Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q4 2024 Earnings Presentation
34 slides from Uscb Financial's earnings presentation, Jan 24, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Exhibit 99.1 INVESTOR PRESENTATION FOURTH 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, 2024. (1) Its holding company formed in 2021, USCB Financial Holdings,
Slide 5: Located in a Vibrant Economy
LOCATED IN A VIBRANT ECONOMY Florida is one of the largest business markets in the country According to the U.S. Small Business Administration’s October 2024 report, Florida ranks second among states with the largest SBA loan production (6,559 loans) and third in SBA lending amount ($3.5 billion) En
Slide 6: 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 3.4% compared to the nation
Slide 7: Seasoned Management
SEASONED MANAGEMENT Luis de la Aguilera Chairman, President & CEO Previously President & CEO of TotalBank 41+ years in banking Rob Anderson Chief Financial Officer Previously CFO of Capstar Financial Holdings 19+ years in banking Bill Turner Chief Credit Officer Previously CCO of Interamerican Bank
Slide 8: Accomplished Board of Directors
ACCOMPLISHED BOARD OF DIRECTORS Luis de la Aguilera Chairman, President & CEO Previously President & CEO of TotalBank Director since 2016 Aida Levitan Board Member President the Levitan Group Director since 2013 Kirk Wycoff Board Member Managing Partner, Patriot Financial Partners, L.P. Director sin
Slide 9: Our Strategy
OUR STRATEGY Organic Loan Growth: Take advantage of platform that we have developed post 2015 recapitalization, capitalize on fragmented Miami-Dade MSA community banking market, and continue to build market share Capitalize on inherent advantages over smaller community banks which lack our product e
Slide 10: Diversified Business Verticals
DIVERSIFIED BUSINESS VERTICALS Specialty banking products, services and solutions designed for small businesses, homeowner associations, law firms, medical practices and other professional services firms, yacht lending and global banking services Differentiated Banking Product Offerings Jurist Advan
Slide 11: Deposit Aggregating Verticals
DEPOSIT AGGREGATING VERTICALS Deposits Trend (EOP) In millions $88 $229 $312 $352 $446 $492 $626 $48 $129 $138 $154 $177 $16 $18 $10 $38 $77 $68 $97 $112 $125 $30 $62 $97 $130 $172 $164 $218 2018 2019 2020 2021 2022 2023 2024 JA/PCG HOA Corresponding Banking MD Advantage Commentary $538 million in d
Slide 12: Q4 2024 Highlights
Q4 2024 HIGHLIGHTS GROWTH Average deposits increased by $225.0 million or 11.8% compared to the fourth quarter 2023. Average loans increased $260.0 million or 15.3% compared to the fourth quarter 2023. Liquidity sources as of December 31, 2024, aggregated $679 million in on-balance sheet and off-bal
Slide 13: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans (1) In millions $735 $1,973 2016 2017 2018 2019 2020 2021 2022 2023 2024 Deposits In millions $782 $2,174 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Stockholders’ equity In millions $86 $215 2016 2017 2018 2019 2020 2021 2022 2023 202
Slide 14: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Q4 2024 Q3 2024 Q4 2023 Balance Sheet (EOP) Total Securities $424,915 $426,528 $404,303 Total Loans (1) $1,972,848 $1,931,362 $1,780,827 Total Assets $2,581,216 $2,503,954 $2,339,093 Total Deposits $2,174,004 $2,126,617 $1,937,139 Total Equity (
Slide 15: Key Performance Indicators
KEY PERFORMANCE INDICATORS GROWTH PROFITABILITY CAPITAL/CREDI Q4 2024 Q3 2024 Q4 2023 In thousands (except for TBV/share) Total Assets (EOP) $2,581,216 $2,503,954 $2,339,093 Total Loans (EOP) $1,972,848 $1,931,362 $1,780,827 Total Deposits (EOP) $2,174,004 $2,126,617 $1,937,139 Tangible Book Value/S
Slide 16: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,914 $2,049 $2,083 $2,078 $2,139 $282 $323 $316 $326 $341 $1,005 $1,098 $1,101 $1,085 $1,156 $50 $53 $6 $58 $51 $577 $575 $610 $609 $591 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Non-interest-bearing deposits Interest-bearing checking deposits Money market
Slide 17: Liquidity
LIQUIDITY EOP for Balance Sheet amounts Total Liquidity 27% 27% 25% 28% 26% 10% 12% 10% 15% 16% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 On Balance Sheet Liquid Assets Total Liquidity Liquid Assets: On-Balance Sheet Liquidity / Total Assets Total Liquidity: Total Liquidity / Total Assets Sources of Liquid
Slide 18: Loan Portfolio
LOAN PORTFOLIO Total Loans (AVG) In millions $1,699 $1,782 $1,828 $1,878 $1,959 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Loan Yields 5.79% 6.01% 6.16% 6.32% 6.25% "46 bps Q4'23 vs Q4'24" Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Commentary Average loans increased $80.3 million or 17.0% annualized compa
Slide 19: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 8.00% 8.16% 8.01% 7.75% 7.14% $150 $46 $131 $91 $155 $108 $157 $95 $161 $123 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Loan Production/Line charges Loan Amortization/payoffs New loan weighted average coupon Loan Composition Trend EOP (1) In million
Slide 20: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 2.7% 2.6% 2.9% 3.0% 3.2% $14,376 $15,158 $17,311 $18,109 $19,358 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net Interest Income NIM Interest-Earning Assets Mix (AVG) 2% 5% 4% 3% 2% 19% 18% 19% 18% 18% 79% 77% 77% 79% 80% Q4
Slide 21: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 3% Fixed Rate 41% Variable Rate 56% 28% 10% 62% Prime CMT SQFR Loan Repricing Schedule Variable/Hybrid Rate Loans 24% 41% 12% 23% yrs. 1-2 yrs. 2-3 yrs. >3 yrs. Static NII Simulation Year 1 & 2 -100 -1.2% 0.6% +100 -1
Slide 22: Securities Portfolio
SECURITIES PORTFOLIO EOP for Balance Sheet amounts, in millions Portfolio Composition CMO MBS CMBS SBA Agency Municipalities Corporate Bank Subordinated Debt 6% 32% 21% 22% 7% 6% 4% 2% Securities Portfolio Key Metrics Metrics as of 12/31/2024 Securities Portfolio $ 424.9 AFS as % of portfolio 61% HT
Slide 23: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.18% 1.18% 1.19% 1.19% 1.22% $21,084 $21,454 $2,230 $23,067 $24,070 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.03% 0.03% 0.04% 0.14% 0.
Slide 24: 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 15% 10% 48% 13% 4% 10% $1,965 MM(1) Commentary Total loan balance at quarter end was $1,965 million (1). Commercial Real Es
Slide 25: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Total service fees $2,667 $2,544 $1,977 $1,651 $1,348 Wire fees $587 $563 $557 $521 $518 Swap fees $1,076 $1,285 $650 $285 $16 Other $1,004 $696 $770 $845 $814 Gain (loss) on sale of securities available for sal
Slide 26: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Salaries and employee benefits $7,930 $7,200 $7,353 $6,310 $6,104 Occupancy 1,337 1,341 1,266 1,314 1,262 Regulatory assessments and fees 405 452 476 433 412 Consulting and legal fees 552 161 263 592 642 Networ
Slide 27: Capital
CAPITAL Capital Ratios (1) Leverage Ratio TCE/TA (2) Tier 1 Risk-Based Capital Total Risk-Based Capital AOCI In Millions Q4 2024 9.53% 8.34% 12.28% 13.51% ($44.5) Q3 2024 9.34% 8.54% 12.01% 13.22% ($38.0) Q4 2023 9.28% 8.21% 11.62% 12.78% ($44.3) Well- Capitalized 5.00% NA 8.00% 10.00% Commentary Th
Slide 28: 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 29: 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 ente
Slide 30: Appendix – Technology Support
APPENDIX – TECHNOLOGY SUPPORT 2016 • : Paperless Account Opening T • — January ‘16-April ‘16 • J s — International Letter of Credit eTran April 16—July‘16 / Reporting Database Fs EMV Debit Cards August ‘16 - October ‘16 . May ‘16 - September 16 / 2017 / v c 2rdr, Instant Issue Debit Card once Octobe
Slide 31: Appendix – Technology Support
APPENDIX – TECHNOLOGY SUPPORT 2022 Y M A MI Remote Account Opening -- Oaober'21-Mürch'22 y Secureworks MXDR platform Feb ‘22-July22‘ / / . r Ring Central call reporting It October ‘22 - March ‘23 • . 5 ■ — 2023 -- abrigo Loan origination system 9 June ‘22 - May 23 w edN w 1 FED Now payments January
Slide 32: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) As of or For the Three Mon ths Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Pre-tax pre-provision ("PTPP") income: Net income Plus: Provision income taxes Plus: Provision br credit losses PTPP income PTPP return on average
Slide 33: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of or For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Tangible book value per common share (at period-end): (1) Total stockholders’ equity $ 215,388 $ 213,916 $ 201,020 $ 195,011 $ 191,96
Slide 34: 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 34
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