Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q2 2023 Earnings Presentation
23 slides from Uscb Financial's earnings presentation, Jul 27, 2023
Slide 1: Earnings Presentation Second Quarter 2023
Exhibit 99.2 EARNINGS PRESENTATION SECOND QUARTER 2023 NASDAQ: USCB
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 2023 Highlights
Q2 2023 HIGLIGHTS GROWTH Average deposits increased by $155.8 million or 9.1% compared to the second quarter 2022. Liquidity sources increased to $853 million in on-balance sheet and off-balance sheet sources. Insured and collateralized deposit, increased to 51% from 43% in the second quarter 2022.
Slide 4: Historical Financial
HISTORICAL FINANCIAL EOP for Balance Sheet amounts Loans (1) In millions $735 $1,596 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 2023 2023 Deposits In millions $782 $1,921 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 2023 2023 Total Stockholder’s Equity In millions $86 $184 2016 2017 2018 2019 2020 2021 20
Slide 5: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Q2 2023 Q1 2023 Q2 2022 Balance Sheet (EOP) Total Securities $439,398 $415,837 $456,135 Total Loans (1) $1,595,959 $1,580,394 $1,372,733 Total Assets $2,225,914 $2,163,821 $2,016,086 Total Deposits $1,921,301 $1,830,462 $1,738,720 Total Equity (
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS CAPITAL/ CREDIT PROFITABILITY GROWTH Q2 2023 Q1 2023 Q2 2022 Tangible Common Equity/Tangible Assets (1) 8.25% 8.50% 8.93% Total Risk-Based Capital (2) 13.42% 13.20% 13.74% NCO/Avg Loans (3) 0.01% (0.01%) 0.00% NPA/Assets 0.02% 0.02% 0.00% Allowance Credit Losses/Loans 1.18
Slide 7: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,717 $1,763 $1,804 $1,844 $1,872 $224 $217 $217 $225 $277 $781 $823 $871 $897 $940 $67 $67 $62 $58 $53 $645 $656 $654 $664 $602 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Non-interest-bearing deposits Money market and savings Interest-bearing checking deposi
Slide 8: Deposit Distribution
DEPOSIT DISTRIBUTION EOP for Balance Sheet amounts Deposits Composition Public Funds 11% Personal 36% Broker Deposits 3% Business 50% Commentary Our deposit base reflects our business model: a commercial bank. The total amount of uninsured deposits adjusted by the collateralized portion of public fu
Slide 9: Liquidity
LIQUIDITY EOP for Balance Sheet amounts Total Liquidity 29% 31% 30% 28% 38% 25% 22% 20% 19% 14% Jun-22 Sep-23 Dec-23 Mar-23 Jun-23 On Balance Sheet Liquid Assets Total Liquidity Liquid Assets: On-Balance Sheet Liquidity / Total Assets Total Liquidity: total Liquidity / Total Assets Commentary We bel
Slide 10: Loan Portfolio
LOAN PORTFOLIO Total Loans (AVG) In millions Loans (Excl PPP) PPP Loans Loans Yields 4.35% 4.53% 4.86% 5.17% 5.33% 0.13% 0.03% 0.04% 0.03% 0.02% +109 bps 4.22% 4.50% 4.82% 5.14% 5.31% Q2'23 vs Q2'22 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Loan coupon Loan fees Commentary Average loans, excluding PPP
Slide 11: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 4.44% 4.85% 5.68% 6.66% 7.20% $169 $56 $130 $71 $129 $54 $94 $22 $67 $51 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Loan Production & Line Changes Loan Amortization & payoffs New loans average coupon Loan Composition Trend (1) In millions $948 $1,59
Slide 12: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 3.37% 3.47% 3.45% 3.22% 2.73% 3.27% 3.45% 3.45% 3.22% 2.73% $15,642 $16,774 $16,866 $15,997 $14,173 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net Interest Income NIM NIM excluding PPP Loans Interest-Earning Assets Mix (AVG
Slide 13: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile By Rate Type Hybrid ARM 5% Fixed Rate 38% Variable Rate 57% 18% 15% 67% Prime CMT LIBOR/SOFR 46% 33% 8% 13% 46% yrs. 1-2 yrs 2-3 yrs. >3yrs. Static NII Simulation Year 1 & 2 Year 1 Year 2 -0.1% -0.6% 3.9% 6.7% +100 +200 +100 +200 Net interes
Slide 14: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.15% 1.16% 1.16% 1.20% 1.18% $15,786 $16,604 $17,487 $18,887 $18,815 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Allowance for credit loss ACL/Total loans Commentary ACL coverage ratio is at 1.18%, slightly down from prior quarter d
Slide 15: 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% 11% 10% 52% 11% 50% $1,595MM Commentary Total Loan balance at quarter end was $1,595 million (1). Commercial Real Estat
Slide 16: CRE Office Portfolio
CRE OFFICE PORTFOLIO Loan size 77 25 8 7 3 $32 $46 $32 $41 $25 Under $1MM "$1MM- $3MM" "$3MM- $5MM" "$5MM- $7MM" "$7MM- $10MM" Outstanding Balance as of 6/30/2023 Number of Loans Key Metrics At 6/30/2023 Avg. Loan Size in millions $ 1.5 Portfolio NCOs/ Average Loans 0.00% performing with clean Delin
Slide 17: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Service fees $1,173 $1,205 $1,093 $934 $1,083 Gain (loss) on sale of securities available for sale - (21) (1,989) (558) (3) Gain on sale of loans held for sale 94 347 205 330 22 Other income 579 539 568 1,083 51
Slide 18: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Salaries and employee benefits $5,882 $6,377 $6,080 $6,075 $5,913 Occupancy 1,319 1,299 1,256 1,281 1,251 Regulatory assessments and fees 452 224 222 269 226 Consulting and legal fees 386 358 371 604 398 Networ
Slide 19: Capital
CAPITAL Capital Ratios Q2 2023 Q1 2023 Q2 2022 Well-Capitalized Leverage Ratio 9.32% 9.36% 9.43% 5.00% TCE/TA 8.25% 8.50% 8.93% NA Tier 1 Risk Based Capital 12.27% 12.04% 12.65% 8.00% Total Risk Based Capital 13.42% 13.20% 13.74% 10.00 AOCI In Millions ($47.1) ($42.1) ($36.9) Commentary Repurchased
Slide 20: Takeaways
TAKEAWAYS Leading franchise located in one of the most attractive banking markets in Florida and the U.S. Robust organic growth Strong asset quality, with minimal charge-offs experienced since 2015 recapitalization Experienced and tested management team Strong profitability, with pathway for future
Slide 21: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousand$(except ratios) A$of or for the three month$ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 U/JUí _u¿o Pre-Tax Pre-Provision ("PTPP") Income: Net income $4:196 Plus: Provision for income taxe$1:333 Plus: Provision for credit losse$ 3S_ PTPP inc
Slide 22: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) 6/30/2023 Tangible Book Value per Common Share (at period-end): Total stockholders 'equity S 183:685 Less: Intangible assets - Tangible stockholders 'equity S 183:685 Total shares issued and outstanding (at period-end): T
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
USCB Financial Holdings — Q2 2023 Earnings Presentation on 6ix