Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q4 2023 Earnings Presentation
24 slides from Uscb Financial's earnings presentation, Jan 25, 2024
Slide 1: Earnings Presentation Fourth Quarter 2023
Exhibit 99.2 EARNINGS PRESENTATION FOURTH QUARTER 2023 NASDAQ: USCB USCB Financial Holdings US 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: Q4 2023 Highlights
Q4 2023 HIGHLIGHTS GROWTH Average deposits increased by $109.7 million or 6.1% compared to the fourth quarter 2022. Average loans increased $241.8 million or 16.6% compared to the fourth quarter 2022. Liquidity sources on December 31, 2023, totaled $620 million in on-balance sheet and off-balance sh
Slide 4: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans In millions2016 $735 2017 2018 2019 2020 2021 2022 2023 $1,781 Deposits In millions 2016 $782 2017 2018 2019 2020 2021 2023 $1,937 Total stockholders' equity In millions 2016$86 2017 2018 2019 2020 2021 2022 2023 $192 Allowance for credit los
Slide 5: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Q4 2023 Q3 2023 Q4 2022 Total Securities $404,303 $415,920 $418,839 Total Loans (1) $1,780,827 $1,676,520 $1,507,338 Total Assets $2,339,093 $2,244,602 $2,085,834 Total Deposits $1,937,139 $1,920,922 $1,829,281 Total Equity (2) $191,968 $182,844
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS Q4 2023 Q3 2023 Q4 2022 In thousands (except for TBV/share) Total Assets (EOP) $2,339,093 $2,244,602 $2,085,834 Total Loans (EOP) $1,780,827 $1,676,520 $1,507,338 Total Deposits (EOP) $1,937,139 $1,920,922 $1,829,281 Tangible Book Value/Share (1)(4) $9.81 $9.36 $9.12 Retur
Slide 7: Deposit Portfolio
DEPOSIT PORTFOLIO in this slide the Deposits AVG totals must be updated manually Same goes for the red bps math Deposits AVG In millions $1,804 $217 $62$654Q42022 $1,844 $225 $897 $58 $664 Q12023 $1,872 $277 $940 $53 $602 Q22023 $1,941 $290 $52 $588 Q3 2023 $1,914 $282 $1,005 $50 $577 Q42023 Non-int
Slide 8: Deposit Distribution
DEPOSIT DIST EOP for Balance Sheet amounts RIBUTION Deposits Composition Personal Business Brokered deposits Public Funds 3% 14%33%50% Commentary Our deposit base reflects our business model: a commercial bank. The total amount of uninsured deposits was 55% at quarter end.As of December 31, 2023, th
Slide 9: Deposits Trend
Deposits Trend (EOP) In millions $88 $30 $10 $48 12/31/2018 $229 $62 $38 $129 12/31/2019 $312 $97 $77 $138 12/31/2020 $352 $1 30$68$154 12/31/2021 $446 $172 $97 $177 12/31/2022$492 $16 $164 $112 $200 12/31/2023Global HOA JA MD advantage Commentary $404 million in deposit growth compared to December
Slide 10: Liquidity
LIQUIDITYEOP for Balance Sheet amountsTotal Liquidity30%28%38%33%27% 20% 19% 14% 10% 10% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23On Balance Sheet Liquid Assets Total Liquidity Liquid Assets: On-Balance Sheet Liquidity / Total Assets Total Liquidity: Total Liquidity / Total AssetsSources of Liquidity (in m
Slide 11: Loan Portfolio
LOAN PORTFOLIOTotal Loans (AVG) In millions $1,457 $1$1,456 Q4 2022 $1,547 $1 $1,546 $1,569 $0$1,569 Q2 2023 $1,611 $0$1,611 Q3 2023 $1,699 $0$1,699 Q4 2023Loans (Excl PPP) PPP LoansLoan Yields4.86% 0.04% 4.82% 5.17%0.03%5.14%5.33%0.02%5.31%5.55%0.02%5.53%5.79%0.00%5.79%Q42022 Q12023 Q22023 Q42023Lo
Slide 12: Loan Production
LOAN PRODUCTIONNet Loan Production TrendIn millions$129$545.68%$94$22$67$516.66%7.20%$67$517.20%8.00%$135$55$150$46 Q42022Q12023Q22023Q32023Q42023Loan Production/Line changes Loan Amortization/payoffs New loansaverage couponLoan Composition Trend(1) In millions$94828%63%9%Jun-20$1,77912%62%26% Dec-2
Slide 13: Net Interest Margin
NET INTEREST MARGINNet Interest Income/Margin (1)in thousands(except ratios)3.45%$16,866 Q42022 3.22%$15,997Q120232.73%$14,173 Q2 2023 2.60% $14,022 Q3 2023 2.65% $14,376Q42023Net interest income NIMInterest-Earning Assets Mix(AVG)3%22%75%2%21%77%4%20%76%4%21%75%2%19%79%Q42022Q 12023Q22023Q32023Q420
Slide 14: Interest Rate Sensitivity
INTEREST RATE SENSITIVITYin this slide the Static NII Simulation percentages must be updated manuallyLoan Portfolio Repricing Profile by Rate Type Fixed Rate 42% Hybrid ARM 4% Variable Rate54% 17%15%68% Prime CMT LIBOR/SOFR Loan Repricing ScheduleVariable/Hybrid Rate Loans46%13%9%32%0-1yrs1-2yrs2-3y
Slide 15: Securities Portfolio
SECURITIES PORTFOLIOEOP for Balance Sheet amounts, in millionsPortfolio CompositionCMO MBS CMBS SBA Agency Municipalities Corporate Bank subordinated Debt24%14%7%6%5%2%7%35%Commentary Securities portfolio was $404.3 million; 56.7% of the portfolio is classified as AFS, while 43.3% is classified as H
Slide 16: Asset Quality
ASSET QUALITYAllowance for Credit Lossesin thousands (except ratios) 1.16% 1.20% 1.18% 1.16% 1.18% $17,487 Q42022 $18,887 Q12023 $18,815 Q22023 $19,493 Q3 2023 $21,084 Q4 2023Allowance for credit losses ACL Total LoansNon-performing Loans in thousands (except ratios)0.00% $0Q4 2022 0.03% $486 Q12023
Slide 17: Loan Portfolio Mix
LOAN PORTFOLIO MIXLoan Portfolio Mix (1)Residential real estate CRE -owner occupied CRE Non-owner occupied commercial and industrial correspondent banks consumer and other49%12%6%11%12%10%$1,779MM(1) CommentaryTotal loan balance at quarter end was $1,779 million (1).Commercial Real Estate (owner occ
Slide 18: Non-Interest Income
NON-INTEREST INCOMEService feesGain $1,348 $1,329$1,173$1,205$1,093 (loss) on sale of securities available for sale(883) (955) -(21) (1,989Gain on sale of loans held for sale10525594347205Other income756 1,532 579539568Total non-interest income$1,326$2,161$1,846$2,070($123) Average total assets$2,26
Slide 19: Non-Interest Expense
NON-INTEREST EXPENSEQ4 2023Q3 2023Q2 2023Q1 2023Q4 2022In thousands (except ratios) 1,299 Salaries and employee benefits$6,104$6, 066$5,882$6,377$6,080Occupancy1,2621,3501,3191,2991,256Regulatory assessments and fees412365452224222Consulting and legal fees642513386358371Network and information techn
Slide 20: Capital
CAPITALCapital Ratios (1) Q4 2023Q3 2023Q4 2022Well- CapitalizedLeverage RatioTCE/TA (2) Tier 1 Risk-Based CapitaTotal Risk-Based Capitall9.28%9.26%9.61%5.00%8.09%8.15%8.75%NA11.62%11.97%12.53%8.00%12.78%13.10%13.65%10.00%AOCIIn Millions($44.3) ($51.2) ($44.8) CommentaryDuring the quarter, the Compa
Slide 21: Takeaways
TAKEAWAYSLeading franchise located in one of the most attractive banking markets in Florida and the U.S. Robust organic growthStrong asset quality, with minimal charge-offs experienced since 2015 recapitalizationExperienced and tested management teamStrong profitability, with pathway for future enha
Slide 22: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATIONIn thousands (except ratios) Pre-tax-provison (“PTPP”) income: As of or for the three months ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022Net income (1) $2,721 $3,819 $ 4,196 $5,809 $4,434 Plus :Provision for income taxes 787 1,250 1,333 1,881 1,415 Plus
Slide 23: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATIONIn thousands (except ratios and share data)As of or the for the three months ended Tangible book value per common share (at period -end) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022Total shareholder’s equity $ 191,9 68 $182,884 $183,858 $182,428 Less:Intangib
Slide 24: Contact and Investor Relations
LOU DE LA AGUILERAChairman, President & CEO (305) 715-5186laguilera@uscentury.com ROB ANDERSONEVP, Chief Financial Officer(305) 715-5393rob.anderson@uscentury.comINVESTOR RELATIONSInvestorRelations@uscentury.com
USCB Financial Holdings — Q4 2023 Earnings Presentation on 6ix