Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Investor Presentation (August 2022)
36 slides from Uscb Financial's investor presentation, Aug 1, 2022
Slide 1: U.S. Century Bank
1 Exhibit 99.1 U.S. CENTURY BANK
Slide 2: Forward-Looking Statements
2 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. The wor
Slide 3: Table of Contents
3 Table of Contents 1 Who We Are 2 Growth Strategy 3 Financial Review 4 Appendix Page 3 U.S. CENTURY BANK
Slide 4: We are a Relationship-First, Business Bank
4 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 6th largest Florida headquartered bank by deposits in Miami Dade County as of June 30, 2021. (1) Full service commercial bank offering products an
Slide 5: We Know Our Markets and Clients
5 We Know Our Markets and Clients Florida is one of the largest business markets in the country Ranked third in the United States in 2020 for the number of businesses employing fewer than 500 people, according to data from the U.S. Small Business Administrat ion’s Office of Advocacy for 2020 Approxi
Slide 6: We Know Our Markets and Clients: Household Income Growth
6 We Know Our Markets and Clients 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
Slide 7: Evolution of U.S. Century Bank
7 Evolution of U.S. Century Bank 1st Recapitalization 2014 – 2015 Entered into consent order with regulators in 2011 Significant deterioration in asset quality, capital, and financial performance at that time Recapitalization completed in March 2015 $65 million investment led by Patriot Financial Pa
Slide 8: Seasoned Management Team with Local Banking Experience
8 Seasoned Management Team with Local Banking Experience Management Team Luis de la Aguilera President, CEO & Director 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 Chi
Slide 9: We Are a Business Bank
9 We Are a Business Bank Commercial Banking Focused on servicing small/medium-sized businesses within branch footprint Offer relationship retail deposit products to owners and operators of SMBs Ability for customers to access accounts through online and mobile banking platforms Credit products inclu
Slide 10: Risk Management
10 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 enterprise, s
Slide 11: Achieving Our Profitability Targets: Technology Initiatives
11 Achieving Our Profitability Targets: Technology Initiatives 2016 2017 2018 2019 2020 2021 Paperless Account Opening lanuary '16- April '16 eTran International letter Of Credit April'16-luly '16 / Reporting Database May '16 - September '16 —— Instant Issue Debit Card ‘ -“■once October '16 - March
Slide 12: Table of Contents
12 Table of Contents 1 Who We are 2 Growth Strategy 3 Financial Review 4 Appendix Page 12 U.S. CENTURY BANK
Slide 13: Growth Strategies and Capital Deployment Opportunities
13 Growth Strategies and Capital Deployment Opportunities Organic Loan Growth: Take advantage of platform that we have developed post recap, capitalize on fragmented South Florida community banking market, and continue to build market share Capitalize on inherent advantages over smaller community ba
Slide 14: Table of Contents
14 Table of Contents 1 Who We are 2 Growth Strategy 3 Financial Review 4 Appendix Page 14 U.S. CENTURY BANK
Slide 15: Historical Financial Data
15 Historical Financial Data Total Loans (1) in Millions $735 $1,373 2016 2017 2018 2019 2020 2021 Q1 Q2 2022 2022 Total Deposits in millions $782 $1,739 2016 2017 2018 2019 2020 2021 Q1 Q2 2022 2022 Total Stockholders’ Equity in millions $86 $180 2016 2017 2018 2019 2020 2021 Q1 Q2 2022 2022 ACL/To
Slide 16: Q2 '22 Performance Update
16 Q2 ‘22 Performance Update Capital/ Credit Credit metrics remain pristine. There were no loans classified as nonperforming. ACL coverage ratio was 1.15%. Tangible Book Value per Share is at $9.00, down $0.60 from prior quarter primarily due to AOCI. No shares repurchased during the quarter; Board
Slide 17: Q2 '22 Performance Update
17 Q2 ‘22 Performance Update In thousands (except per share data) Q2 2022 Q1 2022 Q2 2021 Balance Sheet (EOP) Total Securities $456,135 $514,575 $395,804 Total Loans (1) $1,372,733 $1,258,388 $1,145,095 Total Assets $2,016,086 $1,967,252 $1,667,005 Total Deposits $1,738,720 $1,713,294 $1,438,776 Tot
Slide 18: Q2 '22 Performance Update
18 Q2 ‘22 Performance Update Q2 2022 Q1 2022 Q2 2021 Credit/Capital Tangible Common Equity/Tangible Assets(1) 8.93% 9.76% 8.50% Total Risk-Based Capital (2) 13.74% 14.49% 12.69% NCO/Avg Loans (3) 0.00% -0.01% 0.06% NPA/Assets 0.00% 0.00% 0.00% Allowance Credit Losses/Loans 1.15% 1.20% 1.30% Profitab
Slide 19: Loan Portfolio
19 Loan Portfolio Total Loans (AVG) in millions $1,300 $1,200 $1,100 $1,000 $900 $800 $1,088 $1,144 $1,159 $1,211 $1,296 $700 $99 $73 $51 $35 $18 $600 $989 $1,071 $1,108 $1,176 $1,278 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Loans (Exd PPP) PPP Loans Loan Yields 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.
Slide 20: Loan Portfolio Mix
20 Loan Portfolio Mix Loan Portfolio Mix Residential real estate CRE – Non-owner occupied CRE – Owner occupied Commerical and industrial Global Banking Consumer and other 8% 15% 51% 10% 10% 8% Commentary Total Loan balances at quarter end was $1.373 billion. Commercial Real Estate (owner occupied an
Slide 21: Loan Production
21 Loan Production Net Loan Production Trend in millions $180 $160 $140 $120 $100 $80 $60 $40 $20 $144 $104 $117 $88 $119 $106 $141 $74 $169 $56 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Loan Production/Line changes Loan Amortization/payoffs Commentary Q2 loan growth driven by increased production l
Slide 22: Paycheck Protection Program (PPP)
22 Paycheck Protection Program (PPP) 3 successful rounds of PPP loans, originating $168.4 million. Forgiveness of the last round of PPP loans is in process. SBA PPP Loans In thousands (except for ROAA) Q2 2022 Q1 2022 Q2 2021 Pre-Tax Income $7,003 $6,712 $5,316 Net Income $5,295 $4,854 $4,053 Averag
Slide 23: Deposit Portfolio
23 Deposit Portfolio Deposits (AVG) in millions $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $1,432 $1,477 $1,562 $1,650 $1,717 $400 $236 $229 $228 $223 $224 $200 $608 $628 $674 $736 $781 $0 $52 $55 $56 $56 $67 $5,536 $5,565 $5,604 $5,626 $5,645 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Non-int
Slide 24: Net Interest Margin
24 Net Interest Margin Net Interest Income/Margin (1) in thousands (exceptions) Net Interest Income NIM NIM excluding PPP Loans Interest-Earning Assets Mix (AVG) Total Loans (excluding PPP Loans) Investment Securities PPP Loans Cash Balance & Equivalents Commentary Net interest income increased by $
Slide 25: Interest Rate Sensitivity
25 Interest Rate Sensitivity Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 6% Variable Rate 53% Fixed Rate 41% 22% 18% 60% 22% Loan Repricing Schedule Variable/Hybrid Rate Loans 46% 37% 6% 11% 46% 0-4-1 yrs. 1-2 yrs. 2-4 yrs Static NII Simulation Year 1 & 2 $5,000 $4,000 $3,000 $2,000 3.3
Slide 26: Non-interest Income
26 Non-interest Income In thousands (except ratios) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Service fees $1,083 $900 $961 $856 $903 Gain (loss) on sale of securities available for sale (3) 21 35 (70) 187 Gain on sale of loans held for sale 22 334 107 532 23 Gain on sale of other assets - - 983 - - L
Slide 27: Non-interest Expense
27 Non-interest Expense In thousands (except ratios and FTE) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Salaries and employee benefits $5,913 $5,875 $5,634 $5,313 $5,213 Occupancy 1,251 1,270 1,267 1,192 1,411 Regulatory assessment and fees 226 213 93 317 195 Consulting and legal fees 398 517 539 357 3
Slide 28: Credit Risk Management Since 2015 Recapitalization
28 Following the 2015 Recapitalization, we undertook a complete reorganization of the Bank, starting with the replacement of the executive management team with individuals who brought with them larger -bank and public company expertise In 2015, Ben Pazos joined as Chief Credit Officer to lead and re
Slide 29: Capital
29 Capital Capital Ratios11*! Q2 2022 Leverage Ratio 9.43% TCE/TA{2) 8.93% Tier 1 Risk Based Capital 12.65% Total Risk Based Capital 13.74% Q1 2022 Q2 2021 Well- Capitalized 9.47% 7.91% 5.00% 9.76% 8.50% NA 13.35% 11.44% 8.00% 12.69% 10.00% 14.49% Commentary All capital ratios remain significantly a
Slide 30: Table of Contents
30 Table of Contents 1 Who We are 2 Growth Strategy 3 Financial Review 4 Appendix Page 30 U.S. CENTURY BANK
Slide 31: USCB Highlights
31 USCB Highlights U.S. CENTURY BANK Leading Franchise Located in One of the Most Attractive Banking Markets in Florida and the U.S. Experienced and Tested Management Team Robust Organic Balance Sheet Growth Low Risk, Commercially Oriented Loan Portfolio Strong Asset Quality, with Minimal Charge -of
Slide 32: Seasoned Management Team with Local Banking Experience
32 Seasoned Management Team with Local Banking Experience Name Title Years at USCB Prior Experience Luis de la Aguilera President, CEO & Director 6 Former President and CEO of TotalBank Served in management and loan production positions at Ocean Bank from 1989-2000 Served in business development and
Slide 33: Highly Accomplished and Aligned Board
33 Highly Accomplished and Aligned Board with Complementary Track Records Name Title Years at USCB Prior Experience Aida Levitan Chairwoman 8 Serves on the boards of the IMPAC Fund, Spanish Cultural Center of Miami, President of ArtesMiami, Inc. and Trustee Emertia of the Perez Art Museum Miami Form
Slide 34: Highly Accomplished and Aligned Board
34 Highly Accomplished and Aligned Board with Complementary Track Records Name Title Years at USCB Prior Experience Ramon A. Rodriguez Director Less than 1 Chairman and CEO of Cable Insurance, a property and casualty insurer dedicated to the commercial automotive market Former CEO of Madsen Sapp Men
Slide 35: Non-GAAP Reconciliation
35 Non-GAAP Reconciliation In thousands (except ratios) 6/30/2022 Pre-Tax Pre-Provis ion f TIPP") Income: Netincora?$5.295 Rus: Provision forincone taxes 1.708 Rus: Revision for credit losses 705 PIPP incone _S 7,708 PTPP Return on Average As sets: PIPP incone$7.708 Average assets$1,96S,3S1 PIPP ret
Slide 36: Non-GAAP Reconciliation
36 Non-GAAP Reconciliation In thousands (except per share data) In thousands (except per A. of i»d for ike ar»ao»a-. tided fl 1 6 30.2022 3 31 2022 12 3 1 2021 9 30 2021 6 30.2021 Ti agible Bock Va lie per Cor* noi Shire (it period-ead): loulclockholdcrc'eoas v (GA AP| S ISXObS s 192019 S 201 *9 7 s
USCB Financial Holdings — Investor Presentation (August 2022) on 6ix