: Liquidity
LIQUIDITY EOP for Balance Sheet amounts Total Liquidity 38% 33% 27% 27% 25% 14% 10% 10% 12% 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) 06/30/2024 On Bal
Slide 19: Loan Portfolio
LOAN PORTFOLIO 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% +85 bos 5.31% 5.53% 5.79% 6.01% 6.16% Q2'23 vs Q2'24 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Loan coupon Loa
Slide 20: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 7.20% 8.00% 8.16% 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 weighted average coupon Loan Composition Trend EOP (1) In millions
Slide 21: 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-Earnings Assets Mix (AVG) 4% 4% 2% 5% 4% 20% 21% 19% 18% 19% 76% 75% 7*9% 77%
Slide 22: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 3% Fixed Rate 45% Variable Rate 52% 20% 14% 66% Prime CMT SOFR Loan Repricing Schedule Variable/Hybrid Rate Loans 32% 37% 12% 19% yrs. 1-2 yrs. 2-3 yrs. >3 yrs. Static NII Simulation Year 1 & 2 Year 1 Year 2 $7,000 $2
Slide 23: Securities Portfolio
SECURITIES PORTFOLIO EOP for Balance Sheet amounts, in millions • Treasury • CMO • MBS CMBS SBA • Agency • Municipalities Corporate • Bank Subordinated Debt 6% 35% 23% 16% 7% 6% 5% 2% Securities Portfolio Key Metrics Metrics as of 6/30/2024 Securities Portfolio s 406.1 AFS as % of portfolio 58% HIM
Slide 24: Asset Quality
ASSET QUALITY 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% 0.04% $486 $479 $468 $456 $75
Slide 25: 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% $1,866 MM CRE Loan Mix Land/Construction 4% Other 3% Retail 26% Multifamily 19% CRE - Owner
Slide 26: CRE Office Portfolio
CRE OFFICE PORTFOLIO Owner Occupied Office by Business Type $19.9 35% $17.9 31% $14.5 26% $4.4 8% Medical/Dental Other Professional Other <$1MM Non-Owner Occupied Office by Business Type $83.5 68% $20.9 17% $4.9 4% $13.0 11% Multi-Tenant Medical/Dental Other <$1MM < 1 year 1 year to 3 years 3 years
Slide 27: 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 28: 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 29: Capital
CAPITAL Capital Ratios i Leverage Ratio TCE/TA I2' Tier 1 Risk- Based Capital Total Risk- Based Capital AOCI ln M libo ns H Q22024 S 1 Q12024 I Q22023 K t^BÊ t^BÊ 9.03% 8.91% 9.32% 8.18% 7.83% 8.25% 11.93% 11.80% 12.27% 13.12% 12.98% 13.42% ($44.7) ($45.4) ($46.3) 5.00% NA 8.00% 10.00% Commentary Th
Slide 30: 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 31: Appendix – Risk Management
APPENDIX – RISK MANAGEMENT Risk Management Philosophy and Culture Management has instilled a culture of adherence to well-developed risk management procedures Management is responsible for day-to-day risk management (identifying, evaluating, and addressing potential risks that may exist at the enter
Slide 32: Appendix – Digital Initiatives
APPENDIX – DIGITAL INITIATIVES 2016 2017 2018 2019 • • Paperless Account Openii ' ' ■=> Januory '16-April '16 eTran international Letter Of Credit April '16 -July '16 _ Reporting Database Q May ‘16 - September '16 f=IS EMV Debit Cards August ‘16 - October '16 <*'«m0nce instant issue Debit Card Octob
Slide 33: Appendix – Digital Initiatives
APPENDIX – DIGITAL INITIATIVES \ r 2022 2023 2024 - 2025 MANTL Remote Account Opening October '21 - March '22 Sw Secureworks MXDR platform Feb '22-Juty 221 y — rK\ atXKJO Loan otigifafR»1 system ^ June '22 - May 23 f FtdW* FED Now payments January ‘23 - October 23 f \ a. PBX (SaaS) - Teams Calling t
Slide 34: Appendix – Yacht Financing Segment
APPENDIX – YACHT FINANCING SEGMENT 2024 Boat Shows Tampa Boat Show Mar 1-3, 2024 Naples Boat Show Jan 18-21, 2024 Vero Beach Boat Show Nov 23-24, 2024 Palm Beach Boat Show Mar 21-24, 2024 Ft. Lauderdale Boat Show Oct 30 - Nov 3, 2024 Miami Boat Show Feb 14-18, 2024 Commentary Prime location: 2nd lar
Slide 35: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) As of or For the Three Months Ended 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 Plus: Provision for in come taxes Plus: Provision for c
Slide 36: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) 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 Less: Intangib
Slide 37: 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 37
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