USCB Financial Holdings, Inc.

USCB

US90355N1019

Banks

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04-26	Transcript : USCB Financial Holdings, Inc., Q1 2024 Earnings Call, Apr 26, 2024
04-25	USCB Financial Holdings, Inc. announces an Equity Buyback for 500,000 shares, representing 2.5% of its issued share capital.	CI

USCB FINANCIAL HOLDINGS, INC. (form 10-K)

March 24, 2023 at 04:59 pm

Management's Discussion and Analysis of Financial Condition



and Results of Operations

Management's

discussion

and

analysis

of

financial

condition

and

results

of

operations

analyzes

the

consolidated

financial condition and results of operations of the Company and the



Bank, its wholly owned subsidiary, for the years ended
December 31, 2022

and 2021.

This discussion

and analysis

are best

read in

conjunction with

the Consolidated

Financial

Statements and related footnotes



of our Company presented

in Item 8 "Financial

Statements and Supplementary

Data" of
this Annual Report on Form

10-K. In addition to

historical information, this

discussion contains forward-looking



statements
that

involve

risks,

uncertainties

and

assumptions

that

could

cause

actual

results

to

differ

materially

from

management's
expectations.

Factors

that

could

cause

such

differences

are

discussed

in

the

sections

entitled

"Forward-Looking

Statements" and Item 1A "Risk Factors" of this Annual Report. In this Annual Report on Form 10-K, unless the context indicated otherwise, references to "we,"



"us,", and "our" refer to
the Company and the Bank, as

the contest dictates. However, if

the discussion relates to a period



before the Effective Date,
the terms refer only to the Bank.
Forward-Looking Statements
This

Annual

Report

on

Form

10-K

contains

statements

that

are

not

historical

in

nature

are

intended

to

be,

and

are

hereby identified as, forward-looking



statements for purposes of

the safe harbor provided by

Section 21E of the Securities
Exchange

Act

of

1934,

as

amended.

The

words

"may,"

"will,"

"anticipate,"

"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

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.
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;
•

the COVID-19

pandemic

and its

impact

on us,

our employees,

customers

and third-party

service

providers,

and the
ultimate extent of the impact of the pandemic and related

government stimulus programs;
•

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 environment;
•

our

ability

to

comply

with

the

extensive

laws

and

regulations

to

which

we

are

subject,

including

the

laws

for

each
jurisdiction where we operate;
•

legislative or

regulatory changes

and changes

in accounting

principles, policies,

practices or

guidelines, including

the

effects of the implementation of the Current Expected

Credit Losses ("CECL") standard on January 1, 2023; •

the effects of our lack of a diversified loan portfolio and concentration in the South Florida market, including the risks of geographic, depositor, and

industry concentrations, including our concentration in loans



secured by real estate;
•

effects of climate change;
•

the concentration of ownership of our common stock; •

fluctuations in the price of our Class A 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 potential 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 margin;
•

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 Annual Report and other



filings we make with the 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

Annual Report

on Form

10-K 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 statement is 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 herein and in
  Table of Contents


45

USCB Financial Holdings, Inc.

2022 10-K

the reports the Company filed or will file with the SEC and, for periods

prior to the completion of the bank holding company reorganization in December 2021, the Bank filed with the FDIC Non-GAAP Financial Measures This Annual Report on Form 10-K 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

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.

To

the

extent

applicable,

reconciliations

of

these

non-GAAP
measures to the most directly

comparable GAAP measures can be found



in the 'Non-GAAP Reconciliation Tables' included
in this annual report.
Overview
For the year ended December 31, 2022, the Company reported net income of

$20.1 million compared with net income
of

$21.1 million for the year ended December 31, 2021.



In

evaluating

our

financial

performance,

we consider

the

level

of

and

trends

in

net

interest

income,

the

net

interest
margin, the cost of deposits,

levels and composition of

non-interest income and non-interest



expense, performance ratios,
asset quality ratios,

regulatory capital ratios, and any significant event or transaction

The following significant highlights are of note for the



year ended December 31, 2022:
•

Net interest

income before

provision for

credit losses

totaled $63.7 million,

an increase

of $11.2

million or

21.3%,

compared to $52.5 million for the year ended December

31, 2021.

•

Net interest margin ("NIM") was 3.38% for the year ended

December 31, 2022 and 3.26% for the year ended 2021. The yield on earning assets increased to 3.78% for 2022, compared



to 3.52% for 2021.

•

Total

assets

grew

to

$2.1

billion

at

December

31,

2022,

an

increase

of

$231.9

million

or

12.5%,

compared

to
December 31, 2021.
•

Total

loans

grew

to

$1.5

billion

at

December

31,

2022,

an

increase

of

$317.3

million

or

26.7%,

compared

to
December 31, 2021.
•

The cost

of interest-bearing

liabilities

increased to

0.66% for

the

year ended

December

31, 2022

from

0.45%

in

December 31, 2021 as a result of the increase in market

interest rates.

•

Return on average assets for the year ended December



31, 2022 was 1.01% compared to 1.24% in 2021.
•

Return on average

stockholders'

equity for the

year ended December 31,

2022 was

10.73% compared to

11.45%
in 2021.
•

Nonperforming assets was $0.0 for the year ended December

31, 2022 compared to $1.2 million at December



31,
2021.

•

The Company maintained its strong capital position. As of December 31, 2022, the Bank was well-capitalized, with a total risk-based capital ratio of 13.65%,

a tier 1 risk-based capital ratio of



12.53%, a common equity tier 1 capital
ratio of

12.53%, and

a leverage

ratio of

9.61%. As

of December

31, 2022

and 2021,

all of

our regulatory

capital

ratios exceeded the thresholds to be well-capitalized under the



applicable bank regulatory requirements.
•

The Company became the parent bank

holding company of the Bank effective

December 30, 2021. Each share of
the

Bank

was

exchanged

for

one

share

of

the

Company,

making

the

Bank

a

wholly

owned

subsidiary

of

the
Company. Shares

of the Company trade under ticker symbol "USCB" on the Nasdaq



Stock Market.
  Table of Contents


46

USCB Financial Holdings, Inc.

2022 10-K

Critical Accounting Policies and Estimates
The

consolidated

financial

statements

are

prepared

based

on

the

application

of

U.S.

GAAP,

the

most

significant

of
which are described

in Note 1 "Summary

of Significant Accounting

Policies" to our

Consolidated Financial Statements

prepare financial statements in conformity with GAAP,

management makes estimates, assumptions,



and judgments based
on

available

information.

These

estimates,

assumptions,

and

judgments

affect

the

amounts

reported

in

the

financial
statements and accompanying notes. These estimates, assumptions, and judgments
are based on

information available as
of

the

date

of

the

financial

statements

and,

as

this

information

changes,

actual

results

could

differ

from

the

estimates,
assumptions

and

judgments

reflected

in

the

financial

statements.

In

particular,

management

has

identified

accounting
policies that, due to

the estimates, assumptions

and judgments inherent

in those policies, are

critical in understanding

our
financial statements.

Management

has presented

the application

of these

policies to

the audit

and risk

committee of

our
Board.

Allowance for Credit Losses
The allowance for credit

losses ("ACL") is

a valuation allowance that

is established through charges



to earnings in the
form of a

provision for credit

losses. The amount

of the ACL

is affected by

the following: (i)

charge-offs of loans

that decrease
the allowance;

(ii) subsequent

recoveries on

loans previously

charged off

that increase

the allowance;

and (iii)

provisions
for credit losses charged to income that increase or decrease the allowance.
Management considers the policies related to
the ACL

as the

most critical

to the

financial statement

presentation. The

total ACL

includes activity

related to

allowances

calculated in accordance with Accounting Standards Codification ("ASC")



310, Receivables, and ASC 450, Contingencies.
Throughout the year,

management estimates the probable

incurred losses in the loan portfolio



to determine if the ACL
is adequate to absorb such losses. The ACL

consists of specific and general components.



The specific component relates
to loans that are

individually classified as

impaired. We follow

a loan review program

to evaluate the credit

risk in the loan
portfolio. Loans

that have

been identified

as impaired

are reviewed

on a

quarterly basis

in order

to determine

whether a
specific reserve is

required. The

general component covers

non-impaired loans

and is based

on industry and

our specific
historical loan

loss experience,

volume, growth

and composition

of the

loan portfolio,

the evaluation

of our

loan portfolio
through our

internal

loan review

process, general

current

economic

conditions both

internal and

external

to

us that

may

affect the borrower's ability to pay,



value of collateral and other qualitative relevant risk factors. Based on a
review

of these
estimates, we

adjust the ACL

to a

level determined by

management to be

adequate. Estimates of

credit losses

are inherently
subjective as they involve an exercise of judgment.
The

CARES

Act,

as

amended

by

the

Consolidated

Appropriations

Act,

2021,

specified

that

COVID-19

related

loan
modifications executed

between March 1,

2020 and

the earlier

of (i)

60 days

after the

date of

termination of

the national
emergency declared by President Trump and (ii) January 1, 2022, on loans

that were current as of December 31, 2019,

are

not TDRs. Additionally,

under guidance from the federal banking agencies,



other short-term modifications made on a good
faith basis

in response

to COVID-19

to borrowers

that were

current prior

to any

relief are

not TDRs

under ASC

Subtopic
310-40,

"Troubled

Debt

Restructurings

by

Creditors."

These

modifications

include

short-term

(i.e.,

up

to

six

months)
modifications

such

as

payment

deferrals,

fee

waivers,

extensions

of

repayment

terms,

or

delays

in

payment

that

are

insignificant. The Company's charge-off

policy is to continuously review all impaired loans to monitor the Company's ability to collect them in full at the applicable maturity date and/or in

accordance with terms of any restructurings. For loans



which
are collateral dependent,

or deemed to

be uncollectible, any

shortfall in the

fair value of

the collateral relative

to the recorded
investment

in the loan is charged off. The amount charged-off



conforms to the amount necessary to comply with GAAP.
Income Taxes
Deferred tax

assets and

liabilities are

recognized for

the future

tax consequences

attributable to

differences

between

the financial statement carrying amounts of

existing assets and liabilities and their



respective tax bases and operating loss
and tax credit carryforwards. Deferred

tax assets and liabilities are measured

using enacted tax rates expected to



apply to
taxable income

in the

years in

which those

temporary differences

are expected

to be

recovered or

settled. The

effect

on

deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.



Management is required to assess whether a valuation allowance should be
established on the net deferred tax assets
based on the

consideration of

all available evidence

using a more

likely than not

standard. In its

evaluation, management
considers taxable loss

carry-back availability, expectation of sufficient taxable



income, trends in

earnings, the future

reversal

of temporary differences, and available tax planning



strategies.





































  Table of Contents


47

USCB Financial Holdings, Inc.

2022 10-K

The Company recognizes positions taken

or expected to be

taken in a tax



return in accordance with existing accounting
guidance on

income taxes

which prescribes

a recognition threshold

and measurement

process. Interest

and penalties on
tax liabilities, if any,

would be recorded in interest expense and other operating



non-interest expense, respectively.
Other than temporary impairment
The

Company

reviews

investments

quarterly

for

other

than

temporary

impairment

("OTTI").

The

following

primary
factors

are

considered

for

securities

identified

for

OTTI

testing:

percent

decline

in

fair

value,

rating

downgrades,

subordination, duration, the Company's ability to hold the debt security, and the ability of the issuers to pay all amounts



due
in

accordance

with

the

contractual

terms.

Prices

obtained

from

pricing

services

are

usually

not

adjusted.

Based

on

our

internal review procedures

and the fair values

provided by the pricing

services, we believe that

the fair values provided



by
the pricing

services are

consistent with

the principles

of ASC

Topic

820, Fair

Value

Measurement. The

Company may

at
times validate the

observed prices using

the observed prices

for similar securities

to determine the

fair value of

its securities.
Changes in the fair values, as

a result of deteriorating economic conditions

and credit spread changes, should only



be
temporary.

Further,

management

believes

that

the

Company's

other

sources

of

liquidity,

as

well

as

the

cash

flow

from
principal and interest

payments from

its securities portfolio,

reduces the

risk that losses

would be realized

as a result

of a
need to sell securities to obtain liquidity.
Segment Reporting
Management monitors the revenue streams for

all its various products and services. The identifiable segments



are not
material

and

operations

are

managed

and

financial

performance

is

evaluated

on

an

overall

Company-wide

basis.
Accordingly, all

the financial service

operations are

considered by

management to be

aggregated in one

reportable operating
segment.
Results of Operations
General
The following

tables present

selected balance

sheet, income

statement, and

profitability ratios

for the

dates indicated
(in thousands, except ratios):
As of December 31,
2022
2021
Consolidated Balance Sheets:
Total

assets
$
2,085,834
$
1,853,939
Total

loans
(1)
$
1,507,338
$
1,190,081
Total

deposits
$
1,829,281
$
1,590,379
Total

stockholders' equity
$
182,428
$
203,897
(1)

Loan amounts include deferred fees/costs.
Years Ended December 31,
2022
2021
Consolidated Statements of Operations:
Net interest income before provision for credit losses
$
63,661
$
52,496
Total

non-interest income
$
5,228
$
10,698
Total

non-interest expense
$
39,309
$
35,677
Net income

$
20,141
$
21,077
Net income (loss) available to common stockholders
$
20,141
$
(70,585)
Profitability:
Efficiency ratio
57.06%
56.31%
Net interest margin

3.38%
3.26%
The Company's results

of operations depend

substantially on net

interest income and

non-interest income. Other



factors
contributing to the

results of operations

include our provision

for credit losses,

non-interest expense, and



the provision for
income taxes.
  Table of Contents


48

USCB Financial Holdings, Inc.



2022 10-K

Net income

for the

year ended

December 31, 2022

was $20.1 million,

compared with

net income

of $21.1 million

for
the same

period in

2021. The Company

reported net

income per

diluted share

for the

year ended

December 31, 2022

of
$1.00 compared

to net

loss per diluted

share for

the same

period in 2021

of $6.72. The

net loss per

diluted share

for the
year ended 2021 was

attributable to the one-time

reduction in net income

available to common stockholders



reflecting the
exchange and

redemption

of the

Class

C and

Class

D preferred

shares. During

the third

quarter of

2021,

the Company
completed

an

exchange

of

the

outstanding

preferred

shares

for

Class A

common

shares

and

thereafter

redeemed

the
remaining outstanding

preferred shares,

at a

liquidation value

that exceeded

book value,

causing a

one-time reduction

in
net income available

to common stockholders

of $89.6 million.

At December 31, 2022,

there were no

issued and outstanding
preferred shares.

Adjusted

diluted

net

income

per

common

share

(non-GAAP)

for

the

year

ended

December 31,

2022

was

$1.00
compared to adjusted net income per diluted share (non-GAAP) for the same period
in 2021 of $1.81. Adjusted net income
per

diluted

share

(non-GAAP)

for

the

year

ended

2021

excludes

the

$89.6 million

one-time

accounting

impact

of

the

exchange and redemption of the



preferred shares. To see

a reconciliation of non-GAAP

measures,

to GAAP measures refer
to section below "Reconciliation and Management Explanatio

n

of Non-GAAP Financial Measures".



Net Interest Income
Net interest

income is

the difference

between interest

earned on

interest earning

assets and

interest incurred

on interest-
bearing liabilities

and is

the primary

driver of

core earnings.

Interest

income is

generated from

interest and

dividends on
interest-earning

assets,

including

loans,

investment

securities

and

other

short-term

investments.

Interest

expense

is
incurred

from

interest

paid

on

interest-bearing

liabilities,

including

interest-bearing

deposits,

FHLB

advances

and

other
borrowings.
To evaluate net

interest income, we

measure and monitor

(i) yields on

loans and other

interest-earning assets, (ii)

the
costs of deposits

and other funding

sources, (iii) net

interest spread, and

(iv) net interest margin.

Net interest spread is

equal

to the difference between yields earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is



equal to

the annualized

net interest

income

divided by

average interest

-earning assets.

Because

non-interest-

bearing sources of funds, such as non-interest-bearing deposits

and stockholders'



equity, also fund interest-earning assets,
net interest margin includes the benefit of these non-interest-bearing

sources.
Changes in

the market

interest rates and

interest rates

we earn on

interest-earning assets

or pay on

interest-bearing
liabilities, as well

as the volume and

types of interest-earning

assets and interest-bearing and



non-interest-bearing liabilities,
are usually the

largest drivers of

periodic changes in

net interest spread,

net interest margin

and net interest

income. The
ALCO has in place

asset-liability management techniques



to manage major

factors that affect

net interest income

and net
interest margin.
















































































































































  Table of Contents


49

USCB Financial Holdings, Inc.

2022 10-K

The following table contains information related

to average balance sheet, average yields



on assets, and average costs
of liabilities for the periods indicated (in thousands):
Years Ended December 31,
2022
2021
Average
Balance
Interest
Yield/Rate

Average
Balance
Interest
Yield/Rate

Assets
Interest-earning assets:
Loans
(1)
$
1,341,693
$
60,825
4.53
%
$
1,116,142
$
48,730
4.37
%
Investment securities
(2)
470,508
9,346
1.99
%
403,677
7,886
1.95
%
Other interest earnings assets
70,873
929
1.31
%
92,430
106
0.11
%
Total

interest-earning assets
1,883,074
71,100
3.78
%
1,612,249
56,722
3.52
%
Non-interest earning assets
107,536


89,409


Total

assets
$
1,990,610


$
1,701,658

Liabilities and stockholders' equity

Interest-bearing liabilities:




Interest-bearing demand deposits
$
64,835
86
0.13
%
$
52,379
59
0.11
%
Saving and money market deposits
803,426
5,173
0.64
%
619,810
2,082
0.34
%
Time deposits
220,319
1,509
0.68
%
235,127
1,531
0.65
%
Total

interest-bearing deposits
1,088,580
6,768
0.62
%
907,316
3,672
0.40
%
Borrowings and repurchase agreements
38,463
671
1.74
%
36,000
554
1.54
%
Total

interest-bearing liabilities
1,127,043
7,439
0.66
%
943,316
4,226
0.45
%
Non-interest bearing demand deposits
645,366


547,116


Other non-interest-bearing liabilities
30,449


27,142


Total

liabilities
1,802,858


1,517,574


Stockholders' equity
187,752


184,084


Total

liabilities and stockholders' equity
$
1,990,610


$
1,701,658


Net interest income
$
63,661

$
52,496

Net interest spread
(3)

3.12
%
3.07
%
Net interest margin
(4)


3.38
%
3.26
%
(1)

Average loan balances include non-accrual loans. Interest income

on loans includes accretion of deferred



loan fees, net of deferred loan costs.
(2)

At fair value except for securities held to maturity. This amount includes



FHLB stock.
(3)

Net interest spread is the average yield on

total interest-earning assets minus the average



rate on total interest-bearing liabilities.
(4)

Net interest margin is the ratio of net interest



income to total interest-earning assets.
Net interest income before the provision

for credit losses was $63.7

million for the year ended December



31, 2022, an
increase of $11.2 million

or 21.3%, from

$52.5 million for the

year ended December 31,

2021. This increase

was primarily
attributable to higher income from a larger loan portfolio and

higher yield on earning assets.

Included with loan interest income are PPP fees totaling $1.6 million and $4.5 million for the



year ended December 31,
2022 and 2021, respectively.

PPP loan fees are fully recognized upon forgiveness. As of December 31, 2022, we had

$1.3


million of PPP loans remaining in our portfolio.
The net

interest margin

was 3.38%

for the

year ended

December 31, 2022

and 3.26%

for the

year ended

2021. The
overall and individual

yields for interest-bearing

assets and interest

-bearing liabilities

both increased in

2022 compared to
2021 due primarily to increases

in market rates of interest.
Provision for Credit Losses
ACL represents

probable

incurred

losses

in

our

portfolio. We

maintain

an

adequate ACL

that

can

mitigate

probable
losses incurred

in the

loan portfolio.

The ACL is increased

by the

provision for

credit losses

and is

decreased by

charge-
offs,

net

of

recoveries

on

prior

loan

charge-offs.

There

are

multiple

credit

quality

metrics

that

we

use

to

base

our
determination of

the amount

of the ACL

and corresponding

provision for

credit losses.

These credit

metrics

evaluate the
credit

quality

and

level

of

credit

risk

inherent

in

our

loan

portfolio,

assess

non-performing

loans

and

charge-offs

levels,

considers statistical trends and economic conditions and other



applicable factors.





















































  Table of Contents


50

USCB Financial Holdings, Inc.



2022 10-K

Provision for credit loss

for the year ended

December 31, 2022, was

$2.5 million compared to

a net reduction of

$160
thousand in provision

expense for

the same period

in 2021. The

primary driver of

the increase was

loan growth. The ACL
as a percentage of total loans was 1.16%

at December 31, 2022 compared to 1.27% at December



31, 2021.
See "Allowance

for Credit

Losses"

below for

further discussion on

how the

ACL was

calculated for

the periods

presented.

Non-Interest Income
Net interest income

and other types of

recurring non-interest

income are generated

from our operations.

Our services and products generate service charges and fees, mainly from our depository accounts.



We also generate income from gain
on sale of

loans though

our swap and

SBA programs. In addition,

we own insurance

on several employees

and generate
income reflecting the increase in the cash surrender value

of these policies.
The following table presents the components of non-interest

income for the dates indicated (in thousands):
Years Ended December 31,
2022
2021
Service fees
$
4,010
$
3,609
Gain (loss) on sale of securities available for sale, net
(2,529)
214
Gain on sale of loans held for sale, net
891
1,626
Gain on sale of premises and equipment, net
-
983
Loan settlement
161
2,500
Other non-interest income
2,695
1,766
Total

non-interest income
$
5,228
$
10,698
Non-interest income

for the

year ended

December 31, 2022

was $5.2

million compared

to $10.7

million for

the same
period in 2021. This decrease was primarily driven by $2.5

million loss on sale of securities in 2022 and one-time items that
generated income in 2021 but not in 2022. One-time items in 2021 include a $2.5
million interest recovery related to a prior
lending customer

and a gain

on the

sale of

a previously

owned building

for $983

thousand. In

the fourth

quarter of

2022,
the

Company

executed

a

portfolio

restructuring

strategy

which

resulted

in

a

sale

of

$17.0

million

of

its

lower-yielding
available-for-sale

securities

for

a

loss

of

$2.0

million.

Proceeds

from

the

sale

will

be

reinvested

in

securities

and

loans

currently yielding higher than the securities that were sold. Non-Interest Expense The following table presents the components of non-interest



expense for the dates indicated (in thousands):
Years Ended December 31,
2022
2021
Salaries and employee benefits
$
23,943
$
21,438
Occupancy
5,058
5,257
Regulatory assessment and fees
930
783
Consulting and legal fees
1,890
1,454
Network and information technology services
1,806
1,466
Other operating
5,682
5,279
Total

non-interest expense
$
39,309
$
35,677
Non-interest expense for

the year ended

December 31, 2022

increased $3.6 million

or 10.2%, compared

to the same
period in

2021. The

increase is

primarily due

to an

increase in

salaries and

employee benefit

costs of

$2.5 million for

the
year ended

December 31, 2022,

compared to

the same

period in 2021.

The headcount

of full-time

equivalent employees
increased

from

187

at

December 31,

2021

to

191

at

December 31,

2022.

Further,

consulting

and

legal

fees

and

other
operating expenses

increased $436

thousand or

30.0% and

$403 thousand

or 7.6%,

respectively, during

the year

ended
December 31,

2022 compared

to the

same

period in

2021

due to

our first

full

year of

operations

as a

publicly

reporting
company.

The increase in salaries and employee

benefits, consulting and legal fees,

and other operating costs has



enabled
us to support recent growth

and has provided us

with the necessary technology and

required professionals to execute



our
growth strategy.





































































































  Table of Contents


51

USCB Financial Holdings, Inc.

2022 10-K



Provision for Income Tax
Fluctuations in the effective tax rate reflect the effect of the differences in
the inclusion or deductibility of certain income
and expense for income tax purposes.

Therefore, future decisions on the investments we



choose will affect our effective tax
rate. Changes in the

cash surrender

value of bank-owned

life insurance policies

for key employees,

purchasing municipal
bonds, and overall taxable income will be important elements

in determining our effective tax rate.
Income

tax expense

for the

year ended

December 31,

2022 was

$6.9 million,

compared

to $6.6 million

for

the

year

ended December 31, 2021. The effective

tax rate for the year

ended December 31, 2022 was 25.6%



and for the year

ended
December 31, 2021 was 23.8%.
For a further discussion

on income taxes, see

Note 6 "Income Taxes"

to the Consolidated Financial

Statements in this
Annual Report on Form 10-K.
Rate/Volume Analysis
The

table

below

sets

forth

information

regarding

changes

in

interest

income

and

interest

expense

for

the

periods
indicated (in thousands).

For each category of

interest-earning assets and interest-bearing liabilities,



information is provided
on changes attributable to (i) changes in rate (changes in rate multiplied by
old volume); (ii) changes in volume (changes in
volume multiplied by old rate); and (iii) changes in rate-volume (change in

rate multiplied by change in volume). Changes in
rate-volume are proportionately allocated between rate and volume

variance.


Years Ended 2022 vs. 2021
Years Ended 2021 vs. 2020
Increase (decrease) due to change in
Increase (decrease) due to change in
Volume
Rate
Net
Change
Volume
Rate
Net
Change
Interest-earning assets:
Loans
(1)
$
9,847
$
2,248
$
12,095
$
4,091
$
(2,439)
$
1,652
Investment securities
(2)
1,306
154
1,460
5,288
(2,650)
2,638
Other interest earnings assets
(25)
848
823
(51)
(150)
(201)
Total increase (decrease) in interest income
$
11,128
$
3,250
$
14,378
$
9,328
$
(5,239)
$
4,089
Interest-bearing liabilities:
Interest-bearing demand deposits
$
14
$
13
$
27
$
$19
$
(118)
$
(99)
Saving and money market deposits
617
2,474
3,091
960
(1,973)
(1,013)
Time deposits
(96)
74
(22)
(704)
(2,474)
(3,178)
Borrowings and repurchase agreements
38
79
117
(321)
(199)
(520)
Total increase (decrease) in interest expense
572
2,641
3,213
(46)
(4,764)
(4,810)
Increase (decrease) in net interest income
$
10,556
$
609
$
11,165
$
9,374
$
(475)
$
8,899
(1)

Average loan balances include non-accrual loans. Interest income

on loans includes accretion of deferred



loan fees, net of deferred loan costs.
(2)

At fair value except for securities held to maturity. This amount includes FHLB



stock.
Both average yields on

interest earning assets

and average rates

paid on interest

bearing liabilities increased

in 2022
as a compared to 2021, reflecting the changes in the

macro interest rate environment.
Analysis of Financial Condition
Total

assets at December 31, 2022, were $2.1 billion, an increase of $231.9 million, or 12.5%, over total assets of $1.9 billion at

December 31, 2021. Total loans increased

$317.3 million,

or 26.7%,

to $1.5

billion at

December 31, 2022 compared
to

$1.2

billion

at

December 31,

2021.

The

increase

in

loans

includes

purchased

loans

totaling

$70.2

million

including

deferred fees. Total deposits



increased by $238.9 million, or 15.0%, to $1.8 billion at December 31, 2022
compared to $1.6
billion at December 31, 2021.
Investment Securities
The investment portfolio

is used and

managed to provide

liquidity through cash

flows, marketability

and, if necessary,
collateral for

borrowings. The

investment portfolio

is also

used as

a tool

to manage

interest rate

risk and

the Company's
capital market risk exposure. The

operating philosophy of the portfolio is

to maximize the Company's profitability,

taking into consideration the Company's risk appetite and tolerance, manage the assets composition



and diversification, and maintain
adequate risk-based capital ratios.
  Table of Contents


52

USCB Financial Holdings, Inc.



2022 10-K

The

investment

portfolio

is

managed

in

accordance

with

the

Asset

and

Liability

Management

("ALM")

policy,

which
includes an

investment guideline,

approved by

the Board.

Such policy

is reviewed

at least

annually or

more frequently

if
deemed

necessary,

depending

on market

conditions and/or

unexpected

events.

The

investment

portfolio composition

is
subject to change

depending on the

funding and liquidity

needs of the

Company, and the interest risk

management objective directed by the ALCO. The portfolio of investments can be used to modify the duration of



the balance sheet. The allocation
of cash into

securities takes

into consideration

anticipated future cash

flows (uses

and sources) and

all available sources
of credit.
Our

investment

portfolio

consists

primarily

of

securities

issued

by

U.S.

government-sponsored

agencies,

agency
mortgage-backed securities,

collateralized mortgage

obligation securities,

municipal securities,

and other

debt securities, all with varying contractual maturities and coupons. Due to the optionality embedded in these securities, the final maturities do not



necessarily represent the

expected life of

the portfolio. Some

of these

securities will be

called or paid

down depending
on capital market conditions and expectations. The investment portfolio is
regularly reviewed by the Chief Financial Officer,
Treasurer,

or the

ALCO of

the Company

to ensure

an appropriate

risk and

return profile

as well

as for

adherence to

the
investment policy.
As of December

31, 2022, the investment portfolio consisted of available-for-sale ("AFS") and held-to-maturity



("HTM")
debt securities.

During the third quarter of 2022, there were 26 investment securities that was



transferred from AFS to HTM
with an amortized cost basis and fair value amount

of $74.4 million and $63.8 million, respectively.



On the date of transfer,
these securities

had a

total net

unrealized loss

of $10.6

million. The

transfer of

the debt

securities from

the AFS

to HTM
category was

made at

fair value

at the

date of

transfer.

The unrealized

gain or

loss

at the

date of

transfer is

retained in
accumulated other

comprehensive income

and in

the carrying

value of

the HTM

securities. Such

amounts are

amortized

over the remaining life of the security.

There was no impact to net income on the date of transfer. The book value of the AFS securities is adjusted monthly

for unrealized gain or loss as a valuation allowance,



and any
gain

or

loss

is

reported

on

an

after-tax

basis

as

a

component

of

other

comprehensive

income

in

stockholders'

equity.
Periodically,

we

may

need

to

assess

whether

there

have

been

any

events

or

unexpected

economic

circumstances

to
indicate that

a security

on which

there is

an unrealized

loss is

impaired on

an other-than-temporary

basis ("OTTI").

If the
impairment is

deemed to

be permanent,

an analysis

would be made

considering many

factors, including

the severity

and

duration of the impairment, the severity

of the event, our intent and

ability to hold the security for



a period of time sufficient
for a

recovery in

value, recent

events specific

to the

issuer or

industry,

any related

credit events,

and for

debt securities,
external

credit

ratings

and

recent

downgrades

related

to

deterioration

of

credit

quality.

Securities

on

which

there

is

an
unrealized loss

that is

deemed to

be OTTI

are written

down to fair

value, with

the write-down

recorded as

a realized

loss
under line item

"Gain (loss) on

sale of securities

available-for-sale, net" of

the Consolidated Statements

of Operations. As
of

December 31,

2022, there

are no

securities

which

management

has classified

as

OTTI.

For further

discussion

of

our
analysis

on

impaired

investment

securities

for

OTTI,

see

Note 2

"Investment

Securities"

to

the

Consolidated

Financial
Statements in this Annual Report on Form 10-K.
AFS and HTM investment securities

in aggregate decreased $105.4 million or 20.1%



to $418.8 million at December 31,
2022 from $524.2

million at

December 31, 2021.

Investment securities

decreased over the

past year as

repayments from
securities were

allocated to

fund loan

growth.

Management reinvested

the repayments

of securities

and income

from the
sale of securities into higher

yielding loans. As of December

31, 2022, securities with a

market value of $49.0 million



were
pledged to secure

public deposits.

As of December

31, 2022, the

Company did

not have any

tax-exempt securities

in the
portfolio.






















































































































































































































































  Table of Contents


53

USCB Financial Holdings, Inc.



2022 10-K

The

following

table

presents

the

amortized

cost

and

fair

value

of

investment

securities

for

the

dates

indicated

(in
thousands):
December 31, 2022
December 31, 2021
Available-for-sale:
Amortized
Cost
Fair Value
Amortized
Cost
Fair Value
U.S. Government Agency
$
10,177
$
8,655
$
10,564
$
10,520
Collateralized mortgage obligations
118,951
95,541
160,506
156,829
Mortgage-backed securities - Residential
73,838
60,879
120,643
118,842
Mortgage-backed securities - Commercial
32,244
27,954
49,905
50,117
Municipal securities
25,084
18,483
25,164
24,276
Bank subordinated debt securities
15,964
14,919
27,003
28,408
Corporate bonds
4,037
3,709
12,068
12,550
$
280,295
$
230,140
$
405,853
$
401,542
Held-to-maturity:
U.S. Government Agency
$
44,914
$
39,062
$
34,505
$
33,904
U.S. Treasury
9,841
9,828
-
-
Collateralized mortgage obligations
68,727
60,925
44,820
43,799
Mortgage-backed securities - Residential
42,685
38,483
26,920
26,352
Mortgage-backed securities - Commercial
11,442
10,777
3,103
3,013
Corporate bonds
11,090
10,013
13,310
13,089
$
188,699
$
169,088
$
122,658
$
120,157
The following

table shows

the weighted

average yields,

categorized by

contractual maturity,

for investment

securities

as of December 31, 2022 (in thousands, except ratios):



Within 1 year
After 1 year through
5 years
After 5 years through
10 years
After 10 years
Total
Amortized
Cost
Yield
Amortized
Cost
Yield
Amortized
Cost
Yield
Amortized
Cost
Yield
Amortized
Cost
Yield
Available-for-sale:
U.S. Government Agency
$
-
-
$
-
-
$
-
-
$
10,177
2.31%
$
10,177
2.31%
Collateralized mortgage obligations
-
-
-
-
-
-
118,951
1.57%
118,951
1.57%
MBS - Residential
-
-
-
-
-
-
73,838
1.65%
73,838
1.65%
MBS - Commercial
-
-
-
-
-
-
32,244
2.01%
32,244
2.01%
Municipal securities

-
-
-
-
1,000
2.05%
24,084
1.72%
25,084
1.74%
Bank subordinated debt securities
-
-
-
-
15,964
4.76%
-
-
15,964
4.76%
Corporate bonds
-
-
4,037
2.50%
-
-
-
-
4,037
2.50%
$
-
-
$
4,037
2.50%
$
16,964
4.60%
$
259,294
1.69%
$
280,295
1.88%
Held-to-maturity:
U.S. Government Agency

$
-
-
7,902
1.03%
20,354
1.46%
16,658
1.85%
44,914
1.53%
U.S. Treasury
9,841
4.49%
-
-
-
-
-
-
9,841
4.49%
Collateralized mortgage obligations
-
-
-
-
-
-
68,727
1.66%
68,727
1.66%
MBS - Residential
-
-
4,554
1.84%
5,950
1.74%
32,181
2.12%
42,685
2.04%
MBS - Commercial
-
-
-
-
3,088
1.62%
8,354
1.69%
11,442
1.67%
Corporate bonds
1,515
2.25%
9,575
2.79%
-
-
-
-
11,090
2.71%
$
11,356
4.19%
$
22,031
1.96%
$
29,392
1.53%
$
125,920
1.81%
$
188,699
1.92%
Loans
Loans are

the largest

category of

interest-earning assets

on the

Consolidated

Balance Sheets,

and usually

provides

higher yields than the remainder of the Company's

interest-earning assets. Higher yields typically carry



inherent credit and
liquidity risks in

comparison to lower

yielding assets. The

Company manages and

mitigates such risks

in accordance with
the credit and ALM policies, risk tolerance and balance

sheet composition.








































































































































































  Table of Contents


54

USCB Financial Holdings, Inc.

2022 10-K

The following table shows the loan portfolio composition

as of the dates indicated (in thousands):

December 31, 2022
December 31, 2021
Total
Percent of
Total
Total
Percent of
Total
Residential Real Estate
$
185,636
12.3
%
$
201,359
16.9
%
Commercial Real Estate
970,410
64.4
%
704,988
59.2
%
Commercial and Industrial
126,984
8.4
%
146,592
12.3
%
Foreign Banks
93,769
6.2
%
59,491
5.0
%
Consumer and Other

130,429
8.7
%
79,229
6.6
%
Total

gross loans
1,507,228
100.0
%
1,191,659
100.0
%
Less: Unearned income
(110)
1,578
Total

loans net of unearned income
1,507,338
1,190,081
Less: Allowance for credit losses
17,487
15,057
Total

net loans
$
1,489,851

$
1,175,024
Tot

al gross loans increased by $315.6 million or 26.5% at December

31, 2022 compared to December 31, 20211.



The
most significant

growth was

in the

commercial real

estate and

consumer

and other

loan pools,

offset

by a

decline in

the

residential real estate and commercial and industrial loan pools. Consumer



and other loans increased primarily as result of
organic

growth

from

our

yacht

lending

business

vertical

created

in

January

2022.

Commercial

and

industrial

loans

decreased primarily because of continuing PPP loan forgiveness



as expected.
Other

than

the

shifts

note

above,

we

do

not

expect

any

significant

changes

over

the

foreseeable

future

in

the
composition

of

our

loan

portfolio

or

in

our

emphasis

on

commercial

real

estate

lending.

Our

loan

growth

strategy

since

inception has been reflective of the market in which we

operate and of our strategic plan as approved by the



Board.
The

growth

experienced

over

the

last

couple

of

years

is

primarily

due

to

implementation

of

our

relationship-based
banking

model

and

the

success

of

our

relationship

managers

in

competing

for

new

business

in

a

highly

competitive

metropolitan area. Many of our

larger loan clients have lengthy

relationships with members of our senior



management team
or our relationship managers that date back to former

institutions.

From a

liquidity perspective,

our loan

portfolio provides

us with

additional

liquidity due

to repayments

or unexpected
prepayments.

The

following

table

shows

maturities

and

sensitivity

to

interest

rate

changes

for

the

loan

portfolio

at
December 31, 2022 (in thousands):
Due in 1 year or
less
Due in 1 to 5
years
Due after 5 to 15
years
Due after 15
years
Total
Residential Real Estate
$
16,199
$
9,411
$
81,858
$
78,168
$
185,636
Commercial Real Estate
69,565
166,885
724,288
9,672
970,410
Commercial and Industrial
9,000
29,688
47,480
40,816
126,984
Foreign Banks
93,769
-
-
-
93,769
Consumer and Other
2,553
2,527
9,060
116,289
130,429
Total

gross loans
$
191,086
$
208,511
$
862,686
$
244,945
$
1,507,228
Interest rate sensitivity:
Fixed interest rates
$
160,781
$
127,603
$
144,441
$
142,813
$
575,638
Floating or adjustable rates
30,305
80,908
718,245
102,132
931,590
Total

gross loans
$
191,086
$
208,511
$
862,686
$
244,945
$
1,507,228
The information

presented

in the

table above

is based

upon the

contractual maturities

of the

individual

loans, which
may be

subject to

renewal at

their contractual

maturity.

Renewals will

depend on

approval by

our credit

department

and
balance sheet

composition at the

time of the

analysis, as

well as

any modification of

terms at

the loan's maturity. Additionally,
maturity

concentrations,

loan

duration,

prepayment

speeds

and

other

interest

rate

sensitivity

measures

are

discussed,

reviewed, and analyzed by the ALCO. Decisions on term

rate modifications are discussed as well.



As of

December 31,

2022, approximately

61.8%

of

the loans

have adjustable/variable

rates

and

38.2%

of

the loans
have fixed rates.

The adjustable/variable

loans re-price to

different benchmarks

and tenors in different

periods of time.

By

contractual characteristics, there are no

material concentrations on anniversary repricing. Additionally, it is



important to note
























































































  Table of Contents


55

USCB Financial Holdings, Inc.



2022 10-K

that most

of our

loans have

interest rate

floors. This

embedded option

protects the

Company from

a decrease

in interest
rates and positions us to gain in the scenario of higher interest

rates.
Asset Quality

Our asset quality grading

analysis estimates the capability of

the borrower to

repay the contractual obligation of



the loan
agreement as scheduled or at all. The Company's internal credit risk grading
system is based on experiences with similarly
graded loans. Internal

credit risk

grades are evaluated

at least annually,

or more frequently

if deemed necessary.

Internal
credit

risk

ratings

may

change

based

on

management's

assessment

of

the

results

from

the

annual

review,

portfolio

monitoring and other developments observed with borrowers.

The internal credit risk grades used by the Company to

assess the credit worthiness of a loan are shown below: Pass - Loans indicate different levels of satisfactory financial

condition and performance.

Special Mention

- Loans classified as special mention have a potential weakness



that deserves management's
close attention. If left uncorrected, these potential weaknesses

may result in deterioration of the repayment
prospects for the loan or of the institution's

credit position at some future date.

Substandard

- Loans classified as substandard are inadequately protected



by the current net worth and paying
capacity of the obligator or of the collateral pledged, if

any. Loans so classified



have a well-defined weakness or
weaknesses that jeopardize the liquidation of the debt.

They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are

not corrected.

Doubtful

- Loans classified as doubtful have all the weaknesses



inherent in those classified at substandard, with
the added characteristic that the weaknesses make collection or

liquidation in full on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss

- Loans classified as loss are considered uncollectible. Loan credit exposures by internally assigned grades are

as follows for the dates indicated (in thousands):

December 31, 2022
Pass
Special Mention
Substandard
Doubtful
Total
Residential Real Estate
$
185,636
$
-
$
-
$
-
$
185,636
Commercial Real Estate
967,465
-
2,945
-
970,410
Commercial and Industrial
126,177
-
807
-
126,984
Foreign Banks
93,769
-
-
-
93,769
Consumer and Other

130,233
-
196
-
130,429
$
1,503,280
$
-
$
3,948
$
-
$
1,507,228
December 31, 2021
Pass
Special Mention
Substandard
Doubtful
Total
Residential Real Estate
$
196,778
$
-
$
4,581
$
-
$
201,359
Commercial Real Estate
703,349
1,222
417
-
704,988
Commercial and Industrial
146,039
-
553
-
146,592
Foreign Banks
59,491
-
-
-
59,491
Consumer and Other

79,005
-
224
-
79,229
$
1,184,662
$
1,222
$
5,775
$
-
$
1,191,659









































































































  Table of Contents


56

USCB Financial Holdings, Inc.

2022 10-K

Non-Performing Assets
The following table presents non-performing assets as

of December 31, 2022 and 2021 (in thousands, except

ratios):

2022

2021


Non-accrual loans, less non-accrual TDR loans
$
-
$
1,190
Non-accrual TDRs
-
-
Loans past due over 90 days and still accruing
-
-
Total

non-performing loans
-
1,190
Other real estate owned
-
-
Total

non-performing assets
$
-
$
1,190
Asset quality ratios:
-
-
Allowance for credit losses to total loans
1.16%
1.27%
Allowance for credit losses to non-performing loans
0.00%
1,265.00%
Non-performing loans to total loans
0.00%
0.10%
Non-performing

assets include

all loans

categorized as

non-accrual or

restructured,

impaired securities,

non-accrual
troubled

debt

restructurings

('TDRs"),

OREO

and

other

repossessed

assets.

Problem

loans

for

which

the

collection

or

liquidation in full is reasonably uncertain

are placed on a non-accrual status. This



determination is based on current existing
facts concerning

collateral values and

the paying

capacity of the

borrower. When the collection

of the

full contractual balance
is unlikely,

the loan

is placed

on non-accrual

to avoid

overstating the

Company's

income for

a loan

with increased

credit
risk.

If the

principal or

interest on

a commercial

loan becomes

due and

unpaid for

90 days

or more,

the loan

is placed

on
non-accrual status as of

the date it becomes

90 days past due and

remains in non-accrual

status until it meets

the criteria
for restoration to accrual status.

Residential loans, on

the other hand, are placed

on non-accrual status when

the principal
or interest

becomes due

and unpaid

for 120

days or

more and

remains in

non-accrual status

until it meets

the criteria

for
restoration

to

accrual

status.

Restoring

a

loan

to

accrual

status

is

possible

when

the

borrower

resumes

payment

of

all
principal and interest

payments for a period

of six months

and the Company

has a documented

expectation of repayment
of the remaining contractual principal and interest or the

loan becomes secured and in the process of collection.
A TDR is

a debtor that

is experiencing financial

difficulties and

the Company grants

a concession. This

determination

is performed during the annual review process or whenever problems



are surfacing regarding the client's ability to repay in
accordance with

the original

terms of

the loan

or line

of credit.

In general,

a borrower

that can

obtain funds

from sources
other than

the Company

at market

interest rates

at or

near those

for non-troubled

debt is

not involved

in a

troubled debt
restructuring.

The

concessions

are

given

to

the

debtor

in

various

forms,

including

interest

rate

reductions,

principal
forgiveness,

extension

of

maturity

date,

waiver,

or

deferral

of

payments

and

other

concessions

intended

to

minimize
potential losses.
The following tables present performing and non-performing

TDRs for the dates indicated (in thousands):
December 31, 2022
Accruing
Non-Accruing
Total
Residential Real Estate
$
7,206
$
-
$
7,206
Commercial Real Estate
393
-
393
Commercial and Industrial
82
-
82
Consumer and Other

196
-
196
$
7,877
$
-
$
7,877
December 31, 2021
Accruing
Non-Accruing
Total
Residential Real Estate
$
7,815
$
-
$
7,815
Commercial Real Estate
696
-
696
Commercial and Industrial
141
-
141
Consumer and Other

224
-
224
$
8,876
$
-
$
8,876

The Company had allocated $294 thousand and $360 thousand of specific allowances



for TDR loans at December 31,
2022 and 2021, respectively.

There was no commitment to lend additional funds to



these TDR customers.































































































































  Table of Contents


57

USCB Financial Holdings, Inc.

2022 10-K

Charge-offs on TDR loans for the years ended December 31,



2022 and 2021 were $0 and $18 thousand, respectively.
There were

no defaults

on TDR

loans at December

31, 2022

and 2021

within the

prior 12 months

.

The Company

did not
have any new TDR loans for the year ended December

31, 2022.
There were no TDRs or modifications due to COVID-19

as of December 31, 2022.

For further

discussion on

non-performing loans,

see Note

3 "Loans"

to the

Consolidated Financial

Statements in

this
Annual Report on Form 10-K.
Allowance for Credit Losses
In

determining

the

balance

of

the

allowance

account,

loans

are

pooled

by

product

segments

with

similar

risk

characteristics and management



evaluates the ACL on

each segment and on

a regular basis to maintain

the allowance at
an

adequate

level

based

on

factors

which,

in

management's

judgment,

deserve

current

recognition

in

estimating

credit
losses.

Such

factors

include

changes

in

prevailing

economic

conditions,

historical

loss

experience,

delinquency

trends,

changes in the composition and size of the loan portfolio and



the overall credit worthiness of the borrowers.
Additionally,

qualitative adjustments

are made to the

ACL when, based

on management's

judgment, there are

factors

impacting the allowance estimate not considered by the

quantitative calculations.

The following table presents ACL and net charge-offs to average loans by



type for the periods indicated (in thousands):
Residential
Real Estate
Commercial
Real Estate
Commercial
and Industrial
Foreign

Banks
Consumer
and Other
Total
December 31, 2022:












Beginning balance
$
2,498
$
8,758
$
2,775
$
457
$
569
$
15,057
Provision for credit losses
(1,179)
1,385
1,474
263
552
2,495
Recoveries
33
-
18
-
4
55
Charge-offs
-
-
(104)
-
(16)
(120)
Ending Balance

$
1,352
$
10,143
$
4,163
$
720
$
1,109
$
17,487
Average loans
$
193,368
$
842,914
$
127,473
$
81,421
$
96,517
$
1,341,693
Net charge-offs to average loans

(0.02)%

-

0.07%

-

0.01%

0.00%
December 31, 2021:






Beginning balance
$
3,408
$
9,453
$
1,689
$
348
$
188
$
15,086
Provision for credit losses
(919)
(695)
955
109
390
(160)
Recoveries
238
-
149
-
5
392
Charge-offs
(229)
-
(18)
-
(14)
(261)
Ending Balance

$
2,498
$
8,758
$
2,775
$
457
$
569
$
15,057
Average loans
$
212,867
$
654,723
$
153,763
$
52,187
$
42,602
$
1,116,142
Net charge-offs to average loans
-
-
(0.08)%
-
0.02%
(0.01)%




































































































  Table of Contents


58

USCB Financial Holdings, Inc.

2022 10-K

The

following

table

presents

ACL

by

type

and

its

individual

percentage

to

total

loans

for

the

periods

indicated

(in
thousands):
December 31,

2022
2021
Loan Category
Allowance
% of Loans in
Each Category to
Total Loans
Allowance
% of Loans in
Each Category to
Total Loans
Residential Real Estate
$
1,352
12.3
%
$
2,498
16.9
%
Commercial Real Estate

10,143
64.4
%
8,758
59.2
%
Commercial and Industrial
4,163
8.4
%
2,775
12.3
%
Foreign Banks
720
6.2
%
457
5.0
%
Consumer and Other
1,109
8.7
%
569
6.6
%
Total
$
17,487
100.0
%
$
15,057
100.0
%
Bank-Owned Life Insurance
At

December 31,

2022,

the

combined

cash

surrender

value

of

all

bank-owned

life

insurance

("BOLI")

policies

was
$42.8 million.

Changes

in

cash

surrender

value

are

recorded

in

non-interest

income

on the

Consolidated

Statements

of
Operations. In

2022, the Company

maintained BOLI

policies with

five insurance

carriers. The Company

is the beneficiary
of these policies.
Deposits
Customer deposits are the

primary funding source for

the Bank's growth.

Through our network of

banking centers, we
offer a competitive array of deposit

accounts and treasury management services designed



to meet our customers' business
needs. Our primary

deposit customers

are SMBs, and

the personal business

of owners and

operators of

these SMBs,

as

well as the retail/consumer relationships of the employees

of these businesses. Our focus on quality and customer

service

has created a strong brand recognition within

our depositors, which reflects in the composition



of our deposits; most of our
funding sources are core deposits. In addition to our banking centers network,

we developed business verticals to diversify
our portfolio in different specialty industries and

we offer public fund deposit products



to municipalities and public agencies
in our geographical footprint.

Furthermore, our

personal and

private banking

management

line of

business is

focused on

the needs

of the

owners
and operators of

our business customers,

offering a suite

of checking, savings,

money market and

time deposit accounts,
and utilizing superior

client service

to build and

expand client relationships.

A unique aspect

of our business

model is our
ability to offer correspondent services to banks

in Central America and the Caribbean.
The

following

table

presents

the

daily

average

balance

and

average

rate

paid

on

deposits

by

category

as

of
December 31, 2022 and 2021 (in thousands, except ratios):
Twelve Months Ended December 31,
2022
2021
Average Balance
Average Rate
Paid
Average Balance
Average Rate
Paid
Non-interest bearing demand deposits
$
645,366
0.00%
$
547,116
0.00%
Interest-bearing demand deposits
64,835
0.13%
52,379
0.11%
Saving and money market deposits
803,426
0.64%
619,810
0.34%
Time deposits
220,319
0.68%
235,127
0.65%
$
1,733,946
0.39%
$
1,454,431
0.25%
To
tal average deposits for the year ended December 31, 2022 was $1.7 billion,

an increase of $279.5 million,



or 19.2%
over total average

deposits of $1.5 billion

for the

same period in

2021. Our focus

on demand deposits

resulted in an

increase

in average balances of $98.3 million,

or 18.0%, in non-interest bearing demand deposits and an increase of $183.6 million, or 29.6%, in saving and money market deposits

when comparing the average balances for the



years ended December 31,
2022 and 2021.
The

uninsured

deposits

are

estimated

based

on

the

FDIC

deposit

insurance

limit

of

$250 thousand

for

all

deposit
accounts

at

the

Bank

per

account

holder.

Total

estimated

uninsured

deposits

were

$1.1

billion

and

$897.8 million

at











  Table of Contents


59

USCB Financial Holdings, Inc.

2022 10-K

December 31,

2022

and

2021,

respectively.

U.S.

Century

Bank

maintains

a

well-diversified

deposit

base.

Our

top

15
depositors only

hold 12%

of our

total portfolio.

As of

December 31,

2022, 39%

of our

deposits are

estimated to

be FDIC-
insured. Our public funds

are 11%

of total deposits and

are partially collateralized.

The estimated average account

size of
our deposit

portfolio is

$95 thousand.

Time

deposits with

balances of

$250 thousand

or more

totaled $122.9

million and
$119.4 million at December

31, 2022 and 2021, respectively.

Critical elements of our liquidity

risk management include: effective corporate governance consisting of



oversight by the
Board and

ALCO and

active involvement

by senior

management;

appropriate strategies,

policies, procedures,

and limits
used

to

identify

and

mitigate

liquidity

risk;

comprehensive

liquidity

risk

measurement

and

monitoring

systems

(including
assessments

of

the

current

and

prospective

cash

flows

or

sources

and

uses

of

funds)

that

are

commensurate

with

the

complexity and business activities of the Company; active management of intraday liquidity and collateral; an appropriately diverse mix



of existing

and potential

future funding

sources; adequate

levels of

highly liquid

marketable securities

free of
legal, regulatory, or operational impediments, that

can be used

to meet liquidity

needs in stressful

situations; comprehensive
contingency

funding

plans

that

sufficiently

address

potential

adverse

liquidity

events

and

emergency

cash

flow
requirements;

and

internal

controls and

internal

audit

processes

sufficient

to

determine

the

adequacy

of

the

institution's
liquidity risk management process.
We

expect

funds

to

be

available

from

several

basic

banking

activity

sources,

including

the

core

deposit

base,

the

repayment and maturity of loans and investment security

cash flows. Other potential funding sources include



federal funds
purchased, brokered

certificates of

deposit, listing

certificates of

deposit, Fed

funds lines

and borrowings

from

the FHLB
Atlanta. Accordingly, our liquidity resources were at sufficient levels to

fund loans and meet other



cash needs as necessary.
The following table shows scheduled maturities of uninsured

time deposits as of December 31, 2022 (in thousands):
Three months or less
$
10,669
Over three through six months
17,573
Over six though twelve months
29,891
Over twelve months
23,840
$
81,973
Borrowings
As

a

member

of

the

FHLB

Atlanta,

we

are

eligible

to

obtain

advances

with

various

terms

and

conditions.

This
accessibility of additional

funding allows us

to efficiently and

timely meet both

expected and unexpected

outgoing cash flows
and collateral needs without adversely affecting

either daily operations or the financial condition



of the Company.
Outstanding fixed-rate advances from the FHLB were at $46.0 million and $36.0
million, as of December 31, 2022, and
December 31, 2021,

respectively.

The weighted average

rate for outstanding

FHLB advances at

December 31, 2022

was

2.60%. Most of the advances are due in 2023.







































































  Table of Contents


60

USCB Financial Holdings, Inc.

2022 10-K

The following table presents the FHLB fixed rate advances



as of December 31, 2022 (in thousands):
At December 31, 2022
Interest Rate
Type of Rate
Maturity Date
Amount
2.05%
Fixed
March 27, 2025
$
10,000
1.07%
Fixed
July 18, 2025
6,000
1.04%
Fixed
July 30, 2024
5,000
0.81%
Fixed
August 17, 2023
5,000
4.17%
Fixed
January 13, 2023
20,000
$
46,000
At December 31, 2021
Interest Rate
Type of Rate
Maturity Date
Amount
0.81%
Fixed
August 17, 2023
$
5,000
1.04%
Fixed
July 30, 2024
5,000
2.05%
Fixed
March 27, 2025
10,000
1.91%
Fixed
March 28, 2025
5,000
1.81%
Fixed
April 17, 2025
5,000
1.07%
Fixed
July 18, 2025
6,000
$
36,000
We

have

also

established

Fed

Funds

lines

of

credit

with

our

upstream

correspondent

banks

to

manage

temporary
fluctuations in our daily

cash balances. As of December 31,

2022, there were no

outstanding balances under the Fed

Funds


line of credit.
Off-Balance Sheet Arrangements
We engage

in various financial

transactions in

our operations

that, under GAAP,

may not be

included on

the balance
sheet. To

meet the financing needs

of our customers we may

include commitments to extend



credit and standby letters

of
credit. To

a varying

degree, such

commitments

involve elements

of credit,

market,

and interest

rate risk

in excess

of the
amount recognized

in the

balance sheet.

We

use more

conservative credit

and collateral

policies in

making these

credit
commitments as we

do for on-balance sheet

items. We are not

aware of any accounting

loss to be

incurred by funding

these
commitments; however,

we maintain an allowance for

off-balance sheet credit risk

which is recorded under other

liabilities


on the Consolidated Balance Sheets.
Since commitments associated with letters of

credit and commitments to extend

credit may expire unused, the



amounts
shown do not necessarily

reflect the actual

future cash funding

requirements.

The following table

presents lending related
commitments outstanding as of December 31, 2022 and

2021 (in thousands):
2022
2021
Commitments to grant loans and unfunded lines of credit
$
95,461
$
134,877
Standby and commercial letters of credit
4,320
6,420
Total
$
99,781
$
141,297
Commitments to extend credit are agreements to lend funds to a client, as long
as there is no violation of any condition
established

in

the

contract,

for

a

specific

purpose.

Commitments

generally

have

variable

interest

rates,

fixed

expiration
dates or

other

termination

clauses

and may

require

payment

of

a fee.

Since many

of

the commitments

are expected

to
expire without being

fully drawn, the

total commitment

amounts disclosed

above do not

necessarily represent

future cash
requirements.
Unfunded lines of credit represent unused portions of credit facilities to our
current borrowers that represent no change
in credit risk in our portfolio. Lines

of credit generally have variable interest

rates. The maximum potential amount



of future
payments we could

be required to

make is represented

by the contractual

amount of

the commitment,

less the amount

of
any advances made.
Letters of credit are

conditional commitments

issued by us to guarantee

the performance of

a client to a third

party. In
the event of nonperformance by the

client in accordance with the terms

of the agreement with the third party,



we would be
required to fund

the commitment.

If the commitment

is funded, we

would be entitled

to seek

recovery from

the client from
the underlying collateral,

which can include

commercial real estate,

physical plant and

property, inventory, receivables, cash
or marketable securities.
  Table of Contents


61

USCB Financial Holdings, Inc.

2022 10-K

Asset and Liability Management Committee
The asset and liability management committee of our Company,

or ALCO, consists of members of senior management
and our Board. Senior management is responsible for

ensuring in a timely manner that Board



approved strategies, policies,
and procedures

for managing

and mitigating

risks are

appropriately executed

within the

designated lines

of authority

and
responsibility.
ALCO

oversees

the

establishment,

approval,

implementation,

and

review

of

interest

rate

risk,

management,

and

mitigation strategies, ALM related policies, ALCO procedures



and risk tolerances and appetite.
While some degree of interest

rate risk ("IRR") exposure is inherent

to the banking business, our ALCO



has established
sound risk management practices in place to identify,

measure, monitor and mitigate IRR exposures.
When assessing

the scope

of IRR

exposure

and

impact on

the consolidated

balance sheet,

cash

flows and

income
statement,

management

considers

both

earnings

and

economic

impacts.

Asset

price

variations,

deposits

volatility

and

reduced earnings or outright losses could adversely affect

the Company's liquidity,



performance, and capital adequacy.
Income simulations

are used

to assess

the impact

of changing

rates on

earnings under

different rates

scenarios and
time horizons.

These simulations

utilize both

instantaneous and

parallel changes

in the

level of

interest rates,

as well

as

non-parallel changes such as changing slopes (flat and steeping) and

twists of the yield curve, Static simulation models are based on current exposures and

assume a constant balance sheet with

no new growth. Dynamic simulation analysis is

also

utilized to have a

more comprehensive assessment



on IRR. This simulation

relies on detailed

assumptions outlined in

our

budget and strategic plan, and in assumptions regarding changes in



existing lines of business, new business, management
strategies and client expected behavior.
To

have

a

more

complete

picture

of

IRR,

the

Company

also

evaluates

the

economic

value

of

equity,

or

EVE.

This
assessment

allows

us

to

measure

the

degree

to

which

the

economic

values

will

change

under

different

interest

rate

scenarios. The economic value of equity approach focuses on

a longer-term time horizon and captures all



future cash flows
expected from existing assets and liabilities.

The economic value model utilizes a



static approach in that the analysis does
not incorporate new business; rather,

the analysis shows a snapshot in time of the risk



inherent in the balance sheet.
Market and Interest Rate Risk Management

According to our ALCO model, as of December 31, 2022, we were a

liability sensitive bank for year one modeling and asset sensitive for year two modeling.

Asset sensitivity indicates that our

assets generally reprice faster than

our liabilities, which results in a favorable impact to net interest income when market interest rates increase.



Liability sensitivity indicates
that our liabilities

generally reprice faster

than our assets,

which results in

a favorable impact

to net interest

income when
market interest

rates decrease.

Many assumptions

are used

to calculate

the impact

of interest

rate variations

on our

net
interest

income,

such

as

asset

prepayment

speeds,

non-maturity

deposit

price

sensitivity,

pricing

correlations,

deposit
truncations and decay rates, and key interest rate drivers.
Because of the inherent use

of these estimates and

assumptions in the model,

our actual results may,

and most likely
will, differ from static measures results. In addition, static measures like

EVEs do not include actions that management may
undertake to manage the risks in response to anticipated changes in interest
rates or client deposit behavior. As part of our
ALM strategy

and

policy,

management

has the

ability to

modify

the

balance sheet

to

either increase

asset

duration

and
decrease liability

duration to reduce

asset sensitivity,

or to decrease

asset duration and

increase liability duration

in order
to increase asset sensitivity.
According to our model, as of December 31, 2022, the NIM will remain fairly
stable for static rate scenarios (-400

basis
points:

+400

basis

points).

For

the

static

forecast

for

year

one,

the

estimated

NIM

will decrease

from

3.38%

base

case
scenario to 3.20%

under a +400-basis

points scenario. Additionally, utilizing an economic



value of equity, or EVE,

approach,
we analyze the

risk to capital

from the

effects of

various interest rate

scenarios through

a long-term

discounted cash flow
model. This

measures the

difference between

the economic

value of our

assets and

the economic

value of

our liabilities,
which is

a proxy for

our liquidation value.

According to our

balance sheet composition,

and as expected,

our model stipulates
that an increase

of interest

rates will have

a negative impact

on the EVE.

Results and analysis

are presented quarterly

to

the ALCO, and strategies are reviewed and refined. Additionally, in the last couple of quarters we

have been reducing our asset

sensitivity by extending asset duration.



This
has reduced our

NII volatility

for the first

and second year

in the analysis

and has

helped us to

maintain the NII

in accordance
with ALCO expectations.

  Table of Contents


62

USCB Financial Holdings, Inc.



2022 10-K

Liquidity

Liquidity is

defined as

a Company's capacity

to meet

its cash

and collateral

obligations at

a reasonable

cost. Maintaining an adequate level of liquidity depends on the Company's ability to efficiently meet both expected and



unexpected cash flow
and collateral needs without adversely affecting

either daily operations or the financial condition of



the Company.
Liquidity risk

is the

risk that

we will

be unable

to meet

our short-term

and long-term

obligations as

they become

due
because of an inability to

liquidate assets or obtain adequate funding on



acceptable terms. The Company's obligations, and
the funding sources used

to meet them, depend

significantly on our business mix, balance



sheet structure and composition,
credit quality of our assets and the cash flow profiles of

our on- and off-balance sheet obligations.
In managing

inflows and

outflows,

management

regularly monitors

situations that

can give

rise to

increased

liquidity
risk. These

include funding

mismatches, market

constraints on

the ability

to convert

assets (particularly

investments) into
cash or in

accessing sources

of funds (i.e.,

market liquidity),

and contingent

liquidity events. Management



presents to the
ALCO, on a quarterly basis, liquidity stress tests foll

owing the scenarios described in the Bank's

contingency funding plan.

Changes in macroeconomic conditions or exposure

to credit, market, operational, legal



and reputational risks, including
cybersecurity risk could also affect the Company

's liquidity risk profile unexpectedly



and are considered in the assessment
of liquidity and ALM framework.
Management has established

a comprehensive and

holistic management process for



identifying, measuring, monitoring
and

mitigating

liquidity

risk.

Due

to

its

critical

importance

to

the

viability

of

the

Company,

liquidity

risk

management

is

integrated into our risk management processes and ALM

policy.

Critical elements of our liquidity

risk management include: effective corporate governance consisting of



oversight by the
Board and

ALCO and

active involvement

by senior

management;

appropriate strategies,

policies, procedures,

and limits
used

to

identify

and

mitigate

liquidity

risk;

comprehensive

liquidity

risk

measurement

and

monitoring

systems

(including
assessments

of

the

current

and

prospective

cash

flows

or

sources

and

uses

of

funds)

that

are

commensurate

with

the

complexity and business activities of the Company; active management of intraday liquidity and collateral; an appropriately diverse mix



of existing

and potential

future funding

sources; adequate

levels of

highly liquid

marketable securities

free of
legal, regulatory, or operational impediments, that

can be used

to meet liquidity

needs in stressful

situations; comprehensive
contingency

funding

plans

that

sufficiently

address

potential

adverse

liquidity

events

and

emergency

cash

flow
requirements;

and

internal

controls and

internal

audit

processes

sufficient

to

determine

the

adequacy

of

the

institution's
liquidity risk management process.
We

expect

funds

to

be

available

from

several

basic

banking

activity

sources,

including

the

core

deposit

base,

the

repayment and maturity of loans and investment security

cash flows. Other potential funding sources include



federal funds
purchased, brokered

certificates of

deposit, listing

certificates of

deposit, Fed

funds lines

and borrowings

from

the FHLB
Atlanta. Accordingly, our liquidity resources were at sufficient levels to

fund loans and meet other

cash needs as necessary.












































































  Table of Contents


63

USCB Financial Holdings, Inc.



2022 10-K

Capital Adequacy
As

of

December 31,

2022,

the

Bank

was

well

capitalized

under

the

FDIC's

prompt

corrective

action

framework.
Additionally,

we follow the capital

conservation buffer

framework, and according

to our actual ratios

the Bank exceeds

the
capital conversation buffer

in all capital ratios

as of December

31, 2022. The

following table presents

the capital ratios

for

both the Bank and the Company at December 31, 2022



and 2021 (in thousands,

except ratios):
Actual
Minimum Capital
Requirements

To be Well Capitalized
Under Prompt Corrective
Action Provisions
Amount
Ratio
Amount
Ratio
Amount
Ratio
December 31, 2022:
Total

risk-based capital:
$
216,693
13.58
%
$
127,616
8.00
%
$
159,520
10.00
%
Tier 1 risk-based capital:
$
198,909
12.47
%
$
95,712
6.00
%
$
127,616
8.00
%
Common equity tier 1 capital:
$
198,909
12.47
%
$
71,784
4.50
%
$
103,688
6.50
%
Leverage ratio:
198,909
9.56
%
$
83,210
4.00
%
$
104,012
5.00
%
December 31, 2021:
(1)
Total

risk-based capital
$
186,735
14.92
%
$
100,125
8.00
%
$
125,157
10.00
%
Tier 1 risk-based capital
$
171,484
13.70
%
$
75,094
6.00
%
$
100,125
8.00
%
Common equity tier 1 capital
$
171,484
13.70
%
$
56,321
4.50
%
$
81,352
6.50
%
Leverage ratio
$
171,484
9.55
%
$
71,825
4.00
%
$
89,781
5.00
%
Impact of Inflation
Our Consolidated

Financial Statements

and related

notes have been

prepared in

accordance with

U.S. GAAP,

which
requires the

measurement of

financial position

and operating

results in

terms of

historical dollars,

without considering

the
changes

in

the

relative

purchasing

power

of

money

over

time

due

to

inflation.

The

impact

of

inflation

is

reflected

in

the

increased cost of operations.

Unlike most industrial companies,



nearly all our assets and

liabilities are monetary in

nature.
As a result,

interest rates have a

greater impact on our

performance than do the

effects of general levels

of inflation. Periods
of high inflation

are often accompanied

by relatively higher

interest rates, and

periods of low

inflation are accompanied

by

relatively lower interest rates.



As market interest rates

rise or fall in relation

to the rates earned

on loans and investments,
the

value

of

these

assets

decreases

or

increases

respectively.

Inflation

can

also

impact

core

non-interest

expenses

associated with delivering the Company's

services.

Recently Issued Accounting Pronouncements



Recently issued accounting

pronouncements are discussed

in Note 1 "Summary

of Significant Accounting

Policies" in
the Consolidated Financial Statements of this Annual Report

on Form 10-K.






































































































  Table of Contents


64

USCB Financial Holdings, Inc.

2022 10-K

Reconciliation and Management Explanation of Non



-GAAP Financial Measures
Management

has

included

these

non-GAAP

measures

because

it

believes

these

measures

may

provide

useful
supplemental information

for evaluating

the Company's

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 GA

AP,

and

are

not

necessarily

comparable

to non-GAAP
measures

that may

be presented

by other

companies.

The

Company believes

these

non-GAAP

measurements

are key
indicators of

the earnings power

of the Company.

The following

table reconciles

the non-GAAP

financial measurement

of

operating net income available to common stockholders

for the periods presented (in thousands,



except per share data):
As of and for the years ended December 31,
2022
2021
Pre-Tax Pre-Provision ("PTPP") Income:
Net income
$
20,141
$
21,077
Plus: Provision for income taxes
6,944
6,600
Plus: Provision for (recovery of) credit losses
2,495
(160)
PTPP income
$
29,580
$
27,517
PTPP Return on Average Assets:
PTPP income
$
29,580
$
27,517
Average assets
$
1,990,610
$
1,701,658
PTPP return on average assets

1.49%
1.62%
Operating Net Income:
Net income
$
20,141
$
21,077
Less: Net gain (loss) on sale of securities
(2,529)
214
Less: Tax effect

on sale of securities
641
(52)
Operating net income
$
22,029
$
20,915
Operating PTPP Income:
PTPP income
$
29,580
$
27,517
Less: Net gain (loss) on sale of securities
(2,529)
214
Operating PTPP Income
$
32,109
$
27,303
Operating PTPP Return on Average Assets:
Operating PTPP income
$
32,109
$
27,303
Average assets
$
1,990,610
$
1,701,658
Operating PTPP Return on average assets

1.61%

1.60%


Operating Return on Average Assets:
Operating net income
$
22,029
$
20,915
Average assets
$
1,990,610
$
1,701,658
Operating return on average assets

1.11%
1.23%






























































  Table of Contents


65

USCB Financial Holdings, Inc.



2022 10-K

Years Ended December 31,
2022
2021
Adjusted Net Income Available to Common Stockholders:
Net income (GAAP)
$
20,141
$
21,077
Less: Preferred dividends
-
2,077
Less: Exchange and redemption of preferred shares
-
89,585
Net income (loss) available to common stockholders (GAAP)
20,141
(70,585)
Add back: Exchange and redemption of preferred shares
-
89,585
Adjusted net income available to common stock (non-GAAP)
$
20,141
$
19,000
Weighted average shares outstanding:
Class A common stock

Basic
19,999,323
10,507,530

Diluted
20,176,838
10,507,530

Diluted EPS:
Class A common stock
Net income (loss) per diluted share (GAAP)
$
1.00
$
(6.72)
Add back: Exchange and redemption of preferred shares
-
8.53

Adjusted net income available to common stockholders per diluted share (non-GAAP)

$
1.00
$
1.81
Item 7A.

Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company,

we are not required to provide the information required by



this item.

  Table of Contents


66

USCB Financial Holdings, Inc.

2022 10-K

Latest news about USCB Financial Holdings, Inc.

Transcript : USCB Financial Holdings, Inc., Q1 2024 Earnings Call, Apr 26, 2024	04-26
USCB Financial Holdings, Inc. announces an Equity Buyback for 500,000 shares, representing 2.5% of its issued share capital.	04-25	CI
Earnings Flash (USCB) USCB FINANCIAL HOLDINGS Posts Q1 Revenue $17.6M, vs. Street Est of $17.2M	04-25	MT
Earnings Flash (USCB) U.S. CENTURY BANK Reports Q1 EPS $0.23, vs. Street Est of $0.21	04-25	MT
Tranche Update on USCB Financial Holdings, Inc.'s Equity Buyback Plan announced on January 27, 2022.	04-25	CI
USCB Financial Holdings, Inc. Reports Earnings Results for the First Quarter Ended March 31, 2024	04-25	CI
USCB Financial Holdings, Inc. Declares Quarterly Cash Dividend on Common Stock Payable on June 5, 2024	04-23	CI
USCB Financial Holdings, Inc. authorizes a Buyback Plan.	04-21	CI
Keefe, Bruyette & Woods Adjusts Price Target on U.S. Century Bank to $15 From $14, Maintains Outperform Rating	01-30	MT
USCB Financial Holdings Unveils Inaugural Dividend of $0.05 per Class A Common Share, Payable March 5 to Holders as of Feb. 15	01-30	MT
USCB Financial Holdings, Inc. Announces Inaugural Quarterly Cash Dividend for the First Quarter of 2024, Payable on March 5, 2024	01-29	CI
Raymond James Adjusts Price Target on U.S. Century Bank to $13 From $12, Keeps Outperform Rating	01-29	MT
Transcript : USCB Financial Holdings, Inc., Q4 2023 Earnings Call, Jan 26, 2024	01-26
Earnings Flash (USCB) USCB FINANCIAL HOLDINGS Reports Q4 Revenue $16.6M, vs. Street Est of $17.3M	01-25	MT
Earnings Flash (USCB) USCB FINANCIAL HOLDINGS Reports Q4 EPS $0.17, vs. Street Est of $0.22	01-25	MT
USCB Financial Holdings, Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2023	01-25	CI
Tranche Update on USCB Financial Holdings, Inc.'s Equity Buyback Plan announced on January 27, 2022.	01-25	CI
USCB Financial Holdings, Inc. Announces Management Changes	11-02	CI
Transcript : USCB Financial Holdings, Inc., Q3 2023 Earnings Call, Oct 27, 2023	23-10-27
Earnings Flash (USCB) U.S. CENTURY BANK Reports Q3 Revenue $17.1M, vs. Street Est of $16.8M	23-10-26	MT
Earnings Flash (USCB) U.S. CENTURY BANK Reports Q3 EPS $0.19, vs. Street Est of $0.20	23-10-26	MT
Tranche Update on USCB Financial Holdings, Inc.'s Equity Buyback Plan announced on January 27, 2022.	23-10-26	CI
USCB Financial Holdings, Inc. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	23-10-26	CI
USCB Financial Holdings, Inc.(NasdaqGM:USCB) dropped from S&P Global BMI Index	23-09-18	CI
Transcript : USCB Financial Holdings, Inc., Q2 2023 Earnings Call, Jul 28, 2023	23-07-28

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USCB Financial Holdings, Inc. is a bank holding company for U.S. Century Bank (the Bank). The Bank is a Florida state-chartered, non-Federal Reserve System member bank. It is focused on serving small-to-medium sized businesses (SMBs) and catering to the needs of local business owners, entrepreneurs, and professionals in South Florida. It provides a wide range of personal and business banking products and services. Its specialty banking offerings include small business administration (SBA) lending, yacht lending, homeowner association (HOA) services and global banking services. Its specialty banking offerings include Small Business Administration (SBA) lending, where the Company's SBA platform originates loans under Sections 7(a) and 504 of the SBA programs; yacht lending vertical provides yacht financing for larger vessels; Homeowner Association (HOA) services; Jurist Advantage and Private Client Group services, and Global Banking services.

Sector

Banks

Calendar

2024-07-24 - Q2 2024 Earnings Release (Projected)

Related indices

Russell 2000

More about the company

Income Statement Evolution

More financial data

Ratings for USCB Financial Holdings, Inc.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

12.09 USD

Average target price

13.5 USD

Spread / Average Target

+11.66%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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