USCB 8-K
Uscb Financial Holdings, Inc. (USCB)
8-K
2025-01-23
For: 2025-01-23
View Original
Added on
April 06, 2026
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM
__________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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of Incorporation)
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(IRS Employer
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,
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(Zip Code)
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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 2.02. Results of Operations and Financial Condition.
On January 23, 2025, USCB Financial Holdings, Inc. (the “Company”) issued a press release announcing its financial results
for the quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K
(“Form 8-K”) and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall
not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange
Act except as expressly set forth by specific reference in such filing to this Form 8-K.
Item 7.01. Regulation FD Disclosure.
As previously announced, at 11:00 a.m. ET on January 24, 2025, the Company will hold an earnings conference call to discuss
its financial performance for the quarter ended December 31, 2024. A copy of the slides forming the basis of the presentation is being
furnished as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference. A copy of the slides has also been posted to the
Company’s investor relations website, located at investors.uscenturybank.com.
The information in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of
Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by
reference into any filing under the Securities Act or the Exchange Act except as set forth by specific reference in such filing to this Form
8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
USCB Financial Holdings, Inc.
By:
/s/ Robert Anderson
Name:
Robert Anderson
Title:
Chief Financial Officer
Date: January 23, 2025
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Exhibit 99.1
EARNINGS RELEASE
USCB Financial Holdings, Inc. Reports Fully Diluted EPS of $0.34 for Q4 2024 and doubles the quarterly dividend
to $0.10 per share; ROAA of 1.08% and ROAE of 12.73%
MIAMI, FL – January 23, 2025 – USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB)
, the holding company for
U.S. Century Bank (the “Bank”), reported net income of $6.9 million or $0.34 per fully diluted share for the three months ended
December 31, 2024, compared with net income of $2.7 million or $0.14 per fully diluted share for the same period in 2023.
“The results in Q4 2024, highlight a record year for USCB. The team outperformed our internal budget and delivered impressive results
for our shareholders. A year ago, we posted $0.14 per share in diluted EPS in Q4 2023 and more than doubled those earnings this quarter
to $0.34 per share. Our continued focus on reducing deposit costs has contributed to the net interest margin (NIM) expansion, helping
us maintain solid profitability. While we did experience an increase in non-interest expense, primarily due to non-routine items, overall
profitability was consistent with the third quarter. Given the earnings power of the Company, outlook for 2025, and strong capital levels,
the board approved to double the quarterly cash dividend to $0.10 per share. For 2025, we remain focused on managing operating costs
efficiently to drive sustainable performance and delivering value to our shareholders.” said Luis de la Aguilera, Chairman, President,
and CEO.
Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended December 31,
2024 compared to at or for the quarter ended December 31, 2023 and annualized where appropriate.
Profitability
•
Annualized return on average assets for the quarter ended December 31, 2024 was 1.08% compared to 0.48% for the fourth quarter
of 2023.
•
Annualized return on average stockholders’ equity for the quarter ended December 31, 2024 was 12.73% compared to 5.88% for
the fourth quarter of 2023.
•
The efficiency ratio for the quarter ended December 31, 2024 was 55.92% compared to 68.27% for the fourth quarter of 2023.
•
Net interest margin for the quarter ended December 31, 2024 was 3.16% compared to 2.65% for the fourth quarter of 2023.
•
Net interest income before provision for credit losses was $19.4 million for the quarter ended December 31, 2024, an increase of
$5.0 million or 34.7% compared to the fourth quarter of 2023.
Balance Sheet
•
Total assets were $2.6 billion at December 31, 2024, representing an increase of $242.1 million or 10.4% from $2.3 billion at
December 31, 2023.
•
Total loans held for investment were $2.0 billion at December 31, 2024, representing an increase of $192.0 million or 10.8% from
$1.8 billion at December 31, 2023.
•
Total deposits were $2.2 billion at December 31, 2024, representing an increase of $236.9 million or 12.2% from $1.9 billion at
December 31, 2023.
•
Total stockholders’ equity was $215.4 million at December 31, 2024, representing an increase of $23.4 million or 12.2% from
$192.0 million at December 31, 2023. Total stockholders’ equity included accumulated comprehensive loss of $44.5 million at
December 31, 2024 compared to accumulated comprehensive loss of $44.3 million at December 31, 2023.
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Asset Quality
•
The allowance for credit losses (“ACL”) increased by $3.0 million to $24.1 million at December 31, 2024 from $21.1 million at
December 31, 2023.
•
The ACL represented 1.22% of total loans at December 31, 2024 and 1.18% at December 31, 2023.
•
The provision for credit loss was $1.0 million for the quarter ended December 31, 2024, a decrease of $445 thousand compared to
the fourth quarter of 2023.
•
Non-performing loans to total loans was 0.14% at December 31, 2024 and 0.03% at December 31, 2023. Nonperforming loans
totaled $2.7 million at December 31, 2024 and $468 thousand at December 31, 2023.
Non-interest Income and Non-interest Expense
•
Non-interest income was $3.6 million for the three months ended December 31, 2024, an increase of $2.3 million or 173.5%
compared to $1.3 million for the same period in 2023.
•
Non-interest expense was $12.9 million for the three months ended December 31, 2024, an increase of $2.1 million or 19.9%
compared to $10.7 million for the same period in 2023.
•
Non-interest expense for the three months ended December 31, 2024, increased $1.4 million compared to the three months ended
September 30, 2024 due to routine increases of $362 thousand and non-routine increases of $1.0 million. Routine increases for the
fourth quarter 2024 were: $110 thousand increase to salaries and employee benefits due to merit increases and higher replacement
cost of personnel, $218 thousand increase in consulting and legal fees due to timing of billings throughout the year, and $104
thousand increase in other operating expense. Occupancy, regulatory assessment and fees, and network and information technology
had a net decrease of $70 thousand. Non-routine increases for the fourth quarter 2024 were: $620 thousand in salaries and employee
benefits due to restricted stock award expense (a shorter initial vesting period; annual expense was recognized in two months), $173
thousand in legal expenses for various items which the Company expects to be reimbursed in coming quarters, $174 thousand
increase in other operating expenses due to forced placed-insurance expense related to borrowers which the Company expects to be
reimbursed in coming quarters, and $71 thousand due to excise tax related to the Company’s stock repurchases pursuant to its
previously announced stock repurchase programs. Non-routine expenses had an impact of ($0.04) on diluted EPS for the fourth
quarter 2024.
Capital
•
On January 21, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share of the Company’s
Class A common stock. The dividend will be paid on March 5, 2025 to shareholders of record at the close of business on February
14, 2025.
•
As of December 31, 2024,
total risk-based capital ratios for the Company and the Bank were 13.51% and 13.34%, respectively.
•
Tangible book value per common share (a non-GAAP measure) was $10.81 at December 31, 2024, representing increase of $1.00
or 10.2% from $9.81 at December 31, 2023. At December 31, 2024, tangible book value per common share was negatively affected
by ($2.24) per share due to an accumulated comprehensive loss of $44.5 million due to changes in the market value of our available
for sale securities during the fourth quarter. At December 31, 2023, tangible book value per common share was negatively affected
by ($2.26) per share due to an accumulated comprehensive loss of $44.3 million.
Conference Call and Webcast
The Company will host a conference call on Friday, January 24, 2025, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited
financial results for the quarter ended December 31, 2024. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to
join the USCB Financial Holdings Call.
Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website
at www.uscentury.com . An archived version of the webcast will be available in the same location shortly after the live call has ended.
About USCB Financial Holdings, Inc.
USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of
the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century
Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide
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range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of
Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking
center near you, please call (305) 715-5200 or visit www.uscentury.com.
Forward-Looking Statements
This earnings release 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-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “should,” “would,”
“believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “seek,”“continue,” and “intend,”, the negative of these terms, as well as
other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements
include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s
long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition
from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance
sheet restructuring.
These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from
those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:
•
the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
•
our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
•
the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and
deferred tax asset valuation allowance;
•
the efficiency and effectiveness of our internal control procedures and processes;
•
our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where
we operate;
•
adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
•
deposit attrition and the level of our uninsured deposits;
•
legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going
effects of the implementation of the Current Expected Credit Losses (“CECL”) standard;
•
the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of
geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular,
commercial real estate;
•
the effects of climate change;
•
the concentration of ownership of our common stock;
•
fluctuations in the price of our common stock;
•
our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well
as growth through other means, such as future acquisitions;
•
inflation, interest rate, unemployment rate, and market and monetary fluctuations;
•
impacts of international hostilities and geopolitical events;
•
increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest
margin;
•
the loss of key employees;
•
the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or
third-party fraud and security breaches; and
•
other risks described in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”).
All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will
not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements.
Further, forward-looking statements included in this earnings release are made only as of the date hereof, and we undertake no obligation
to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statements are made or
to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the
risk factors described in the reports the Company filed or will file with the SEC.
Non-GAAP Financial Measures
This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting
principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-
GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s
operations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s
business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be
viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not
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necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the
exhibits to this earnings release.
All numbers included in this press release are unaudited unless otherwise noted.
Contacts:
Investor Relations
Media Relations
Martha Guerra-Kattou
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USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Interest income:
Loans, including fees
$
30,757
$
24,803
$
115,236
$
87,884
Investment securities
2,846
2,511
11,480
10,012
Interest-bearing deposits in financial institutions
564
662
4,517
3,121
Total interest income
34,167
27,976
131,233
101,017
Interest expense:
Interest-bearing checking deposits
338
327
1,509
901
Savings and money market accounts
9,569
9,126
40,098
29,658
Time deposits
3,447
2,733
13,354
8,500
FHLB advances and other borrowings
1,455
1,414
6,336
3,390
Total interest expense
14,809
13,600
61,297
42,449
Net interest income before provision for credit losses
19,358
14,376
69,936
58,568
Provision for credit losses
1,030
1,475
3,157
2,367
Net interest income after provision for credit losses
18,328
12,901
66,779
56,201
Non-interest income:
Service fees
2,667
1,348
8,839
5,055
Gain (loss) on sale of securities available for sale, net
-
(883)
14
(1,859)
Gain on sale of loans held for sale, net
154
105
747
801
Other non-interest income
806
756
3,140
3,406
Total non-interest income
3,627
1,326
12,740
7,403
Non-interest expense:
Salaries and employee benefits
7,930
6,104
28,793
24,429
Occupancy
1,337
1,262
5,258
5,230
Regulatory assessments and fees
405
412
1,766
1,453
Consulting and legal fees
552
642
1,568
1,899
Network and information technology services
494
552
1,993
2,016
Other operating expense
2,136
1,747
7,664
6,781
Total non-interest expense
12,854
10,719
47,042
41,808
Net income before income tax expense
9,101
3,508
32,477
21,796
Income tax expense
2,197
787
7,803
5,251
Net income
$
6,904
$
2,721
$
24,674
$
16,545
Per share information:
Net income per common share, basic
$
0.35
$
0.14
$
1.25
$
0.84
Net income per common share, diluted
$
0.34
$
0.14
$
1.24
$
0.84
Cash dividends declared
$
0.05
$
-
$
0.20
$
-
Weighted average shares outstanding:
Common shares, basic
19,795,589
19,503,043
19,675,444
19,621,698
Common shares, diluted
20,183,731
19,573,350
19,831,421
19,687,634
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USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Income statement data:
Net interest income
$
19,358
$
18,109
$
17,311
$
15,158
$
14,376
Provision for credit losses
1,030
931
786
410
1,475
Net interest income after provision for credit losses
18,328
17,178
16,525
14,748
12,901
Service fees
2,667
2,544
1,977
1,651
1,348
Gain (loss) on sale of securities available for sale, net
-
-
14
-
(883)
Gain on sale of loans held for sale, net
154
109
417
67
105
Other income
806
785
803
746
756
Total non-interest income
3,627
3,438
3,211
2,464
1,326
Salaries and employee benefits
7,930
7,200
7,353
6,310
6,104
Occupancy
1,337
1,341
1,266
1,314
1,262
Regulatory assessments and fees
405
452
476
433
412
Consulting and legal fees
552
161
263
592
642
Network and information technology services
494
513
479
507
552
Other operating expense
2,136
1,787
1,723
2,018
1,747
Total non-interest expense
12,854
11,454
11,560
11,174
10,719
Net income before income tax expense
9,101
9,162
8,176
6,038
3,508
Income tax expense
2,197
2,213
1,967
1,426
787
Net income
$
6,904
$
6,949
$
6,209
$
4,612
$
2,721
Per share information:
Net income per common share, basic
$
0.35
$
0.35
$
0.32
$
0.23
$
0.14
Net income per common share, diluted
$
0.34
$
0.35
$
0.31
$
0.23
$
0.14
Cash dividends declared
$
0.05
$
0.05
$
0.05
$
0.05
$
-
Balance sheet data (at period-end):
Cash and cash equivalents
$
77,035
$
38,486
$
77,261
$
126,546
$
41,062
Securities available-for-sale
$
260,221
$
259,527
$
236,444
$
259,992
$
229,329
Securities held-to-maturity
$
164,694
$
167,001
$
169,606
$
173,038
$
174,974
Total securities
$
424,915
$
426,528
$
406,050
$
433,030
$
404,303
Loans held for investment
(1)
$
1,972,848
$
1,931,362
$
1,869,249
$
1,821,196
$
1,780,827
Allowance for credit losses
$
(24,070)
$
(23,067)
$
(22,230)
$
(21,454)
$
(21,084)
Total assets
$
2,581,216
$
2,503,954
$
2,458,270
$
2,489,142
$
2,339,093
Non-interest-bearing demand deposits
$
575,159
$
637,313
$
579,243
$
576,626
$
552,762
Interest-bearing deposits
$
1,598,845
$
1,489,304
$
1,477,459
$
1,526,168
$
1,384,377
Total deposits
$
2,174,004
$
2,126,617
$
2,056,702
$
2,102,794
$
1,937,139
FHLB advances and other borrowings
$
163,000
$
118,000
$
162,000
$
162,000
$
183,000
Total liabilities
$
2,365,828
$
2,290,038
$
2,257,250
$
2,294,131
$
2,147,125
Total stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Capital ratios:
(2)
Leverage ratio
9.53%
9.34%
9.03%
8.91%
9.28%
Common equity tier 1 capital
12.28%
12.01%
11.93%
11.80%
11.62%
Tier 1 risk-based capital
12.28%
12.01%
11.93%
11.80%
11.62%
Total risk-based capital
13.51%
13.22%
13.12%
12.98%
12.78%
(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company's regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject
to regulatory capital requirements. The Bank's total risk-based capital for fourth quarter 2024 was 13.34%.
7
USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Average balance sheet data:
Cash and cash equivalents
$
56,937
$
87,937
$
107,831
$
132,266
$
57,069
Securities available-for-sale
$
255,786
$
244,882
$
263,345
$
239,896
$
215,649
Securities held-to-maturity
$
165,831
$
168,632
$
171,682
$
174,142
$
181,151
Total securities
$
421,617
$
413,514
$
435,027
$
414,038
$
396,800
Loans held for investment
(1)
$
1,958,566
$
1,878,230
$
1,828,487
$
1,781,528
$
1,698,611
Total assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
Interest-bearing deposits
$
1,547,789
$
1,468,067
$
1,473,513
$
1,473,831
$
1,336,470
Non-interest-bearing demand deposits
$
590,829
$
609,456
$
610,370
$
574,760
$
577,133
Total deposits
$
2,138,618
$
2,077,523
$
2,083,883
$
2,048,591
$
1,913,603
FHLB advances and other borrowings
$
151,804
$
156,043
$
162,000
$
164,187
$
139,000
Total liabilities
$
2,328,877
$
2,278,793
$
2,281,467
$
2,243,011
$
2,085,182
Total stockholders' equity
$
215,715
$
206,641
$
197,755
$
193,092
$
183,629
Performance ratios:
Return on average assets
(2)
1.08%
1.11%
1.01%
0.76%
0.48%
Return on average equity
(2)
12.73%
13.38%
12.63%
9.61%
5.88%
Net interest margin
(2)
3.16%
3.03%
2.94%
2.62%
2.65%
Non-interest income to average assets
(2)
0.57%
0.55%
0.52%
0.41%
0.23%
Non-interest expense to average assets
(2)
2.01%
1.83%
1.88%
1.84%
1.87%
Efficiency ratio
(3)
55.92%
53.16%
56.33%
63.41%
68.27%
Loans by type (at period end):
(4)
Residential real estate
$
297,979
$
283,477
$
256,807
$
237,906
$
204,419
Commercial real estate
$
1,128,399
$
1,095,112
$
1,053,030
$
1,057,800
$
1,047,593
Commercial and industrial
$
258,311
$
246,539
$
248,525
$
228,045
$
219,757
Correspondent banks
$
82,438
$
103,815
$
112,510
$
100,182
$
114,945
Consumer and other
$
198,091
$
198,604
$
194,644
$
194,325
$
191,930
Asset quality data:
Allowance for credit losses to total loans
1.22%
1.19%
1.19%
1.18%
1.18%
Allowance for credit losses to non-performing loans
889%
846%
2,933%
4,705%
4,505%
Total non-performing loans
(5)
$
2,707
$
2,725
$
758
$
456
$
468
Non-performing loans to total loans
0.14%
0.14%
0.04%
0.03%
0.03%
Non-performing assets to total assets
(5)
0.10%
0.11%
0.03%
0.02%
0.02%
Net charge-offs (recoveries of) to average loans
(2)
0.00%
(0.00)%
(0.00)%
(0.00)%
(0.00)%
Net charge-offs (recovery) of credit losses
$
(11)
$
(6)
$
(2)
$
(7)
$
(3)
Interest rates and yields:
(2)
Loans held for investment
6.25%
6.32%
6.16%
6.01%
5.79%
Investment securities
2.63%
2.61%
2.80%
2.69%
2.46%
Total interest-earning assets
5.57%
5.61%
5.54%
5.34%
5.16%
Deposits
(6)
2.48%
2.66%
2.64%
2.76%
2.53%
FHLB advances and other borrowings
3.81%
4.05%
4.03%
4.10%
4.04%
Total interest-bearing liabilities
3.47%
3.79%
3.76%
3.86%
3.66%
Other information:
Full-time equivalent employees
199
198
197
199
196
(1) Loan amounts include deferred fees/costs.
(2) Annualized.
(3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
(4) Loan amounts exclude deferred fees/costs.
(5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there was no other real estate owned (OREO)
recorded.
(6) Reflects effect of non-interest-bearing deposits.
8
USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)
Three Months Ended December 31,
2024
2023
Average
Balance
Interest
Yield/Rate
(1)
Average
Balance
Interest
Yield/Rate
(1)
Assets
Interest-earning assets:
Loans held for investment
(2)
$
1,958,566
$
30,757
6.25%
$
1,698,611
$
24,803
5.79%
Investment securities
(3)
430,465
2,846
2.63%
404,850
2,511
2.46%
Other interest-earning assets
49,561
564
4.53%
49,583
662
5.30%
Total interest-earning assets
2,438,592
34,167
5.57%
2,153,044
27,976
5.16%
Non-interest-earning assets
106,000
115,767
Total assets
$
2,544,592
$
2,268,811
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing checking deposits
$
51,033
338
2.63%
$
49,675
327
2.61%
Saving and money market deposits
1,155,776
9,569
3.29%
1,004,805
9,126
3.60%
Time deposits
340,980
3,447
4.02%
281,990
2,733
3.85%
Total interest-bearing deposits
1,547,789
13,354
3.43%
1,336,470
12,186
3.62%
FHLB advances and other borrowings
151,804
1,455
3.81%
139,000
1,414
4.04%
Total interest-bearing liabilities
1,699,593
14,809
3.47%
1,475,470
13,600
3.66%
Non-interest-bearing demand deposits
590,829
577,133
Other non-interest-bearing liabilities
38,455
32,579
Total liabilities
2,328,877
2,085,182
Stockholders' equity
215,715
183,629
Total liabilities and stockholders' equity
$
2,544,592
$
2,268,811
Net interest income
$
19,358
$
14,376
Net interest spread
(4)
2.10%
1.50%
Net interest margin
(5)
3.16%
2.65%
(1) Annualized.
(2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
(3) At fair value except for securities held to maturity. This amount includes FHLB stock.
(4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities.
(5) Net interest margin is the ratio of net interest income to total interest-earning assets.
9
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Pre-tax pre-provision ("PTPP") income:
(1)
Net income
$
6,904
$
6,949
$
6,209
$
4,612
$
2,721
Plus: Provision for income taxes
2,197
2,213
1,967
1,426
787
Plus: Provision for credit losses
1,030
931
786
410
1,475
PTPP income
$
10,131
$
10,093
$
8,962
$
6,448
$
4,983
PTPP return on average assets:
(1)
PTPP income
$
10,131
$
10,093
$
8,962
$
6,448
$
4,983
Average assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
PTPP return on average assets
(2)
1.58%
1.62%
1.45%
1.06%
0.87%
Operating net income:
(1)
Net income
$
6,904
$
6,949
$
6,209
$
4,612
$
2,721
Less: Net gains (losses) on sale of securities
-
-
14
-
(883)
Less: Tax effect on sale of securities
-
-
(4)
-
224
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Operating PTPP income:
(1)
PTPP income
$
10,131
$
10,093
$
8,962
$
6,448
$
4,983
Less: Net gains (losses) on sale of securities
-
-
14
-
(883)
Operating PTPP income
$
10,131
$
10,093
$
8,948
$
6,448
$
5,866
Operating PTPP return on average assets:
(1)
Operating PTPP income
$
10,131
$
10,093
$
8,948
$
6,448
$
5,866
Average assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
Operating PTPP return on average assets
(2)
1.58%
1.62%
1.45%
1.06%
1.03%
Operating return on average assets:
(1)
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Average assets
$
2,544,592
$
2,485,434
$
2,479,222
$
2,436,103
$
2,268,811
Operating return on average assets
(2)
1.08%
1.11%
1.01%
0.76%
0.59%
Operating return on average equity:
(1)
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Average equity
$
215,715
$
206,641
$
197,755
$
193,092
$
183,629
Operating return on average equity
(2)
12.73%
13.38%
12.61%
9.61%
7.30%
Operating Revenue:
(1)
$
19,358
$
18,109
$
17,311
$
15,158
$
14,376
3,627
3,438
3,211
2,464
1,326
-
-
14
-
(883)
$
22,985
$
21,547
$
20,508
$
17,622
$
16,585
Operating Efficiency Ratio:
(1)
$
12,854
$
11,454
$
11,560
$
11,174
$
10,719
$
22,985
$
21,547
$
20,508
$
17,622
$
16,585
55.92%
53.16%
56.37%
63.41%
64.63%
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Annualized.
10
USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)
As of or For the Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Tangible book value per common share (at period-end):
(1)
Total stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Less: Intangible assets
-
-
-
-
-
Tangible stockholders' equity
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding
19,924,632
19,620,632
19,630,632
19,650,463
19,575,435
Tangible book value per common share
(2)
$
10.81
$
10.90
$
10.24
$
9.92
$
9.81
Operating diluted net income per common share:
(1)
Operating net income
$
6,904
$
6,949
$
6,199
$
4,612
$
3,380
Total weighted average diluted shares of common stock
20,183,731
19,825,211
19,717,167
19,698,258
19,573,350
Operating diluted net income per common share:
$
0.34
$
0.35
0.31
0.23
0.17
Tangible Common Equity/Tangible Assets
(1)
$
215,388
$
213,916
$
201,020
$
195,011
$
191,968
(3)
$
2,581,216
2,503,954
2,458,270
2,489,142
2,339,093
Tangible Common Equity/Tangible Assets
8.34%
8.54%
8.18%
7.83%
8.21%
(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.
(3) Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAA
P.
Exhibit 99.2
EARNINGS PRESENTATION FOURTH QUARTER 2024 NASDAQ: USCB USCB FINANCIAL HOLDINGS U.S. CENTURY BANK
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-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “ should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “continue,” “seek,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring. These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry; the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance; the efficiency and effectiveness of our internal control procedures and processes; our ability to comply with the extensive laws and regulations to
which we are subject, including the laws for each jurisdiction where we operate; adverse changes or conditions in the capital and financial markets, including actual or potential stresses in the banking industry; deposit attrition and the level of our uninsured deposits; legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the implementation of the Current Expected Credit Losses (“CECL”) standard; the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate; the effects of climate change; the concentration of ownership of our common stock; fluctuations in the price of our common stock; our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions; inflation, interest rate, unemployment rate, and market and monetary fluctuations; impacts of international hostilities and geopolitical events; increased competition and its effect on the pricing of our products and services as well as our net interest rate spread and net interest margin; the loss of key employees; the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and other risks described in this presentation and other filings we make with the Securities and Exchange Commission (“SEC”). All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-
looking statements. Further, forward-looking statements included in this presentation are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports USCB Financial Holdings, Inc. filed or will file with the SEC. Non-GAAP Financial Measures This presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP financial measures because it believes these measures may provide useful supplemental information for evaluating the Company’s expectations and underly ing performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the Non-GAAP financial measures reconciliation tables included in this presentation. All numbers included in this presentation are unaudited unless otherwise noted. 2
Q4 2024 HIGHLIGHTS GROWTH Average deposits increased by $225.0 million or 11.8% compared to the fourth quarter 2023. Average loans increased $260.0 million or 15.3% compared to the fourth quarter 2023. Liquidity sources as of December 31, 2024, aggregated $679 million in on-balance sheet and off-balance sheet sources. Tangible book value per common share (a non-GAAP measure) (1) on December 31, 2024, was $10.81, which included an AOCI impact of ($2.24), increased $1.0 or 10.2% from $9.81 on December 31, 2023, which included an AOCI impact of ($2.26). PROFITABILITY Net income was $6.9 million or $0.34 per diluted share, an increase of $4.2 million or 153.7% compared to the fourth quarter 2023. Net interest income before provision increased $5.0 million or 34.7% for the quarter compared to the fourth quarter 2023. Non-interest expense increased $2.1 million or 19.9% for the quarter compared to the fourth quarter 2023. Non-routine non-interest expenses accounted for $1.0 million which had an impact of ($0.04) on diluted EPS. ROAA was 1.08% in the fourth quarter 2024 compared to 0.48% for the fourth quarter 2023. ROAE was 12.73% in the fourth quarter 2024 compared to 5.88% for the fourth quarter 2023. CAPITAL/ CREDIT The Company’s Board of Directors doubled the quarterly cash dividend and declared a $0.10 per share of the Company’s Class A common stock dividend on January 21, 2025. The dividend will be paid on March 5, 2025, to shareholders of record at the close of business on February 14, 2025. At December 31, 2024, nonaccrual loans totaled $2.7 million. ACL coverage ratio was 1.22% at December 31, 2024, and 1.18% at December 31, 2023. Total stockholders' equity increased by $23.4 million or 12.2% compared to December 31, 2023. (1) Non-GAAP financial measure. See reconciliation in this presentation. 3
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans (1) In millions $735 $1,973 2016 2017 2018 2019 2020 2021 2022 2023 2024 Deposits In millions $782 $2,174 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total stockholders' equity In millions $86 $215 2016 2017 2018 2019 2020 2021 2022 2023 2024 ACL/Total Loans (2) 1.17% 1.22% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net charge-offs ($1,019) ($26) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Nonperforming Assets/Total Assets 1.58% 0.10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Interest Income In millions $30 $70 2016 2017 2018 2019 2020 2021 2022 2023 2024 Efficiency ratio 94.15% 55.92% 2016 2017 2018 2019 2020 2021 2022 2023 2024 PTPP ROAA (3) 0.24% 1.58% 2016 2017 2018 2019 2020 2021 2022 2023 2024 (1) Loan amounts include deferred fees/costs. (2) ACL was calculated under the CECL standard methodology for all periods beginning January 1, 2023, and the incurred loss methodology for all periods before. (3) Non-GAAP financial measure. See reconciliation in this presentation. 4
FINANCIAL RESULTS In thousands (except per share data) Q4 2024 Q3 2024 Q4 2023 Balance Sheet (EOP) Total Securities $424,915 $426,528 $404,303 Total Loans (1) $1,972,848 $1,931,362 $1,780,827 Total Assets $2,581,216 $2,503,954 $2,339,093 Total Deposits $2,174,004 $2,126,617 $1,937,139 Total Equity (2) $215,388 $213,916 $191,968 Income Statement Net Interest Income $19,358 $18,109 $14,376 Non-Interest Income $3,627 $3,438 $1,326 Total Revenue (3) $22,985 $21,547 $15,702 Provision for Credit Losses $1,030 $931 $1,475 Non -Interest Expense $12,854 $11,454 $10,719 Net Income $6,904 $6,949 $2,721 Diluted Earning Per Share (EPS) $0.34 $0.35 $0.14 Weighted Average Diluted Shares 20,183,731 19,825,211 19,573,350 (1) Loan amounts include deferred fees/costs. (2) Total Equity includes accumulated comprehensive loss of $44.5 million for Q4 2024, $38.0 million for Q3 2024, and $44.3 million for Q4 2023. (3) Equals net interest income plus non-interest income. 5
KEY PERFORMANCE INDICATORS Q4 2024 Q3 2024 Q4 2023 In thousands (except for TBV/share) GROWTH Total Assets (EOP) $2,581,216 $2,503,954 $2,339,093 Total Loans (EOP) $1,972,848 $1,931,362 $1,780,827 Total Deposits (EOP) $2,174,004 $2,126,617 $1,937,139 Tangible Book Value/Share (1)(2) $10.81 $10.90 $9.81 PROFITABILITY Return On Average Assets (ROAA) (3) 1.08% 1.11% 0.48% Return On Average Equity (ROAE) (3) 12.73% 13.38% 5.88% Net Interest Margin (3) 3.16% 3.03% 2.65% Efficiency Ratio 55.92% 53.16% 68.27% Non -Interest Expense/Avg. Assets (3) 2.01% 1.83% 1.87% CAPITAL/CREDIT Tangible Common Equity/Tangible Assets (1) 8.34% 8.54% 8.21% Total Risk-Based Capital (4) 13.51% 13.22% 12.78% NCO/Avg Loans (3) 0.00% 0.00% 0.00% NPA/Assets 0.10% 0.11% 0.02% Allowance for Credit Losses/Loans 1.22% 1.19% 1.18% (1) Non-GAAP financial measures. See reconciliation in this presentation. (2) AOCI effect on tangible book value per share was ($2.24) for Q4 2024, ($1.94) for Q3 2024 and ($2.26) for Q4 2023. (3) Annualized. (4) Reflects the Company's regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. 6
DEPOSIT PORTFOLIO Deposits AVG In millions $1,914 $2,049 $2,083 $2,078 $2,139 $282 $323 $316 $326 $341 $1,005 $1,098 $1,101 $1,085 $1,156 $50 $53 $56 $58 $51 $577 $575 $610 $609 $591 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Non-interest -bearing deposits Interest-bearing checking deposits Money market and savings Time deposits Deposit Cost (1) 5.50% 5.50% 5.50% 5.00% 4.50% 2.53% 2.76% 2.64% 2.66% 2.48% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Deposit Cost Fed Funds Rate (upper bound) Commentary Average deposits increased $61.1 million or 11.7% annualized compared to the prior quarter and increased $225.0 million or 11.8% compared to the fourth quarter 2023. DDA was 27.6% of total average deposits. The quarterly average cost of total deposits decreased 18 bps compared to the prior quarter and 5 bps compared to the fourth quarter 2023. (1) Reflects effect of non-interest-bearing deposits. 7
LOAN PORTFOLIO Total Loans (AVG) In millions $1,699 $1,782 $1,828 $1,878 $1,959 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Loan Yields 5.79% 6.01% 6.16% 6.32% 6.25% "46 bps Q4'23 vs Q4'24" Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Commentary Average loans increased $80.3 million or 17.0% annualized compared to prior quarter and $260.0 million or 15.3% compared to the fourth quarter 2023. Loan yield decreased 7 bps compared to the prior quarter and increased 46 bps compared to the fourth quarter 2023. 8
LOAN PRODUCTION Net Loan Production Trend In millions 8.00% 8.16% 8.01% 7.75% 7.14% $150 $46 $131 $91 $155 $108 $157 $95 $161 $123 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Loan production/Line changes Loan Amortization/payoffs New loans weighted average coupon Loan Composition Trend EOP (1) In millions $948 $1,965 28% 15% 63% 58% 9% 27% Jun -20 Dec -24 Residential real estate Commercial real estate Real Estate Loans Commercial and industrial, Correspondent banks, and Consumer and other (1) Excludes deferred fees/cost. Commentary $161.3 million in new loan production in the fourth quarter 2024. Weighted average coupon on new loans was 7.14% for fourth quarter 2024, 89 bps above portfolio weighted average yield. Loan composition shift from real estate loans to non-CRE loans further diversifies our loan portfolio. 9
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 2.65% 2.62% 2.94% 3.03% 3.16% $14,376 $15,158 $17,311 $18,109 $9,358 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net interest income NIM Interest-Earning Assets Mix (AVG) 2% 5% 4% 3% 2% 19% 18% 19% 18% 18% 79% 77% 77% 79% 80% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Total Loans Investment Securities Cash Balances & Equivalents Commentary Net interest income increased $1.2 million or 27.4% annualized compared to prior quarter and $5.0 million or 34.7% compared to the fourth quarter 2023. Net interest margin increased 13 bps compared to prior quarter and 51 bps compared to fourth quarter 2023. NIM drivers: Proactive deposit cost reduction initiatives. Interest-earning asset mix improved. (1) Annualized. 10
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM 3% Fixed Rate 41 % Variable Rate 56% 28% 10% 62% Prime CMT SQFR Loan Repricing Schedule Variable/Hybrid Rate Loans 24% 41% 12% 23% yrs. 1-2 yrs. 2-3 yrs. >3 yrs. Static NII Simulation Year 1 & 2 -100 -1.2$ 0.6% +100 -100 -4.6% 3.3% +100 Net interest income changes from base ($ in thousands and % change) 11
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.18% 1.18% 1.19% 1.19% 1.22% $21,084 $21,454 $22,230 $23,067 $24,070 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.03% 0.03% 0.04% 0.14% 0.14% $468 $456 $758 $2,725 $2,707 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Non-accrual loans Non-performing loans to total loans Commentary Allowance for credit losses increased $1.0 million compared to prior quarter and $3.0 million compared to fourth quarter 2023. ACL coverage ratio was at 1.22% as of December 31, 2024. One C&I loan for $403 thousand, two consumer loans totaling $2.0 million, and one residential real estate loan for $314 thousand were classified as nonaccrual as of December 31, 2024. Classified Loans (1) to Total Loans 0.53% 0.44% 0.45% 0.39% 0.37% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (1) Loans classified as substandard at period end. No loans classified doubtful at any of the dates presented. 12
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 10% 15% 10% 48% 13% 4% $1,965 MM(1) Commentary Total loan balance at quarter end was $1,965 million (1). Commercial Real Estate (owner occupied and non-owner occupied) was 57% or $1,128 million of the total loan portfolio(1). CRE mix is diversified and granular. Retail non-owner occupied makes up 27% of total CRE or $305.0 million. CRE Loan Mix Land/Construction 3% Other 3% Retail 27% Multifamily 18% CRE - Owner Occupied 18% Office 10% Warehouse 12% Hotels 9% $1,128MM As of 12/31/24 Excludes deferred fees/cost Includes loan types: office, warehouse, retail, and other CRE Loan Portfolio (non-owner occupied and owner occupied) Weighted Average Loan Type Outstanding Balance (1) LTV (2) DSCR (3) Average Loan Size (1) Retail $326 56% 1.59 $3.0 Multifamily $204 56% 1.34 $1.7 Office $184 56% 1.85 $1.5 Warehouse $192 57% 1.72 $1.6 Hotel $102 56% 2.05 $5.1 Other $83 57% 1.93 $1.7 Land/Construction $38 47% NA $2.0 (1) Balance in millions. Excludes deferred fees/cost. (2) LTV - Loan to value ratio. (3) DSCR - Debt service coverage ratio. 13
NON-INTEREST INCOME In thousands (except ratios) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Total service fees $2,667 $2,544 $1,977 $1,651 $1,348 Wire fees $587 $563 $557 $521 $518 Swap fees $1,076 $1,285 $650 $285 $16 Other $1,004 $696 $770 $845 $814 Gain (loss) on sale of securities available for sale - - 14 - (883) Gain on sale of loans held for sale 154 109 417 67 105 Other income 806 785 803 746 756 Total non-interest income $3,627 $3,438 $3,211 $2,464 $1,326 Average total assets $2,544,592 $2,485,434 $2,479,222 $2,436,103 $2,268,811 Non -interest income/Average assets (1) 0.57% 0.55% 0.52% 0.41% 0.23% Commentary Service fees increased $1.3 million compared to the fourth quarter 2023 mainly due to loan swap fees, wire fees, and loan pre-payment penalties. Gain on sale of SBA 7a loans represented $154 thousand for the fourth quarter 2024. Non-interest income is 15.8% of total revenue for fourth quarter 2024 and 0.57% to average assets; both metrics are higher compared to fourth quarter 2023. (1) Annualized. 14
NON-INTEREST EXPENSE In thousands (except ratios) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Salaries and employee benefits $7,930 $7,200 $7,353 $6,310 $6,104 Occupancy 1,337 1,341 1,266 1,314 1,262 Regulatory assessments and fees 405 452 476 433 412 Consulting and legal fees 552 161 263 592 642 Network and information technology services 494 513 479 507 552 Other operating expense 2,136 1,787 1,723 2,018 1,747 Total non-interest expense $12,854 $11,454 $11,560 $11,174 $10,719 Efficiency ratio 55.92% 53.16% 56.33% 63.41% 68.27% Non-interest expense/Average assets (1) 2.01% 1.83% 1.88% 1.84% 1.87% Full-time equivalent employees 199 198 197 199 196 Commentary – Q4 2024 Vs Q3 2024 Q4’24 Routine Increases: $362k Salaries and employee benefits increased $110 thousand due to merit increases and higher replacement cost of personnel. Consulting and legal expenses increased $218 thousand due to timing of billings throughout the year. Other operating expense increased $104 thousand mainly due to internet banking fees and item processing expenses. Occupancy, regulatory assessment and fees, and network and information technology had a net decrease of $70 thousand. Q4’24 Non-Routine Increases: $1,038k Diluted EPS Impact ($0.04) Salaries and employee benefits increased $620 thousand due to restricted stock award expense (a shorter initial vesting period; annual expense was recognized in two months). Legal expenses increased $173 thousand for various items for which we expect reimbursement in coming quarters. Other operating expense increased $174 thousand related to forced-place insurance related to borrowers. The Company expects to receive reimbursements in coming quarters. Additionally, other operating expense increase due to $71 thousand excise tax related to the Company’s stock repurchases pursuant to its previously announced
stock repurchase programs. Annualized. 15
CAPITAL Capital Ratios (1) Leverage Ratio TCE/TA (2) Tier 1 Risk-Based Capital Total Risk-Based Capital AOCI In Millions Q4 2024 9.53% 8.34% 12.28% 13.51% ($44.5) Q3 2024 9.34% 8.54% 12.01% 13.22% ($38.0) Q4 2023 9.28% 8.21% 11.62% 12.78% ($44.3) Well- Capitalized 5.00% NA 8.00% 10.00% Commentary The Company paid in December 2024 a cash dividend of $0.05 per share of the Company’s Class A common stock; the aggregate distributed dividend amount was $1.0 million. The Company doubled the size of the quarterly dividend to $0.10 per share for first quarter 2025. Q4 2024 EOP common stock shares outstanding: 19,924,632. (1) Reflects the Company's regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. (2) Non-GAAP financial measures. See reconciliation in this presentation. 16
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 enhancement identified Core funded deposit base with 28% non-interest-bearing deposits (Avg.) 17
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) In thousands (except ratios) As of or For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Pre-tax pre-provision ("PTPP") income: Net income Plus: Provision income taxes Plus: Provision tax credit losses PTPP income PTPP return on average assets PTPP income Average assets PIPP return on average assets Operating net income: Net income Less: Net gains (losses) on sale of securities Less: Tax effect on sale of securities Operating net income Operating PTPP income: PTPP income Less: Net gains (losses) on sale of securities Operating PTPP income Operating PTPP return on average assets Operating PTPP income Average assets Operating PTPP return on average assets Operating return on average assets Operating net income Average assets Operating return on average assets Operating return on average equity: Operating net income Average equity Operating return on average equity S 6,904 S 6,949 S 6,209 S 4,612 S 2,721 2,197 2,213 1,967 1,426 787 1,030 931 786 410 1,475 S 10,131 S 10,093 S 8,962 S 6,448 S 4,983 (1) S 10,131 S 10,093 S 8,962 S 6,448 S 4,983 s 2,544,592 s 2,485,434 s 2,479,222 s 2,436,103 s 2,268,811 (2) 1.58% 1.62% 1.45% 1.06% 0.87% (1) S 6,904 S 6,949 S 6,209 S 4,612 S 2,721 - - 14 - (883) - - (4) 224 S 6,904 S 6,949 S 6,199 S 4,612 S 3,380 1) s 10,131 s 10,093 s 8,962 s 6,448 s 4,983 c 10131 c 10 003 c 14 8 048 c s 448 c (883) c 2cc • • • • (1) s 10,131 s 10,093 s 8,948 s 6,448 s 5,866 s 2,544,592 s 2,485,434 s 2,479,222 s 2,436,103 s 2,268,811 (2) 1.58% 1.62% 1.45% 1.06% 1.03% (1) S 6,904 S 6,949 S 6,199 S 4,612 S 3,380 S 2,544,592 s 2,485,434 S 2,479,222 S 2,436,103 S 2,268,811 (2) 1.08% 1.11% 1.01% 0.76% 0.59% (1) • s 215,715 • s -,”9 206,641 • s 197,755 • s --- 193,092 • s 183,629 (2) 12.73% 13.38% 12.61% 9.61% 7.30% Operating Revenue:
(1) Net interest income S 19,358 S 18,109 S 17,311 S 15,158 S 14,376 Non-interest income 3,627 3,438 3,211 2,464 1,326 Less: Net gains (losses) on sale of securities Operating revenue c 23 02c c 21 EA7 c 14 20 E09 c 17 £23 c (883) 1c coc — — — — — Operating Efficiency Ratio: (1) Total non-interest expense s 12,854 s 11,454 s 11,560 s 11,174 s 10,719 Operating revenue Operating efficiency ratio s 22,985 55.92% s 21,547 53.16% s 20,508 56.37% s 17,622 63.41% s 16,585 64.63% (1)The Company believes these non-GAAP measurements are key indicators ofthe ongoing eamings power of the Company. (2) Annualized 18
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of or For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Tangible book value per common share (at period-end): (1) Total stockholders’ equity $ 215.388 $ 213,916 $ 201.020 $ 195,011 $ 191,968 Less: Intangible assets Total shares issued and outstanding (at period-end): Total common shares issued and outstanding 19,924,632 19,620,632 19,630,632 19,650,463 19,575,435 Tangible book value per common share (2) S 10.81 $ 10.90 $ 10.24 $ 9.92 $ 9.81 Operating diluted net income per common share: (1) Operating net income 3 6,904 3 6,949 3 6,199 3 4,612 3 3,380 Total weighted average diluted shares of common stock 20,183,731 19,825,211 19,717,167 19,698,258 19,573,350 Operating diluted net income per common share: $ 0.34 $ 0.35 $ 0.31 $ 0.23 $ 0.17 Tangible Com m on Equity/Tangible Assets (1) Tangible stockholders’ equity $ 215,388 $ 213,916 $ 201,020 $ 195,011 $ 191,968 Tangible total assets (3) $ 2,581,216 $ 2,503,954 $ 2,458,270 $ 2,489,142 $ 2,339,093 Tangible Common Equity/Tangible Assets 8.34% 8.54% 8.18% 7.83% 8.21% 1. The Company believes these non-GAAP measurements are key indicators of the ongoing earnings pow er of the Company. 2. Excludes the dilutive effect if any, of shares of common stock Issuable upon exercise of outstanding stock options. 3. Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAAP. 19
CONTACT INFORMATION LOU DE LA AGUILERA Chairman, President & CEO (305) 715-5186 [email protected] ROB ANDERSON EVP, Chief Financial Officer (305) 715-5393 [email protected] INVESTOR RELATIONS [email protected] 20