8-K

1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,

D.C. 20549

__________________________

FORM

8-K

__________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act

of 1934

Date of Report (Date of earliest event reported):

January 25, 2024

__________________________

USCB Financial Holdings, Inc.

(Exact name of Registrant as Specified in Its Charter)

__________________________

Florida

001-41196

87-4070846

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

2301 N.W. 87th Avenue

,

Doral

,

Florida

33172

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone

Number, Including Area Code: (

305

)

715-5200

__________________________

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:

☐

Written communications pursuant

to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a

-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b)

under the Exchange Act (17 CFR 240.14d-2(b))

☐

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:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Class A common stock, $1.00 par value per share

USCB

The Nasdaq Stock Market LLC

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.

☐

2

Item 2.02. Results of Operations and Financial Condition.

On January 25, 2024, USCB Financial

Holdings, Inc. (the “Company”), issued

a press release announcing its financial

results

for the fourth

quarter ended December

31, 2023. A copy

of the press release

is furnished as

Exhibit 99.1 to

this Current Report

on the

(“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 26, 2024, the Company will hold an earnings conference call to

discuss

its financial performance

for the quarter ended

December 31, 2023. A

copy of the slides

forming the basis of

the presentation is being

furnished as Exhibit 99.2 to this Current Report on 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

USCB Financial Holdings, Inc. Press Release, dated January 25, 2024

99.2

Earnings Presentation, dated January 25, 2024

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

3

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 25, 2024

exhibit991

1

Exhibit 99.1

EARNINGS RELEASE

USCB Financial Holdings, Inc. Reports Diluted EPS of $0.14 for Q4 2023

MIAMI,

FL – January 25, 2024 – USCB Financial Holdings,

Inc. (the “Company”) (NASDAQ: USCB)

, the holding company for U.S. Century Bank (the

“Bank”),

reported net income of

$2.7 million or $0.14

per diluted share for

the three months ended

December 31, 2023, compared

to net income of

$4.4 million or $0.22

per diluted

share, for the same period in 2022.

“I am pleased

to announce the results

of a robust

quarter at US Century

Bank, achieving loan production of

$186 million with $150

million in loan

fundings having a

weighted average coupon of 8% on new loans.” said Luis de

la Aguilera, Chairman, President and CEO

“Despite facing one of the most aggressive

Federal Reserve tightening periods in history,

we've observed a steady improvement in our operating environment. Our Net

Interest Margin (NIM) improved 5 bps in comparison to the previous

quarter. Additionally, our accumulated comprehensive loss also showed improvement in the fourth

quarter decreasing by $7.0

million to $44.3 million,

which has increased our

stockholders equity and tangible

book value. As part

of our commitment to

address NIM

compression, we executed a $10 million loss trade

transaction selling lower-yielding securities and reinvesting

the funds in higher-yielding investments. Acknowledging

the industry-wide impact of an inverted yield curve on earnings, our

focus in 2024 is geared towards continued higher-yield loan

production, deposit pricing discipline,

and leveraging our proven business lines as lead deposit aggregators.”

said de la Aguilera.

Unless otherwise stated,

all percentage comparisons in

the bullet points

below are calculated

at or for

the quarter ended

December 31, 2023 compared to

at or for

the

quarter ended December 31, 2022 and annualized where appropriate.

Profitability

•

Annualized return on average assets for the quarter ended

December 31, 2023 was 0.48% compared to 0.86%

for the fourth quarter of 2022. Operating pre-tax pre-

provision profit (PTPP) return on

average assets (non-GAAP financial measure) for the

quarter ended December 31, 2023 was 1.03%

compared to 1.69% for the

fourth quarter of 2022.

•

Annualized return on average stockholders’ equity for

the quarter ended December 31, 2023 was 5.88% compared

to 9.91% for the fourth quarter of 2022.

•

The efficiency

ratio for

the quarter

ended December 31, 2023

was 68.27% compared

to 59.81%

for the

fourth quarter of

2022. Operating

efficiency ratio

(non-

GAAP financial measure) for the quarter ended December 31,

2023 was 64.63% compared to 53.46% for the fourth quarter

of 2022.

•

Net interest margin for the quarter ended December 31, 2023 was 2.65%

compared to 3.45% for the fourth quarter of 2022.

•

Net interest income before provision for

credit losses was $14.4 million for the quarter

ended December 31, 2023, a decrease of

$2.5 million or 14.8% compared to

the fourth quarter of 2022.

Balance Sheet

•

Total assets were $2.3 billion at December 31, 2023, representing an increase of $253.3 million

or 12.1% from December 31, 2022.

•

Total loans were $1.8 billion at December 31, 2023, representing an increase of $273.5 million

or 18.1% from December 31, 2022.

•

Total deposits were $1.9 billion at December 31, 2023, representing an increase of $107.9 million

or 5.9% from December 31, 2022.

•

Total stockholders’ equity was $192.0

million at December 31,

2023, representing an increase

of $9.5 million or

5.2%

from December 31, 2022.

Total stockholders’

equity

includes

accumulated

comprehensive

loss

of

$44.3

million

at

December 31,

2023

compared

to

accumulated

comprehensive

loss

of

$44.8

million

at

December 31, 2022.

Asset Quality

•

Allowance for credit

losses (“ACL”) was

calculated under the

Current Expected Credit

Losses (“CECL”) standard

methodology for all

periods in 2023

and the

incurred loss methodology for all periods in 2022.

•

The ACL increased by $3.6 million to $21.1 million at December

31, 2023 from $17.5 million at December 31, 2022.

•

The ACL represented 1.18% of total loans at December 31, 2023

and 1.16% at December 31, 2022.

•

Non-performing loans to total loans was 0.03% at December

31, 2023 compared to 0.00% at December 31, 2022.

Non-interest Income and Non-interest Expense

•

Non-interest income was $1.3 million for the three months

ended December 31, 2023, an increase of $1.4 million compared to

negative $0.1 million for the same

period in 2022.

•

Non-interest expense was $10.7 million for the

three months ended December 31, 2023, an

increase of $705 thousand or

7.0% compared to $10.0

million for the

same period in 2022.

2

Capital

•

During the fourth quarter the Company repurchased

92,317 shares of the Company’s common stock at a weighted

average price per share of $10.45. The aggregate

purchase price for

the repurchase was

approximately $968 thousand,

including transaction

costs. The

repurchase was

made through open

market transaction

pursuant

to the Company’s publicly announced stock repurchase program. As of December 31, 2023,

80,080 shares remained authorized for repurchase under

the program.

•

During 2023 the Company repurchased 669,920 shares of the Company’s

common stock at a weighted average price per share of

$11.28.

The aggregate purchase

price for

repurchases was approximately $7.6

million,

including transaction costs.

The

repurchases were made

through open market

transactions pursuant to

the

Company’s publicly announced stock repurchase program.

•

As of December 31, 2023,

total risk-based capital ratios for the Company and

the Bank were 12.78% and 12.65%, respectively.

•

Tangible book

value per common

share (non-GAAP financial

measure) at December

31, 2023 was

$9.81, representing an

increase of $0.69

from December 31,

2022.

Tangible book value per common share at December 31, 2023

was negatively affected by $2.26 due to

an accumulated comprehensive loss of $44.3

million.

At December 31, 2022, tangible

book value per common share of

$9.12 was negatively affected by $2.24 due to

$44.8 million in accumulated comprehensive

loss.

Conference Call and Webcast

The Company will host

a conference call on

Friday, January 26,

2024, at 11:00

a.m. Eastern Time to discuss

the Company’s unaudited

financial results for the quarter

ended December 31, 2023. 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 at 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 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,” “continue,” and “intend,” 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 results

of operations and financial

condition from expected

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, 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

cybersecurity-

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

has filed or will file with the SEC.

3

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 financial 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 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

InvestorRelations@uscentury.com

Media Relations

Martha Guerra-Kattou

MGuerra@uscentury.com

4

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,

2023

2022

2023

2022

Interest income:

Loans, including fees

$

24,803

$

17,836

$

87,884

$

60,825

Investment securities

2,511

2,306

10,012

9,346

Interest-bearing deposits in financial institutions

662

455

3,121

929

Total interest income

27,976

20,597

101,017

71,100

Interest expense:

Interest-bearing checking

327

34

901

86

Savings and money market accounts

9,126

2,866

29,658

5,173

Time deposits

2,733

616

8,500

1,509

FHLB advances and other borrowings

1,414

215

3,390

671

Total interest expense

13,600

3,731

42,449

7,439

Net interest income before provision for credit losses

14,376

16,866

58,568

63,661

Provision for credit losses

1,475

880

2,367

2,495

Net interest income after provision for credit losses

12,901

15,986

56,201

61,166

Non-interest income:

Service fees

1,348

1,093

5,055

4,010

Gain (loss) on sale of securities available for sale, net

(883)

(1,989)

(1,859)

(2,529)

Gain on sale of loans held for sale, net

105

205

801

891

Loan settlement

-

-

-

161

Other non-interest income

756

568

3,406

2,695

Total non-interest income

1,326

(123)

7,403

5,228

Non-interest expense:

Salaries and employee benefits

6,104

6,080

24,429

23,943

Occupancy

1,262

1,256

5,230

5,058

Regulatory assessments and fees

412

222

1,453

930

Consulting and legal fees

642

371

1,899

1,890

Network and information technology services

552

483

2,016

1,806

Other operating expense

1,747

1,602

6,781

5,682

Total non-interest expense

10,719

10,014

41,808

39,309

Net income before income tax expense

3,508

5,849

21,796

27,085

Income tax expense

787

1,415

5,251

6,944

Net income

$

2,721

$

4,434

$

16,545

$

20,141

Per share information:

Net income per common share, basic

$

0.14

$

0.22

$

0.84

$

1.01

Net income per common share, diluted

$

0.14

$

0.22

$

0.84

$

1.00

Weighted average shares outstanding:

Common shares, basic

19,503,043

20,000,753

19,621,698

19,999,323

Common shares, diluted

19,573,350

20,172,438

19,687,634

20,176,838

5

USCB FINANCIAL HOLDINGS, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands, except per share data)

As of or For the Three Months Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Income statement data:

Net interest income

$

14,376

$

14,022

$

14,173

$

15,997

$

16,866

Provision for credit losses

1,475

653

38

201

880

Net interest income after provision for credit losses

12,901

13,369

14,135

15,796

15,986

Service fees

1,348

1,329

1,173

1,205

1,093

Gain (loss) on sale of securities available for sale, net

(883)

(955)

-

(21)

(1,989)

Gain on sale of loans held for sale, net

105

255

94

347

205

Other income

756

1,532

579

539

568

Total non-interest income

1,326

2,161

1,846

2,070

(123)

Salaries and employee benefits

6,104

6,066

5,882

6,377

6,080

Occupancy

1,262

1,350

1,319

1,299

1,256

Regulatory assessments and fees

412

365

452

224

222

Consulting and legal fees

642

513

386

358

371

Network and information technology services

552

481

505

478

483

Other operating expense

1,747

1,686

1,908

1,440

1,602

Total non-interest expense

10,719

10,461

10,452

10,176

10,014

Net income before income tax expense

3,508

5,069

5,529

7,690

5,849

Income tax expense

787

1,250

1,333

1,881

1,415

Net income

$

2,721

$

3,819

$

4,196

$

5,809

$

4,434

Per share information:

Net income per common share, basic

$

0.14

$

0.20

$

0.21

$

0.29

$

0.22

Net income per common share, diluted

$

0.14

$

0.19

$

0.21

$

0.29

$

0.22

Balance sheet data (at period-end):

Cash and cash equivalents

$

41,062

$

33,435

$

87,280

$

63,251

$

54,168

Securities available-for-sale

$

229,329

$

218,609

$

218,442

$

229,409

$

230,140

Securities held-to-maturity

$

174,974

$

197,311

$

220,956

$

186,428

$

188,699

Total securities

$

404,303

$

415,920

$

439,398

$

415,837

$

418,839

Loans held for investment

(1)

$

1,780,827

$

1,676,520

$

1,595,959

$

1,580,394

$

1,507,338

Allowance for credit losses

$

(21,084)

$

(19,493)

$

(18,815)

$

(18,887)

$

(17,487)

Total assets

$

2,339,093

$

2,244,602

$

2,225,914

$

2,163,821

$

2,085,834

Non-interest-bearing deposits

$

552,762

$

573,546

$

572,360

$

633,606

$

629,776

Interest-bearing deposits

$

1,384,377

$

1,347,376

$

1,348,941

$

1,196,856

$

1,199,505

Total deposits

$

1,937,139

$

1,920,922

$

1,921,301

$

1,830,462

$

1,829,281

FHLB advances and other borrowings

$

183,000

$

102,000

$

87,000

$

120,000

$

46,000

Total liabilities

$

2,147,125

$

2,061,718

$

2,042,229

$

1,979,963

$

1,903,406

Total stockholders' equity

$

191,968

$

182,884

$

183,685

$

183,858

$

182,428

Capital ratios:

(2)

Leverage ratio

9.28%

9.26%

9.32%

9.36%

9.61%

Common equity tier 1 capital

11.62%

11.97%

12.27%

12.04%

12.53%

Tier 1 risk-based capital

11.62%

11.97%

12.27%

12.04%

12.53%

Total risk-based capital

12.78%

13.10%

13.42%

13.20%

13.65%

(1)

Loan amounts include deferred fees/costs.

(2) Reflects the Company's regulatory capital ratios which are

provided for information purposes only; as a small bank holding

company, the Company is not subject to

regulatory capital requirements.

6

USCB FINANCIAL HOLDINGS, INC.

AVERAGE BALANCES, RATIOS,

AND OTHER DATA (UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Average balance sheet data:

Cash and cash equivalents

$

57,069

$

90,742

$

94,313

$

50,822

$

61,892

Securities available-for-sale

$

215,649

$

222,134

$

224,913

$

230,336

$

242,144

Securities held-to-maturity

$

181,151

$

218,694

$

192,628

$

187,826

$

184,459

Total securities

$

396,800

$

440,828

$

417,541

$

418,162

$

426,603

Loans held for investment

(1)

$

1,698,611

$

1,610,864

$

1,569,266

$

1,547,393

$

1,456,780

Total assets

$

2,268,811

$

2,250,258

$

2,183,542

$

2,120,218

$

2,051,867

Interest-bearing deposits

$

1,336,470

$

1,353,516

$

1,270,657

$

1,179,878

$

1,150,049

Non-interest-bearing deposits

$

577,133

$

587,917

$

601,778

$

664,369

$

653,820

Total deposits

$

1,913,603

$

1,941,433

$

1,872,435

$

1,844,247

$

1,803,869

FHLB advances and other borrowings

$

139,000

$

85,326

$

93,075

$

61,600

$

37,500

Total liabilities

$

2,085,182

$

2,065,357

$

1,999,304

$

1,936,847

$

1,874,311

Total stockholders' equity

$

183,629

$

184,901

$

184,238

$

183,371

$

177,556

Performance ratios:

Return on average assets

(2)

0.48%

0.67%

0.77%

1.11%

0.86%

Return on average equity

(2)

5.88%

8.19%

9.13%

12.85%

9.91%

Net interest margin

(2)

2.65%

2.60%

2.73%

3.22%

3.45%

Non-interest income (loss) to average assets

(2)

0.23%

0.38%

0.34%

0.40%

(0.02)%

Efficiency ratio

(3)

68.27%

64.64%

65.25%

56.32%

59.81%

Loans by type (at period end):

(4)

Residential real estate

$

204,419

$

188,880

$

183,093

$

184,427

$

185,636

Commercial real estate

$

1,047,593

$

1,005,280

$

989,401

$

987,757

$

970,410

Commercial and industrial

$

219,757

$

212,975

$

169,401

$

160,947

$

126,984

Foreign banks

$

114,945

$

94,640

$

85,409

$

97,405

$

93,769

Consumer and other

$

191,930

$

173,096

$

167,845

$

149,410

$

130,429

Asset quality data:

Allowance for credit losses to total loans

1.18%

1.16%

1.18%

1.20%

1.16%

Allowance for credit losses to non-performing loans

4,505%

4,070%

3,871%

3,886%

• %

Total non-performing loans

(5)

$

468

$

479

$

486

$

486

$

-

Non-performing loans to total loans

0.03%

0.03%

0.03%

0.03%

• %

Non-performing assets to total assets

(5)

0.02%

0.02%

0.02%

0.02%

• %

Net charge-offs (recoveries of) to average loans

(2)

(0.00)%

(0.00)%

0.01%

(0.01)%

(0.00)%

Net charge-offs (recovery) of credit losses

$

(3)

$

(5)

$

29

$

(49)

$

(2)

Interest rates and yields:

(2)

Loans

5.79%

5.55%

5.33%

5.17%

4.86%

Investment securities

2.46%

2.52%

2.26%

2.20%

2.13%

Total interest-earning assets

5.16%

4.89%

4.68%

4.51%

4.21%

Deposits

2.53%

2.39%

1.99%

1.29%

0.77%

FHLB advances and other borrowings

4.04%

3.19%

3.42%

3.27%

2.27%

Total interest-bearing liabilities

3.66%

3.41%

2.97%

2.08%

1.25%

Other information:

Full-time equivalent employees

196

194

198

196

191

(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 and percentages for total non-performing

loans and total non-performing assets are the same at the dates

presented since there were no impaired

investments or other real estate owned (OREO) recorded.

7

USCB FINANCIAL HOLDINGS, INC.

NET INTEREST MARGIN (UNAUDITED)

(Dollars in thousands)

Three Months Ended December 31,

2023

2022

Average

Balance

Interest

Yield/Rate

(1)

Average

Balance

Interest

Yield/Rate

(1)

Assets

Interest-earning assets:

Loans

(2)

$

1,698,611

$

24,803

5.79%

$

1,456,780

$

17,836

4.86%

Investment securities

(3)

404,850

2,511

2.46%

429,020

2,306

2.13%

Other interest-earnings assets

49,583

662

5.30%

53,717

455

3.36%

Total interest-earning assets

2,153,044

27,976

5.16%

1,939,517

20,597

4.21%

Non-interest-earning assets

115,767

112,350

Total assets

$

2,268,811

$

2,051,867

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-bearing checking

$

49,675

327

2.61%

$

61,976

34

0.22%

Saving and money market deposits

1,004,805

9,126

3.60%

871,269

2,866

1.31%

Time deposits

281,990

2,733

3.85%

216,804

616

1.13%

Total interest-bearing deposits

1,336,470

12,186

3.62%

1,150,049

3,516

1.21%

FHLB advances and other borrowings

139,000

1,414

4.04%

37,500

215

2.27%

Total interest-bearing liabilities

1,475,470

13,600

3.66%

1,187,549

3,731

1.25%

Non-interest-bearing demand deposits

577,133

653,820

Other non-interest-bearing liabilities

32,579

32,942

Total liabilities

2,085,182

1,874,311

Stockholders' equity

183,629

177,556

Total liabilities and stockholders' equity

$

2,268,811

$

2,051,867

Net interest income

$

14,376

$

16,866

Net interest spread

(4)

1.50%

2.96%

Net interest margin

(5)

2.65%

3.45%

(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.

8

USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Pre-tax pre-provision ("PTPP") income:

(1)

Net income

$

2,721

$

3,819

$

4,196

$

5,809

$

4,434

Plus: Provision for income taxes

787

1,250

1,333

1,881

1,415

Plus: Provision for credit losses

1,475

653

38

201

880

PTPP income

$

4,983

$

5,722

$

5,567

$

7,891

$

6,729

PTPP return on average assets:

(1)

PTPP income

$

4,983

$

5,722

$

5,567

$

7,891

$

6,729

Average assets

$

2,268,811

$

2,250,258

$

2,183,542

$

2,120,218

$

2,051,867

PTPP return on average assets

(2)

0.87%

1.01%

1.02%

1.51%

1.30%

Operating net income:

(1)

Net income

$

2,721

$

3,819

$

4,196

$

5,809

$

4,434

Less: Net gains (losses) on sale of securities

(883)

(955)

-

(21)

(1,989)

Less: Tax effect on sale of securities

224

242

-

5

504

Operating net income

$

3,380

$

4,532

$

4,196

$

5,825

$

5,919

Operating PTPP income:

(1)

PTPP income

$

4,983

$

5,722

$

5,567

$

7,891

$

6,729

Less: Net gains (losses) on sale of securities

(883)

(955)

-

(21)

(1,989)

Operating PTPP income

$

5,866

$

6,677

$

5,567

$

7,912

$

8,718

Operating PTPP return on average assets:

(1)

Operating PTPP income

$

5,866

$

6,677

$

5,567

$

7,912

$

8,718

Average assets

$

2,268,811

$

2,250,258

$

2,183,542

$

2,120,218

$

2,051,867

Operating PTPP return on average assets

(2)

1.03%

1.18%

1.02%

1.51%

1.69%

Operating return on average assets:

(1)

Operating net income

$

3,380

$

4,532

$

4,196

$

5,825

$

5,919

Average assets

$

2,268,811

$

2,250,258

$

2,183,542

$

2,120,218

$

2,051,867

Operating return on average assets

(2)

0.59%

0.80%

0.77%

1.11%

1.14%

Operating return on average equity:

(1)

Operating net income

$

3,380

$

4,532

$

4,196

$

5,825

$

5,919

Average equity

$

183,629

$

184,901

$

184,238

$

183,371

$

177,556

Operating return on average equity

(2)

7.30%

9.72%

9.13%

12.88%

13.23%

Operating Revenue:

(1)

Net interest income

$

14,376

$

14,022

$

14,173

$

15,997

$

16,866

Non-interest income

1,326

2,161

1,846

2,070

(123)

Less: Net gains (losses) on sale of securities

(883)

(955)

-

(21)

(1,989)

Operating revenue

$

16,585

$

17,138

$

16,019

$

18,088

$

18,732

Operating Efficiency Ratio:

(1)

Total non-interest expense

$

10,719

$

10,461

$

10,452

$

10,176

$

10,014

Operating revenue

$

16,585

$

17,138

$

16,019

$

18,088

$

18,732

Operating efficiency ratio

64.63%

61.04%

65.25%

56.26%

53.46%

(1) The Company believes these non-GAAP measurements are

key indicators of the ongoing earnings power of the

Company.

(2)

Annualized.

9

USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands, except per share data)

As of or For the Three Months Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Tangible book value per common share (at period-end):

(1)

Total stockholders' equity

$

191,968

$

182,884

$

183,685

$

183,858

$

182,428

Less: Intangible assets

(2)

-

-

-

-

-

Tangible stockholders' equity

(2)

$

191,968

$

182,884

$

183,685

$

183,858

$

182,428

Total shares issued and outstanding (at period-end):

Total common shares issued and outstanding

19,575,435

19,542,290

19,544,777

19,622,380

20,000,753

Tangible book value per common share

(2) (3)

$

9.81

$

9.36

$

9.40

$

9.37

$

9.12

Operating diluted net income per common share:

(1)

Operating net income

$

3,380

$

4,532

$

4,196

$

5,825

$

5,919

Total weighted average diluted shares of common stock

19,573,350

19,611,897

19,639,682

19,940,606

20,172,438

Operating diluted net income per common share:

$

0.17

$

0.23

$

0.21

$

0.29

$

0.29

Tangible Common Equity/Tangible Assets

(1)

Tangible stockholders' equity

$

191,968

$

182,884

$

183,685

$

183,858

$

182,428

Tangible total assets

(2)

$

2,339,093

$

2,244,602

$

2,225,914

$

2,163,821

$

2,085,834

Tangible Common Equity/Tangible Assets

(2)

8.21%

8.15%

8.25%

8.50%

8.75%

(1)

The Company believes these non-GAAP measurements

are key indicators of the ongoing earnings power

of the Company.

(2) Since the Company has no intangible assets, tangible

stockholders' equity, tangible book value per share and tangible total assets are the same

amounts as

stockholders' equity, book value per share and

total assets calculated under GAAP.

(3)

Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock

options.

exhibit992

Exhibit 99.2

EARNINGS PRESENTATION FOURTH QUARTER 2023 NASDAQ:

USCB USCB Financial Holdings US 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,” and “intend,” 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 results of operations and financial condition from expected 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,

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 cybersecurity

-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 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 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 alternati

ve 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 Reconciliation Tables’ included in the presentation.

All numbers included in this presentation are unaudited unless

otherwise noted.

Q4 2023 HIGHLIGHTS GROWTH Average deposits increased by $109.7

million or 6.1% compared to the fourth quarter 2022.

Average loans increased $241.8 million or 16.6% compared

to the fourth quarter 2022.

Liquidity sources on December 31, 2023, totaled $620

million in on-balance sheet and off-balance sheet sources.

Tangible Book Value per Share (1) on December 31, 2023, of $9.81 includes

AOCI impact of ($2.26) increased from $9.36 in prior quarter

end which included an AOCI impact of ($2.62). PROFITABILITY Net

income was $2.7 million or $0.14 per diluted share and includes a pre-tax

securities loss sale of $883 thousand.

Net interest income before provision and NIM increased

in the quarter compared to third quarter 2023.

ROAA was 0.48% compared to 0.86% for the fourth quarter 2022.

Consulting and legal fees increased $129 thousand due to a one

-time, nonrecurring legal expense associated with the legacy shareholder

lawsuit which was dismissed with prejudice. CAPITAL/ CREDIT During

the quarter, the Company repurchased 92,317 shares of common

stock at a weighted average price per share of $10.45. As of December

31, 2023, 80,080 shares remained authorized for repurchase

under the Company’s publicly announced stock repurchase program

At December 31, 2023, one C&I loan classified as nonaccrual

for a total of $468 thousand.

ACL coverage ratio was 1.18% at December 31, 2023, compared

to 1.16% at September 30, 2023. Effective January 1, 2023, the Company

adopted the CECL methodology for estimating credit losses.

HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans In

millions2016 $735 2017 2018 2019 2020 2021 2022 2023 $1,781

Deposits In millions 2016 $782 2017 2018 2019 2020 2021

2023 $1,937 Total stockholders' equity In millions 2016$86 2017 2018

2019 2020 2021 2022 2023 $192 Allowance for credit losses to

non-performing loans 2016 1.17% 2017 2018 2019 2020 2021 2022

2023 1.18%

Net charge-offs (recoveries) of loan losses 2016 ($1,019) 2017

2018 2019 2020 2021 2022 2023 ($28) Non-performing assets

to total assets 2016 1.58% 2017 2018 2019 2020 2021 2022 2023 0.02%

Net Interest Income In millions 2016 $30 2017 2018 2019 2020 2021

2022 2023 $59 Efficiency ratio 2016 94.15% 2017 2018 2019

2020 2021 2022 2023 68.27% PTPP ROAA (2) 2016 0.24% 2017

2018 2019 2020 2021 2022 2023 (1) Loan amounts include deferred

fees/costs.(2) Non-GAAP financial measure.

FINANCIAL RESULTS In thousands (except per share data)

Q4 2023 Q3 2023 Q4 2022 Total Securities $404,303 $415,920 $418,839

Total Loans (1) $1,780,827 $1,676,520 $1,507,338 Total Assets $2,339,093

$2,244,602 $2,085,834 Total Deposits $1,937,139 $1,920,922

$1,829,281 Total Equity (2) $191,968 $182,844 $182,428 Net

Interest Income $14,376 $14,022 $16,866 Non-Interest Income

$1,326 $2,161 ($123) Total Revenue $15,702 $16,183 $16,743

Provision for Credit Losses $1,475 $653 $880 Non-Interest Expense

$10,719 $10,461 $10,014 Net Income $2,721 $3,819 $4,434

Diluted Earning Per Share (EPS) $0.14 $0.19 $0.22 Operating

Diluted EPS (3) $0.17 $0.23 $0.29 Weighted Average Diluted Shares

19,573,350 19,611,897 20,172,438 Balance Sheet (EOP) Income

Statement (1) Loan amounts include deferred fees/costs.(2) Total Equity

includes accumulated comprehensive loss of $44.3 million for Q4

2023, $51.2 million for Q3 2023, and $44.8 million for Q4 2022.(3)

Non-GAAP financial measure.

KEY PERFORMANCE INDICATORS Q4 2023 Q3 2023 Q4 2022 In thousands

(except for TBV/share) Total Assets (EOP) $2,339,093 $2,244,602 $2,085,834

Total Loans (EOP) $1,780,827 $1,676,520 $1,507,338 Total Deposits

(EOP) $1,937,139 $1,920,922 $1,829,281 Tangible Book

Value/Share (1)(4) $9.81 $9.36 $9.12 Return On Average

Assets (ROAA) (3) 0.48% 0.67% 0.86% Return On Average Equity (ROAE) (3)

5.88% 8.19% 9.91% Net Interest Margin (3) 2.65% 2.60% 3.45%

Efficiency Ratio 68.27% 64.64% 59.81% Non-Interest Expense/Avg

Assets (3) 1.87% 1.84% 1.94% Tangible Common Equity/Tangible

Assets (1) 8.21% 8.15% 8.75% Total Risk-Based Capital (2) 12.78%

13.10% 13.65% NCO/Avg Loans (3) 0.00% 0.00% (0.00%) NPA/Assets

0.02% 0.02% 0.00% Allowance Credit Losses/Loans 1.18% 1.16%

1.16% GROWTH PROFITABILITY CAPITAL/

DEPOSIT PORTFOLIO in this slide the Deposits AVG totals must be updated

manually Same goes for the red bps math Deposits AVG In millions $1,804

$217 $62$654Q42022 $1,844 $225 $897 $58 $664 Q12023 $1,872

$277 $940 $53 $602 Q22023 $1,941 $290 $52 $588 Q3

2023 $1,914 $282 $1,005 $50 $577 Q42023 Non-interest-bearing

deposits Interest-bearing checking deposits Moneymarket

adnd savings Time deposits Commentary Average deposits decreased

$27.8 million or 5.69% annualized compared to the prior quarter and

increased $109.7 million or 6.1% compared to the fourth quarter

2022.Deposit composition mix shifted towards interest-bearing

deposits. Average DDA balances comprised 30.1% of total deposits as of December

31, 2023. Deposit beta of 44% since Q4 2021.Deposit cost increasing

but at a slower pace. Deposit Cost + 525 bps Q4’23 vs Q4’210.21%0.25%

4.50% 5.00% 5.25% 5.50% 5.50% Q42021 Q4 2022 Q1

2023 Q2 2023 Q3 2023 Q4 2023 Deposit Cost Fed Funds Rate (upper

bound)

DEPOSIT DIST EOP for Balance Sheet amounts RIBUTION Deposits

Composition Personal Business Brokered deposits Public Funds 3% 14%33%50%

Commentary Our deposit base reflects our business model: a commercial

bank. The total amount of uninsured deposits was 55% at quarter

end.As of December 31, 2023, the deposit balance of ICS/CDARS

was $107.3 million, a decrease of $9.2 million from end of third

quarter 2023. Deposits by Customer Segment In thousands for balance

sheet amounts Uninsured Deposits to Total Deposits in millions59%$750$1,079Q4202256%$802$1,028

Q12023 49% $970 $951 Q22023 49% $985$936 Q3 2023

55%$871 $1,066Q4 2023 uninsured deposits insured deposits uninsured

deposits Deposit Type Total Balance % of Total (#) Accounts Average Balance

per Account

Business $970,644 50 7,243 134 Personal $648,095 33% 12,715

51 Public Funds $268,400 14% 47 5,711 Brokered CDs $50,000

3% 2 25,000

Grand Total $ 1,937,139 100% 20,007 $97

Deposits Trend (EOP) In millions $88 $30 $10 $48 12/31/2018 $229

$62 $38 $129 12/31/2019 $312 $97 $77 $138 12/31/2020 $352 $1

30$68$154 12/31/2021 $446 $172 $97 $177 12/31/2022$492 $16 $164

$112 $200 12/31/2023Global HOA JA MD advantage Commentary

$404 million in deposit growth compared to December 31, 2018.Growth

by vertical from 2018 to 2023: JA/PCG: $134 million.HOA:

$102 million.Correspondent Banking & International Banking:

$152 million.MD Advantage: $16 million.

LIQUIDITYEOP for Balance Sheet amountsTotal Liquidity30%28%38%33%27%

20% 19% 14% 10% 10% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23On

Balance Sheet Liquid Assets Total Liquidity Liquid Assets: On-Balance

Sheet Liquidity / Total Assets Total Liquidity: Total Liquidity / Total AssetsSources

of Liquidity (in millions) 12/31/2023On Balance Sheet LiquidityCash$7Due

from banks$30Investment securities unpledged$188Total on

balance sheet liquidity (Liquid Assets) $225Off Balance Sheet LiquidityFHLB

excess capacity$124Bank Term Funding Program (BTFP) $132Federal

Reserve Discount Window$34Fed Fund Lines$105Total off

balance sheet liquidity$395Total Liquidity$620Liquidity calculation

excludes vault cash reservesCommentaryWe believe we are

well positioned to weather the current economic environment. We have

ample sources of liquidity both on and off-balance sheet. Loan-to-deposit

ratio increased due to additional loan production during the quarter.

We are enrolled in BTFP but did not draw any funds as of December

31, 2023. However, in early January, we drew down $80 million and

paid off a similar amount of FHLB borrowings to take advantage

of the less expensive funding source (70bps on $80 million).

Loan-to-Deposit Ratio82.4% Dec-22 86.3% Mar-23 83.1%

Jun-23 87.3% Sep-23 91.9% Dec-23

LOAN PORTFOLIOTotal Loans (AVG) In millions $1,457 $1$1,456

Q4 2022 $1,547 $1 $1,546 $1,569 $0$1,569 Q2 2023 $1,611 $0$1,611

Q3 2023 $1,699 $0$1,699 Q4 2023Loans (Excl PPP) PPP LoansLoan

Yields4.86% 0.04% 4.82% 5.17%0.03%5.14%5.33%0.02%5.31%5.55%0.02%5.53%5.79%0.00%5.79%Q42022

Q12023 Q22023 Q42023Loan coupon Loan feesCommentaryAverage

loans increased $87.7 million or 21.6% annualized compared to prior

quarter and $241.8 million or 16.6% compared to the fourth quarter

2022.Loan coupon increased 26 bps compared to prior quarter

and 97 bps compared to the fourth quarter 2022. Loan fees for the fourth

quarter 2023 decreased due to realization of premium on purchased

loans.While our average loan portfolio for the fourth quarter

of 2023 was $1.7 billion, our EOP loan balance was $1.8 billion. + 97 bpsQ4’23

vs Q4’22

LOAN PRODUCTIONNet Loan Production TrendIn millions$129$545.68%$94$22$67$516.66%7.20%$67$517.20%8.00%$135$55$150$46

Q42022Q12023Q22023Q32023Q42023Loan Production/Line

changes Loan Amortization/payoffs New loansaverage couponLoan

Composition Trend(1) In millions$94828%63%9%Jun-20$1,77912%62%26%

Dec-23Residential real estate Commercial real estate

real Estate Loans Commercial and Industrial ,Foreign banks and consumer

and other (1) Excludes unearned fees and PPP Loans. EOP.

Commentary$446 million in new loan production in 2023 at higher

rates.Weighted average coupon on new loans was 8.00% for fourth

quarter 2023, 221 bps above portfolio average.Loan composition

shift from real estate loans to non-CRE loans is steadily increasing,

further diversifying our loan portfolio.

NET INTEREST MARGINNet Interest Income/Margin (1)in thousands(except

ratios)3.45%$16,866 Q42022 3.22%$15,997Q120232.73%$14,173

Q2 2023 2.60% $14,022 Q3 2023 2.65% $14,376Q42023Net interest

income NIMInterest-Earning Assets Mix(AVG)3%22%75%2%21%77%4%20%76%4%21%75%2%19%79%Q42022Q

12023Q22023Q32023Q42023Total Loans Investment securities

Cash Balances & EquivalentsCommentaryNet interest income

before provision and NIM increased in the quarter.NIM is expected

to increase going forward due to:Slower increases in deposit costs

New loans coming on at higher ratesNew advance

from BTFP will represent savings of 70 bps on $80 million compared to previous

FHLB borrowings. Loan to deposit ratio is increasingThe mix of our

interest-earning assets continue to improve.

INTEREST RATE SENSITIVITYin this slide the Static NII Simulation

percentages must be updated manuallyLoan Portfolio Repricing

Profile by Rate Type Fixed Rate 42% Hybrid ARM 4% Variable Rate54%

17%15%68% Prime CMT LIBOR/SOFR Loan Repricing ScheduleVariable/Hybrid

Rate Loans46%13%9%32%0-1yrs1-2yrs2-3yrs>3yrsStatic NII Simulation Year

1 & 2$6,000$5,000$4,000$3,000$2,000$1,000$0 0.8%+1001.1%+2004.5%+1008.1%+200Net

Interest Income change from base ($ in thousands and % change)

SECURITIES PORTFOLIOEOP for Balance Sheet amounts, in millionsPortfolio

CompositionCMO MBS CMBS SBA Agency Municipalities Corporate

Bank subordinated Debt24%14%7%6%5%2%7%35%Commentary

Securities portfolio was $404.3 million; 56.7% of the portfolio

is classified as AFS, while 43.3% is classified as HTM.The

modified duration is 5.5 and the average life is 6.9 years. Duration

has increased as the result of higher rates and lower prepayments. We

expect to receive $40.5 million from the securities portfoli

o

in 2024 at current rates; these cashflows will support loan growth

or debt repayment. If rates drop 100 bps, we expect to receive

$43.3 million.80.3% of the portfolio is invested in mortgage-backed

securities, boosting the liquidity. Securities Portfolio Key MetricsMetrics

as of 13/31/2023 Securities portfolio $404.3 AFS as % of portfolio

56.7% HTM as % of portfolio43.3% Portfolio Yield 2.4% Average

Life 6.9 Mod Duration 5.5 AFS AOCI (50.1) Estimated Short Term Cashflows2024

$43.3 $4.5 $37.6 2025 $39.3 $36.8 $34.5 2026 $48.2 $46.4 $44.7

Total $130.8 $123.6 $116.8 Securities Portfolio % 32.4% 30.6% 28.9%

ASSET QUALITYAllowance for Credit Lossesin thousands (except

ratios) 1.16% 1.20% 1.18% 1.16% 1.18% $17,487 Q42022 $18,887

Q12023 $18,815 Q22023 $19,493 Q3 2023 $21,084 Q4 2023Allowance

for credit losses ACL Total LoansNon-performing Loans in thousands (except

ratios)0.00% $0Q4 2022 0.03% $486 Q12023 0.03% $486 Q2 2023

0.03% $479 Q3 2023 0.03% $468 Q4 2023Non-accrual

loans Non-performing loans to total loansCommentary ACL coverage

ratio is at 1.18% on December 31, 2023, slightly up from prior quarter.One

C&I loan for $468 thousand was classified as nonaccrual

on December 31, 2023. No OREO.ACL increased by $1.6 million due

to net loan growth during the quarter. Classified Loans (1) to Total Loans0.26%0.25%0.21%0.27%0.32%Q42022

Q12023Q22023Q32023Q42023(1) Loans classified as substandard

at period end.

LOAN PORTFOLIO MIXLoan Portfolio Mix (1)Residential real estate

CRE -owner occupied CRE Non-owner occupied commercial and

industrial correspondent banks consumer and other49%12%6%11%12%10%$1,779MM(1)

CommentaryTotal loan balance at quarter end was $1,779 million (1).Commercial

Real Estate (owner occupied and non-owner occupied) was 59%

or $1,048 million of the total loan portfolio(1).CRE mix is diversified

and granular. Retail non-owner occupied makes up 27% of total

CRE or $282.9 million. CRE Loan MixLand/construction 4%

Other 3% Retail 27% Multifamily 17%CRE -owner occupied

17% Office 12% Warehouse 12%Hotels 8% $1,048MMAs of 12/31/23Excludes

unearned feesIncludes loan types: office, warehouse, retail,

and otherCRE Loan Portfolio (non-owner occupied and owner occupied)Loan

Type LTV(1) DSCR (2) Weighted Average Average Loan size

(3)Retail 55% 1.92 $2.9 Multifamily 59% 1.44 $1.4 Office 57% 2.06

$1.4 Warehouse 58% 1.82 $1.6 Hotels 55% 2.11 $5.1Other 59% 1.94

$1.7 Land/construction 52% NA $2.3(1) LTV - Loan to value ratio.(2)

DSCR - Debt service coverage ratio.(3) Balance in millions.

NON-INTEREST INCOMEService feesGain $1,348 $1,329$1,173$1,205$1,093

(loss) on sale of securities available for sale(883) (955) -(21)

(1,989Gain on sale of loans held for sale10525594347205Other income756

1,532

579539568Total non-interest income$1,326$2,161$1,846$2,070($123)

Average total assets$2,268,811$2,250,258$2,183,542$2,120,218$2,051,867Non

-interest income (loss)/Average assets (1) 0.23%0.38%0.34%0.40%(0.02%)CommentaryService

fees have increased year over year due to new foreign correspondent

banks and strategic pricing on wire fees.As part of our commitment

to address NIM compression, we executed a $10 million loss trade

transaction selling lower yielding securities and reinvesting the funds in

higher-yielding investments and loans; resulting in a loss of $883

thousand. Excluding the loss on securities in the fourth quarter

in 2023, non-interest income over average assets was 0.39%, in

line with prior quarters. Q4 2023Q3 2023Q2 2023Q1 2023Q4 2022

NON-INTEREST EXPENSEQ4 2023Q3 2023Q2 2023Q1 2023Q4 2022In

thousands (except ratios) 1,299 Salaries and employee benefits$6,104$6,

066$5,882$6,377$6,080Occupancy1,2621,3501,3191,2991,256Regulatory

assessments and fees412365452224222Consulting and legal

fees642513386358371Network and information technology services552481505478483Other

operating expense1,747 1,686 1,908 1,440 1,602

Total non-interest expense$10,719 $10,461 $10,452 $10,176

$10,014 Efficiency ratio 68.27% 64.64% 65.25%56.32%56.32%59.81%Average

total assets $2,268,811 $2,250,258 $2,183,542 $2,120,218 $2,051,867

Non-interest expense / Average assets (1) 1.87% 1.84% 1.92% 1.95%

1.94% Full-time equivalent employees 196 194 198 196 191Commentary

Consulting and legal fees increased $129 thousand due to a one-time,

nonrecurring legal expense associated with the previously disclosed

legacy shareholder lawsuit commenced in 2023 which was dismissed

in December 2023.Non-interest expense / Average assets has improved

7 bps year-over-year.Operational efficiency

ratio(2) for the fourth quarter 2023 was 64.63%.

CAPITALCapital Ratios (1) Q4 2023Q3 2023Q4 2022Well-

CapitalizedLeverage RatioTCE/TA (2) Tier 1 Risk-Based CapitaTotal

Risk-Based Capitall9.28%9.26%9.61%5.00%8.09%8.15%8.75%NA11.62%11.97%12.53%8.00%12.78%13.10%13.65%10.00%AOCIIn

Millions($44.3) ($51.2) ($44.8) CommentaryDuring the quarter,

the Company repurchased 92,317 shares of common stock at a

weighted average price per share of $10.45. AOCI was ($44.3) million

or ($2.26) per share as of December 31, 2023.Q4 2023 EOP shares

outstanding:Common Stock: 19,575,435(1) Reflects the Company's

regulatory capital ratios which are provided for information purposes

only; as a small bank holding company, the Company is not

subject to regulatory capital requirements. (2) Non-GAAP financial

measures.

TAKEAWAYSLeading franchise located in one of the most attractive

banking markets in Florida and the U.S. Robust organic growthStrong

asset quality, with minimal charge-offs experienced

since 2015 recapitalizationExperienced and tested management teamStrong

profitability, with pathway for future enhancement identifiedCore

funded deposit base with 29% non-interest-bearing deposits (EOP)

APPENDIX - NON-GAAP RECONCILIATIONIn thousands (except ratios)

Pre-tax-provison (“PTPP”) income: As of or for the three months ended

12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022Net income

(1) $2,721 $3,819 $ 4,196 $5,809 $4,434 Plus :Provision for

income taxes 787 1,250 1,333 1,881 1,415 Plus:Provision for credit

losses 1,475 653 38 201 880 PITPP income4,983 $5,722 $5,567

$7,891 $6,729 PTPP return on average assets (1) $4,983 $5,722 $5,567

$7,891 $6,729 Average assets $2,268,811 $2,250,258 $2,183,542 $2,120,2018

$2,051,867 PTPP return on average assets (2) 0.87% 1.01%

1.02% 1.51% 1.30%Operating net income: (1) $2,721 $ 3,819

$ 4,196 $ 5,809 $ 4,434 (883) (955) – (21) (1,989) Less : net gains

(losses) on sale of securities Less :tax effect on sale of securities 224

242 – 5 504Operating net income $3,380 $ 4,532 $ 4,196 $ 5,825

$ 5,919 Operating PTPP income (1) $ 4,983 $5,722 $5,567 $7,891

$6,729 Less:net gains (losses) on sale of securities (883) (955) – (21)

(1,989)Operating PTPP income $ 5,866 $ 6,677 $5,567 $7,912

$8,718Operating PTPP return on average assests: (1) $5,866 $6,677

$5,567 $ 7,912 $8,718Average asets $ 2,268,811 $ 2,250,258 $2,183,542

$2,120,218 $2,051,867 Operating PTPP return on average assets (2)1.03%

1.18% 1.02% 1.51%1.69%Opearting return on average

assets : (1) $3,380 $ 4,532 $ 4,196 $ 5,825 $ 5,919 Average assets $ 2,268,811

$2,250,258 $ 2,183,542 $ 2,051,867 Opearting return on average

assets (2) 0.59% 0.80% 0.77% 1.11% 1.14% Operating return on average

equity : (1)$3,380

$4,532 $4,196 $5,825 $ 5,919 Average equity $183,629 $184,901

$184,238 $183,371 $177.556 Operating return on average

equity 7.30% 9.72% 9.13% 12.88% 13.23%Operating revenue : (1) $

14,376 $14,022 $14,173 $15,997 $16,866 Non-interest income

1,326 2,161 1,846 2,070 (123) Less :net gains (losses)on sale of

securities

(833) (955)- (21)(1,989) Oerating revenue $ 16,585 $ 17,138 $16,019

$ 18,088 $ 18,732Operating Efficiency Ration: (1) $10,719 $10,461

$10,452 $10,176 $10,014 Operating revenue $16,585 $ 17,138

$16,019 $18,088 $18,732 Operating efficiency ration 64.63% 61.04%

65.25% 56.26% 53.46% (1)The company believes these non-GAAP

measurements are key indicators of the ongoing earnings power

of the company (2)Annualized.

APPENDIX - NON-GAAP RECONCILIATIONIn thousands (except ratios

and share data)As of or the for the three months ended Tangible book

value per common share (at period -end) 12/31/2023 9/30/2023

6/30/2023 3/31/2023 12/31/2022Total shareholder’s equity $ 191,9

68 $182,884 $183,858 $182,428 Less:Intangible assets (2)

• • • • • tangible stockholder’s equity (2)$191,968 $182,884 $183,685

$ 183,858 $ 182,428 Total sharesissued and outstanding (at

period-end) 19,575,435 19,542,290 19,544,777 19,622,380 20,000,753

Tangible book value per sommon shar (2)(3) 9.81 9.36 9.40 9.37 9.12Operating

diluted net income per sommon share : (1)$3,380 $4,532 $ 4,196 $5,825

$ 5,919Total weighted average dilute shares of common stock

19,573,350 19,611,897 19,639,682 19,940,606 20,172,438 Operating

diluted net income per sommon share : $ 0.17 $ 0.23 $ 0.21

$ 0.29 $ 0.29 Tangible Common Equity/Tangible Assets (1) $191,968 182,884

183,685 183,858 182,428 Tangible total assets (2) 2,339,093

$ 2,244,602 $ 2,225,914 $ 2,163,821 $ 2,085,834 Tangible common equity

/tangible assets (2) 8.21% 8.15% 8.25% 8.50% 8.75% (1) The company

believes these non-GAAP easurements are key indicators

of the ongoing earnings power of the company. (2) Since the company

has no intangible assets,tangible stockholders’s equity ,tangible

book value per share and tangible assets are the same amounts

as stockholders’ equity , book value per share and total assets calcul

ated under GAAP.(3) Excludes the dilutive effect

,ifany,of shares of common stock issuable upon exercise of outstanding stock

options.

LOU DE LA AGUILERAChairman, President & CEO (305) 715-5186laguilera@uscentury.com

ROB ANDERSONEVP, Chief Financial Officer(305) 715-5393rob.anderson@uscentury.comINVESTOR

RELATIONSInvestorRelations@uscentury.com