Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q1 2023 Earnings Presentation
23 slides from Uscb Financial's earnings presentation, Apr 27, 2023
Slide 1: Earnings Presentation First Quarter 2023
Exhibit 99.2 Exhibit 99.2 EARNINGS PRESENTATION FIRST QUARTER 2023 NASDAQ: USCB USBC 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: Q1 2023 Highlights
Q1 2023 HIGLIGHTS GROWTH Average deposits increased by $194.0 million or 11.8% compared to first quarter 2022. Average loans, excluding PPP loans, increased $370.0 million or 31.4% compared to first quarter 2022. Tangible Book Value per Share (1) was $9.37 includes an after-tax unrealized security l
Slide 4: Historical Financial
HISTORICAL FINANCIAL EOP for Balance Sheet amounts Loans (1) In millions $735 $1,580 Deposits In millions $782 $1,830 Total stockholders’ equity In millions $86 $184 ACL/Total Loans 1.17% 1.20% Net Charge off In thousands (1,019) (49) Nonperforming Assets/Total Assets 1.58% 0.02% Total Revenue In mi
Slide 5: Financial Results
FINANCIAL RESULTS Balance Sheet (EOP) In thousands (except per share data) Q1 2023 Q4 2022 Q1 2022 Total Securities $415,837 $418,839 $514,575 Total Loans (1) $1,580,394 $1,507,338 $1,258,388 Total Assets $2,163,821 $2,085,834 $1,967,252 Total Deposits $1,830,462 $1,829,281 $1,713,294 Total Equity (
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS CAPITAL/ CREDIT PROFITABILITY GROWTH Q1 2023 Q4 2022 Q1 2022 Tangible Common Equity/Tangible Assets(1) 8.50% 8.75% 9.76% Total Risk-Based Capital (2) 13.20% 13.65% 14.49% NCO/Avg Loans (3) (0.01%) (0.00%) (0.01%) NPA/Assets 0.02% 0.00% 0.00% Allowance Credit Losses/Loans 1
Slide 7: Liquidity
LIQUIDITY Total Liquidity 36% 29% 31% 30% 28% 30% 25% 22% 20% 19% Liquid Assets Total Liquidity Commentary We believe we are well positioned to weather the current environment. We have ample sources of liquidity both on and off-balance sheet. We are enrolled in BTFP but have not drawn. Total liquid
Slide 8: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,650 $1,717 $1,763 $1,804 $1,844 $223 $224 $217 $217 $225 $736 $781 $823 $871 $897 $65 $67 $67 $62 $58 $625 $645 $656 $654 $664 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Non-interest-bearing deposits Interest-bearing checking deposits Money market and savin
Slide 9: Deposit Distribution
DEPOSIT DISTRIBUTION EOP for Balance Sheet amounts Uninsured Deposits to Total Deposits Personal Business Public Funds 11% 35% 54% Deposits by Customer Segment In thousands for balance sheet amounts Deposit Type Total Balance % of Total (#) Accounts Average Balance per Account Business $ 985,380 54%
Slide 10: Loan Portfolio
LOAN PORTFOLIO Total Loans (AVG) In millions $1,211 $1,296 $1,399 $1,457 $1,547 $35 $18 $7 $1 $1 $1,176 $1,278 $1,392 $1,455 $1,546 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Loans (Exd PPP) PPP Loans Loan Yields 4.35% 4.35% 4.53% 4.86% 5.17% 0.28% 0.13% 0.03% 0.04% 0.03% 4.07% 4.22% 4.50% 4.82% 4.14%
Slide 11: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 4.02% 4.44% 4.85% 5.68% 6.66 $141 $74 $169 $56 $130 $71 $129 $54 $94 $22 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Loan Production/Lien changes Loan Amortization/payoffs New loans average coupon Commentary 2023 payoffs slowing with increase in inte
Slide 12: Loan Portfolio Mix
LOAN PORTFOLIO MIX Loan Portfolio Mix (1) Residential real estate -1- CRE - Owner occupied ! I ! CRE - Non-owner occupied Commercial and Industrial Correspondent banks Consumer and other 10% 6% 9% 12% 10% 53% $1,580MM Commentary Total Loan balance at quarter end was $1,580 million. Commercial Real E
Slide 13: CRE Office Portfolio
CRE OFFICE PORTFOLIO Loan size 77 $47 $31 Under SIMM SIMM - $3MM - $5MM _ $7MM - $3MM $5MM $7MM $10MM Outstanding Balance as of 3/31/2023 Number of Loans Key Metrics At 3/31/2023 Avg. Loan Size in millions $ 1.4 NCOs / Average Loans 0.00% Delinquencies / Loans 0.00% Nonaccruals / Loans 0.00% Classif
Slide 14: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.22% 1.16% 1.16% 1.16% 1.20% 1.20% 1.15% 1.16% 1.16% 1.20% $15,074 $15,786 $16,604 $17,487 $18,887 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Allowance for credit losses ACL/Total loans ACL/Total loans excluding PPP loans Commentar
Slide 15: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) Ql 2022 Q2 2022 Q3 2022 3.22% ^,1 3.45% 3.22% $16,866 $15,997 Q4 2022 Ql 2023 Net Interest Income A— NIM NIM excluding PPP Loans Interest-Earning Assets Mix (AVG) 5% 4% 4% 3% 2% 28% 26% 23% 22% 21% 2% 1% 0% 0% 0% 65% 69%
Slide 16: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 5% Fixed Rate 39% Variable Rate 56% 17% 16% 67% Prime CMT LIBOR/SOFRA Loan Repricing Schedule Variable/Hybrid Rate Loans 30% 10% 10% 50% yrs. 1-2 yrs. 2-3 yrs >3 yrs Static NII Simulation Year 1 & 2 100 200 100 200 -1
Slide 17: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Service fees $1,025 $1,093 $934 $1,083 $900 Gain (loss) on sale of securities available for sale (21) (1,989) (558) (3) 21 Gain on sale of loans held for sale 347 205 330 22 334 Loan settlement - - - - 161 Other
Slide 18: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Salaries and employee benefits $6,377 $6,080 $6,075 $5,913 $5,875 Occupancy 1,299 1,256 1,28 1 1,251 1,270 Regulatory assessments and fees 224 222 269 226 213 Consulting and legal fees 358 371 604 398 517 Netwo
Slide 19: Capital
CAPITAL capital Ratios w 1 Q12023 1 Leverage Ratio 9.36% TCE/TA <2> 8.50% Tier 1 Risk Based Capital 12.04% Total Risk Based Capital 13.20% AOCI In Millions ($42.1) 042022 9.61% 8.75% 12.53% 13.65% ($44.8) WpII- IIUH Capitalized 9.47% 5.00% 9.76% NA 13.35% 8.00% 14.49% 10.00% ($19.5) Commentary 500,0
Slide 20: 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 futur
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION In thousands (except ratios) 3/31/2023 Pre-Tax Pre-Provision (PTPP") Bicorne: Net income $ 5,809 Plus: Provision for income taxes 1,881 Plus: Provision for credit losses 201 PTPP income $ 7,891 PTPP Return ou Average Assets: PTPP income $ 7,891 Average assets $ 2,120,218 PTPP
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of and for the three months ended Tangible Book Value per Common Share (at period-end): 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Total stockholders' equity S 1S3,S5S S 1S2,42S S 177,417 S ISO,06$ S 192,039 Less: Intangi
Slide 23: Contact Information
CONTACT INFORMATION LOU DE LA AGUILERA President, CEO & Director (305) 715-5186 laguilera@uscentury.com ROB ANDERSON EVP, CHIEF FINANCIAL OFFICER (305) 715-5393 rob.anderson@uscentury.com INVESTOR RELATIONS InvestorRelations@uscentury.com 23
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