Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q2 2023 Earnings Presentation
35 slides from Uscb Financial's earnings presentation, Aug 7, 2023
Slide 1: USCB Financial Holdings, Inc.
Exhibit 99.1 USCB Financial Holdings Inc. NASDAQ: USCB USCB FINANCIAL HOLDINGS
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 Who We Are Growth Strategy Financial Review Appendix 3
Slide 4: We are a Relationship-First, Business Bank
We are a Relationship-First, Business Bank Company Overview Founded in 2002, U.S. Century Bank is a state-chartered bank headquartered in South Florida 8th largest Florida headquartered bank by deposits in Miami Dade County as of June 30, 2022. (1) Its holding company formed in 2021, USCB Financial
Slide 5: Historical Financials
Historical Financials EOP for Balance Sheet amounts Loans (1) In millions $735 $1,596 Deposits In millions $782 $1,921 Total Stockholders’ Equity In millions $86 $184 ACL/Total Loans 1.17% 1.18% Net Charge Offs In thousands -$1,019 $29 Nonperforming Assets/Total Assets 1.58% 0.02% Total Revenue In m
Slide 6: Diversified Business Verticals
Diversified Business Verticals SBA / Small Business Lending $40MM Loans Relationship-oriented business focused on delivering fast loan commitments to small and medium-sized enterprises Predominately Small business line of credits and CD secured loans Affordable SBA loan provider Approved by the SBA
Slide 7: Located in a Vibrant Economy
Located in a Vibrant Economy DORAL HEADQUARTERS Florida is one of the largest business markets in the country According to the U.S. Small Business Administration’s 2022 report, Florida ranks third among states with the largest number of small businesses (three million) Enterprise Florida reported th
Slide 8: 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 US and Florida averages Miami-Dade MSA is the premier market wi
Slide 9: Seasoned Management
Seasoned Management Luis de la Aguilera Chairman, President & CEO Previously President & CEO of TotalBank 40+ years in banking Rob Anderson Chief Financial Officer Previously CFO of Capstar Financial Holdings 18+ years in banking Benigno Pazos Chief Credit Officer Previously CCO of TotalBank 42+ yea
Slide 10: 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 Gorup Director since 2013 Kirk Wycoff Board Member Managing Partner, Patriot Financial Partners, L.P. Director sin
Slide 11: Our Strategy
Our Strategy Organic Loan Growth: Take advantage of platform that we have developed post recap, 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 expertise and br
Slide 12: Q2 2023 Highlights
Q2 2023 Highlights 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 13: 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 14: Key Performance Indicators
Key Performance Indicators Q2 2023 Q1 2023 Q2 2022 CAPITAL/CREDIT PROFITABILITY GROWTH 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 15: 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 16: Deposit Distribution
Deposit Distribution EOP for Balance Sheet amounts Deposits Composition Person 36% Business 50% Brokered Deposits 3% Public Funds 11% 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 17: Liquidity
Liquidity EOP for Balance Sheet amounts Total Liquidity 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) 6/30/2023 On Balance Sheet Liquidity Cash $7 Due from ban
Slide 18: Loan Portfolio
Loan Portfolio Total Loans (AVG) In millions $1,399 Q2 2022 03 2022 $1,547 $1,569 Q4 2022 Ql 2023 Q2 2023 Loans (Excl PPP) PPP Loans Loans Yields 4.35% 0.13% 4.22% 4.53% 4.86% 0.04% 0.03% 4.82% 4.50% Q2 2022 Q3 2022 Q4 2022 5.17% 0.03% 5.14% 5.33% 0.02% + 109 bps Q2'23 vs Q2'22 Q1 2023 Q2 2023 Loan
Slide 19: Loan Production
Loan Production Net Loan Production Trend In millions 7.20% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Loan Production & Line changes Loan Amortization & payoffs New loans average coupon Loan Composition Trend W In millions $948 Jun-20 $1,595 12% 62% 26% Jun-23 • Residential real estate • Commercial re
Slide 20: Net Interest Margin
Net Interest Margin Net Interest Income/Margin <w In thousands (except ratios) _ Ml 3.37% 3.47% 3.27% 3.45% 3.45% $15,642 $16,774 $16,866 Q2 2022 Q3 2022 Q4 2022 Net Interest Income NIM 3.22% 3.22% $15,997 2.73% Q1 2023 Q2 2023 NIM excluding PPP Loans Interest-Earning Assets Mix (AVG) Commentary Net
Slide 21: Interest Rate Sensitivity
Interest Rate Sensitivity Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 5% Series 1 Point "1-2 yr Value: 81,355,318 (8%) Fixed Rate 38% 67% ■ Prime ■ CMT LIBOR/SOFR Loan Repricing Schedule Variable/Hybrid Rate Loans 33% 8% 13% 46% ■ 0-1 yrs. ■ 1-2 yrs. ■ 2-3 yrs ■ >3 yrs. Static NII Simul
Slide 22: 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 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.00% 0.00% 0.00% 0.03% 0.03% $468 $468 Non-accrual loans Non-per
Slide 23: 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 Commentary Total Loan balance at quarter end was $1,595 million (1). Commercial Real Estate (owner occupied and n
Slide 24: CRE Office Portfolio
CRE Office Portfolio Loan size 32$ 77 $46 25 $32 8 $41 7 $25 3 Outstanding Balance as of 6/30/2023 Number of Loans Key Metrics Avg. Loan Size in millions NCOS/Average Loans Delinquencies / Loans Nonaccruals/ Loans Classified Loans/Loans At 6/30/2023 $ 1.5 0.00% 0.00% 0.00% 0.00% Portfolio performing
Slide 25: 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 26: 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 27: Capital
Capital Capital Ratios <« Q22023 Leverage Ratio TCE/TA M Tier 1 Risk Based Capital Total Risk Based Capital AOCI In Millions 9.32% 8.25% 12.27% 13.42% ($47.1) Capitalized 9.36% 9.43% 5.00% 8.50% 8.93% NA 12.04% 12.65% 8.00% 13.20% 13.74% 10.00% ($42.1) ($36.9) Commentary Repurchased 77,603 shares du
Slide 28: Takeaways
Takeaways Leading franchise located in one of the most attractive Robust organic growth banking markets in Florida and the U.S. Strong asset quality, with minimal charge- offs experienced since 2015 recapitalization Experienced and tested management team Strong profitability, with pathway for future
Slide 29: APPENDIX – Risk Management
APPENDIX – Risk Management Risk Management Philosophy and Culture Management has instilled a culture of adherence to well-developed risk management procedures Management is responsible for day-to-day risk management (identifying, evaluating, and addressing potential risks that may exist at the enter
Slide 30: APPENDIX – Technology Support
APPENDIX – Technology Support 2016 2017 2018 2019 2020 2021 <=\ Paperless Account Opening January '16-April ‘16 ©Tran International Letter Of Credit April '16-July '16 m^Tonce - lnstant Issue Debit Card October '16 - March '17 <=\ Cash Management Portal August'16-March '17 Network In-housing January
Slide 31: APPENDIX – Technology Support
APPENDIX – Technology Support 2022 Sw 2023 2024 - 2025 r a M ANTI Remote Account Opening October 21-March 22 y Secureworks MXDR platform Feb 22 -July 22' r <$} abrigo k Loan origination system June 22-May 23 j r FèdNÇ-w k FED Now payments January 23 - October 23 s # PBX(SaaS)-Teams Calling 4 ■ Novem
Slide 32: APPENDIX – Yacht Lending Vertical
APPENDIX – Yacht Lending Vertical 2023 Boat Shows Tampa Boat Show Jun 23-25, 2023 Naples Boat Show Jan 19-22, 2023 Vero Beach Boat Show Nov 18-19, 2023 Palm Beach Boat Show Mar 21-24, 2023 Ft. Lauderdale Boat Show Oct 25-29, 2023 Miami Boat Show Feb 15-19, 2023 U.S. Century Bank Commentary Yacht fin
Slide 33: APPENDIX – Non-GAAP Reconciliation
APPENDIX – Non-GAAP Reconciliation In thousands (except ratios) 6/30/2023 Pre-Tax Pre-Provision ("PTPP") Income: Net income$4:196 Plus: Provision for income taxes 1:333 Plus: Provision for credit losses 3S_ PTPP income$5;567 PTPP Return on Average Assets: PTPP income$5:567 Average assets$2,183,542 P
Slide 34: 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$183:685 Less: Intangible assets - Tangible stockholders 'equity$183:685 Total shares issued and outstanding (at period-end): Total
Slide 35: Contact Information
CONTACT INFORMATION LOU DE LA AGUILERA Chairman, President & CEO (305) 715-5186 EH laguilera@uscentury.com ROB ANDERSON EVP, CHIEF FINANCIAL OFFICER (305) 715-5393 rob.anderson@uscentury.com INVESTOR RELATIONS InvestorRelations@uscentury.com 35
USCB Financial Holdings — Q2 2023 Earnings Presentation on 6ix