Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q3 2024 Earnings Presentation
21 slides from Uscb Financial's earnings presentation, Oct 31, 2024
Slide 1: Earnings Presentation Third Quarter 2024
Exhibit 99.2 EARNINGS PRESENTATION THIRD QUARTER 2024 NASDAQ: USCB USCB FINANCIAL HOLDING | 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: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS GROWTH Average deposits increased by $136.1 million or 7.0% compared to the third quarter 2023. Average loans increased $267.4 million or 16.6% compared to the third quarter 2023. Liquidity sources as of September 30, 2024, aggregated $695 million in on-balance sheet and off-balan
Slide 4: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans (1) In millions $735 $1,931 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 2024 2024 2024 Deposits In millions $782 $2,127 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 2024 2024 2024 Total stockholders' equity In millions $86 $214 2016
Slide 5: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Q3 2024 Q2 2024 Q3 2023 Balance Sheet (EOP) Total Securities $426,528 $406,050 $415,920 Total Loans (1) $1,931,362 $1,869,249 $1,676,520 Total Assets $2,503,954 $2,458,270 $2,244,602 Total Deposits $2,126,617 $2,056,702 $1,920,922 Total Equity (
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS Q3 2024 Q2 2024 Q3 2023 In thousands (except for TBV/share) GROWTH Total Assets (EOP) $2,503,954 $2,458,270 $2,244,602 Total Loans (EOP) $1,931,362 $1,869,249 $1,676,520 Total Deposits (EOP) $2,126,617 $2,056,702 $1,920,922 Tangible Book Value/Share (1)(2) $10.90 $10.24 $9
Slide 7: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,941 $1,914 $2,049 $2,083 $2,078 $290 $282 $323 $316 $326 $1,011 $1,005 $1,098 $1,101 $1,085 $52 $50 $53 $56 $58 $588 $577 $575 $610 $609 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Non-interest -bearing deposits Money market and savings Interest-bearing chec
Slide 8: Loan Portfolio
LOAN PORTFOLIO Total Loans (AVG) In millions 2.39% 2.53% 2.76% 2.64% 2.66% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Loan Yields $1,611 $1,699 $1,782 $1,828 $1,878 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 5.55% 5.79% 6.01% 6.16% 6.32% 0.02% 0.00% 0.00% 0.00% 0.00% 5.37% 5.79% 6.01% 6.16% 6.32% + 79 Q3'
Slide 9: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 8.00% 8.00% 8.16% 8.01% 7.75% $135 $55 $150 $46 $131 $91 $155 $108 $157 $83 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Loan Production/Line changes Loan Amortization/payoffs New loans weighted average coupon Loan Composition Trend EOP (1) In million
Slide 10: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (Except ratios) 2.60% 2.65% 2.62% 2.94% 3.03% $14,022 $14,376 $15,158 $17,311 $18,109 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Interest Income NIM Interest-Earning Assets Mix (AVG) 4% 2% 5% 4% 3% 21% 19% 18% 19% 18% 75% 79% 77% 77% 7
Slide 11: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 3% Fixed Rate 44% Variable Rate 53% 23% 12% 65% Prime CMT SQFR Loan Repricing Schedule Variable/Hybrid Rate Loans 29% 38% 12% 21% yrs. 1-2 yrs. 2-3 yrs. >3 yrs. Static NII Simulation Year 1 & 2 $4,000 $3,000 $2,000 $1
Slide 12: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.16% 1.18% 1.18% 1.19% 1.19% $19,493 $21,084 $21,454 $22,230 $23,067 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.03% 0.03% 0.03% 0.04% 0
Slide 13: Loan Portfolio Mix
LOAN PORTFOLIO MIX Loan Portfolio Mix (1) 10% 15% 10% 47% 13% 5% $1,928 MM(1) Residential real estate CRE – Owner occupied CRE – Non-owner occupied Commercial and industrial Correspondent banks Consumer and other Commentary Total loan balance at quarter end was $1,928 million (1). Commercial Real Es
Slide 14: CRE Office Portfolio
CRE OFFICE PORTFOLIO Owner Occupied Office by Business Type In Millions as of 9/30/2024 $19.2 30% $16.4 25% $24.8 38% $4.4 7% Medical/Dental Other Professional Other <$1MM Commentary Total office loan portfolio (owner occupied and non-owner occupied) had 120 notes with an average balance of $1.5 mil
Slide 15: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Total service fees $2,544 $1,977 $1,651 $1,348 $1,329 Wire fees $563 $557 $521 $518 $502 Swap fees $1,285 $650 $285 $16 $97 Other $696 $770 $845 $814 $730 Gain (loss) on sale of securities available for sale - 1
Slide 16: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Salaries and employee benefits $7,200 $7,353 $6,310 $6,104 $6,066 Occupancy 1,341 1,266 1,314 1,262 1,350 Regulatory assessments and fees 452 476 433 412 365 Consulting and legal fees 161 263 592 642 513 Networ
Slide 17: Capital
CAPITAL Capital Ratios Q3 2024 Q2 2024 Q3 2023 Well-Capitalized Leverage Ratio 9.34% 9.03% 9.26% 5.00% TCE/TA 8.54% 8.18% 8.15% NA Tier 1 Risk-Based Capital 12.01% 11.93% 11.97% 8.00% Total Risk - Based Capital 13.22% 13.12% 13.10% 10.00% AOCI ($38.0) ($44.7) ($51.2) In Millions Commentary The Compa
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 APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) Pre-tax pre-provision ("PTPP") income: Net income Plus: Provision for income taxes Plus: Provision for credit losses PTPP income PTPP return on average as sets: As of or For the Three Months Ended 9/30
Slide 20: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) 9/30/2024 3/31/2024 As of or For the Three Months Ended 6/30/2024 12/31/2023 9/30/2023 Tangible book value per common share (at period-end): (1) Total stockholders' equity $ 213,916 $ 201,020 $ 195,011 $ 191,968 $ 182,884
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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