USCB

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Surpassed the $3 billion total asset milestone, validating a disciplined relationship-driven growth strategy executed since recapitalization. Achieved record new loan production of $272 million, driven by broad-based demand across C&I, commercial real estate, and correspondent banking portfolios. Expanded net interest margin to 3.49% through a combination of seasoning loan yields and a deliberate shift toward lower-cost funding sources. Improved the efficiency ratio to 49.97% by leveraging a branch-light model, which is being optimized from 18 branches down to 9 following the scheduled closure of the Miami Lakes branch later this year. Capitalized on the resilient South Florida economy, which continues to benefit from high net migration, low unemployment (2.6%), and significant corporate relocations. Maintained pristine credit quality with non-performing loans at just 0.09% of total loans, despite aggressive portfolio growth. Successfully diversified the loan mix, reducing commercial real estate concentration from 63% in 2020 to 57% by mid-2026. Reiterated guidance for high single-digit to low double-digit net loan growth for the second half of 2026, supported by a robust pipeline. Projected a sustainable net interest margin range of 3.40% to 3.50% for the near term, assuming a relatively neutral interest rate risk profile. Anticipates repricing approximately $178 million in maturing loans through Q4 2026 from yields in the mid-5% range to current market rates around 6.25%. Expects non-interest expenses to rise at a measured pace as the bank continues to hire for new lending teams in Doral, Medley, and Hialeah. Forecasts a 25% effective tax rate for the remainder of the year following the utilization of current net operating losses. Executed a strategic exit from high-cost brokered CDs and non-relationship deposits, replacing them with lower-cost FHLB advances to optimize the balance sheet. Launched a new 1031 exchange deposit initiative in partnership with a Florida-based intermediary, generating $22 million in deposits within the first two months. Recorded a $1.3 million provision for credit loss, primarily driven by upfront recognition requirements for the quarter's record loan growth. Incurred a $312 thousand excise tax related to share repurchases executed in 2025, which contributed to a slight increase in non-interest expense. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects new loan production to moderate to $175-$190 million per quarter following the record Q2 performance. Yields on new production are expected to remain between 5.90% and 6.00%, influenced by the 180-day revolving nature of correspondent banking notes. The lower end of the 3.40-3.50% NIM guidance accounts for potential competitive pressure on deposit pricing and the need to grow the deposit book. Upside potential is supported by significant loan maturities in Q3 and Q4 that will reprice at substantially higher current market yields. Management views M&A-related disruption at larger competitors as a primary driver for talent and client migration to USCB. De novo banks are not seen as a significant threat due to their low lending limits; some have even approached USCB for loan participation opportunities.

Interested in USCB Financial Holdings, Inc.? Here are five stocks we like better. USCB Financial posted Q2 2026 net income of $9.1 million, or $0.49 per diluted share, up from $0.40 a year earlier, as total assets topped $3 billion and loan production hit a record $272 million. Net interest margin expanded to 3.49% and the efficiency ratio improved to 49.97% for the first time below 50%, helped by stronger loan yields, disciplined funding costs, and lower-cost deposit mix. Credit quality remained strong, with nonperforming loans falling to 0.09% of total loans and net charge-offs staying low at 0.05% of average loans, while management reiterated expectations for high-single-digit to low-double-digit net loan growth in the second half of 2026. USCB Financial (NASDAQ:USCB) reported second-quarter 2026 net income of $9.1 million, or $0.49 per diluted share, up from $0.40 per diluted share a year earlier. The company said the quarter was marked by record loan production, higher net interest margin, controlled expenses and continued low credit losses as total assets surpassed $3 billion. Chairman, President and CEO Luis de la Aguilera said the asset milestone reflected years of relationship-driven growth in South Florida. Total assets rose 11% year over year, while loans reached $2.3 billion, up 9.9%. Deposits totaled $2.5 billion, up 5% from the prior year. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Net interest income increased to $24.4 million, rising $2.3 million from the first quarter, according to Chief Financial Officer Rob Anderson. Net interest margin expanded 22 basis points sequentially to 3.49%, supported by higher loan yields, a shift toward higher-yielding earning assets and disciplined funding costs. Average loans increased $81.2 million from the first quarter, an annualized growth rate of 15%, while the loan portfolio yield increased to 6.20% from 6.11% in the first quarter. The company reported record new loan production of $272 million, with $116 million, or 42.6% of the quarterly total, closed during June. → GE Vernova Just Sent a Mixed AI Signal to Investors Correspondent Banking loans accounted for $83 million, or 30.6%, of quarterly loan production. Anderson said those loans are generally 180-day notes tied to SOFR and carried a 5.22% new-loan yield. Excluding Correspondent Banking activity, new loan production carried a weighted average yield of 6.20%. The company reiterated its expectation for high-single-digit to low-double-digit net loan growth during the second half of 2026. Anderson said third-quarter production could moderate from the record second-quarter level to roughly $175 million to $190 million, though he described the pipeline as robust. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? USCB said its loan production remained diversified, with 42% classified as commercial real estate and 58% as non-commercial real estate. De la Aguilera said commercial real estate concentration has declined from 63% of the portfolio in 2020 to 57% by mid-2026. Average deposits rose $61.9 million from the first quarter, or 10.2% on an annualized basis. Average noninterest-bearing demand deposits increased $47.4 million, or 32.5% annualized, pushing average DDA balances above $600 million. The improved deposit mix helped lower the total deposit cost by four basis points sequentially to 2.16%, a 30-basis-point improvement from a year earlier. However, end-of-period deposits were modestly below the prior quarter after the company exited brokered certificates of deposit and other high-cost, non-relationship deposits. Anderson said USCB replaced some of that funding with lower-cost Federal Home Loan Bank advances. He said the company would continue to prioritize granular, low-cost deposits while using wholesale funding selectively to optimize the balance sheet. De la Aguilera also highlighted a new deposit initiative supporting 1031 exchange real estate transactions. Through a partnership with a Florida-based qualified intermediary, U.S. Century is serving as a depository bank for those transactions. The initiative had generated $22 million in deposits since its launch, he said. Chief Credit Officer Sergio Garrido said asset quality improved during the quarter. Nonperforming loans declined to $2.1 million, or 0.09% of total loans, from $3.6 million, or 0.16%, in the preceding quarter. Classified loans also declined to 0.10% of total loans from 0.30% at March 31. The allowance for credit losses increased to $26.7 million, though the allowance ratio edged down to 1.15% from 1.16%. The company recorded a $1.3 million provision for credit losses, primarily due to loan growth. Net charge-offs totaled $288,000, or 0.05% of average loans, while nonperforming assets represented 0.07% of total assets. Anderson said the higher provision weighed on second-quarter earnings because it was recognized upfront, while income from recently originated loans is expected to be more fully reflected in third-quarter results. Noninterest expense totaled $14 million, increasing $255,000 from the first quarter. The increase was primarily related to a $312,000 excise tax on share repurchases completed in 2025. The efficiency ratio improved to 49.97% from 52.34% in the first quarter, falling below 50% for the first time, management said. Return on average assets was 1.26%, return on average equity was 15.9%, and pre-tax, pre-provision return on average assets was 1.93%. Tangible book value per share increased 3.35% sequentially to $12.64. Total risk-based capital stood at 13.88%. The board declared a quarterly cash dividend of $0.125 per share, payable Sept. 4 to shareholders of record Aug. 17. For near-term modeling, Anderson said management expects net interest margin in a range of 3.40% to 3.50%. Higher deposit costs amid competitive conditions could pressure the lower end of that range, while repricing maturing loans at higher rates could support the upper end. De la Aguilera said USCB continues to invest in lending teams, technology and specialized deposit channels while operating a branch-light model. The company has reduced its branch count from 18 to nine and expects to close its Miami Lakes branch later this year. USCB Financial (NASDAQ: USCB) is a bank holding company headquartered in Columbia, South Carolina, serving as the parent company of United Security Bank. Established to support community banking in the Midlands region, the company focuses on relationship-driven financial services tailored to both individuals and businesses. As a regional player, USCB Financial emphasizes personalized service through a network of full-service branch offices. The company’s core business activities include commercial and consumer lending, deposit products and alternative delivery channels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "USCB Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. USCB Financial Holdings Inc (NASDAQ:USCB) surpassed $3 billion in total assets, marking a significant milestone. Net income increased by 22.5% year over year, reaching $9.1 million or $0.49 per diluted share. The efficiency ratio improved to below 50% for the first time, indicating enhanced operational efficiency. Loan growth was robust, with loans reaching $2.3 billion, up 9.9% year over year. Non-performing loans remained exceptionally low at 0.09% of total loans, showcasing strong credit quality. Provision expenses increased by $1.3 million due to strong loan growth, impacting current quarter earnings. Taxes were higher in the second quarter due to changes in deferred tax inventory. The company strategically exited brokered CDs and other high-cost non-relationship deposits, which could affect deposit stability. There is ongoing competitive pressure in the deposit market, which could impact funding costs. The efficiency ratio, while improved, is expected to remain in the low 50% range, indicating potential cost pressures. Warning! GuruFocus has detected 4 Warning Sign with USCB. Is USCB fairly valued? Test your thesis with our free DCF calculator. Q: Do you expect additional correspondent banking growth in the third quarter at a similar level to what you saw this quarter? A: Rob Anderson, CFO: We anticipate a similar yield of 590 to 6% on new loan production. The new loan production may moderate to more consistent levels, around 175 to 190 million, compared to the 272 million this quarter. The pipeline is robust, and we expect a strong third quarter. Q: Should we expect additional mixed shift this quarter from cash into loans and securities? A: Rob Anderson, CFO: The 87 million in cash was a bit high; we prefer it around 50 million. We expect the mix shift to continue improving as we move more cash and securities into loans. Q: Can you talk more about the opportunities for the new 1,031 exchange vertical? A: Luis de la Aguilera, CEO: We've identified a significant number of transactional law firms, title companies, and CPAs. We launched this service a couple of months ago and have already generated $22 million in deposits. The response has been very positive. Q: Can you explain the margin range of 340 to 350 and what factors could influence it? A: Rob Anderson, CFO: The lower end could be influenced by higher funding costs and competitive pressures. On the higher end, we have loan maturities that we can reprice at higher rates. We believe 340 to 350 is a good range, assuming a stable interest rate environment. Q: Is the increase in wholesale funding and FHOB advances expected to continue? A: Rob Anderson, CFO: We use wholesale funding to backfill when necessary, but it won't be as steep going forward. Our focus remains on growing our deposit book with granular, low-cost deposits. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

MIAMI, July 23, 2026 (GLOBE NEWSWIRE) -- USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $9.1 million or $0.49 per fully diluted share for the three months ended June 30, 2026, compared with net income of $8.1 million or $0.40 per fully diluted share for the same period in 2025. “Our second quarter performance highlights the ongoing strength of our company and the effective implementation of our growth strategy,” said Luis de la Aguilera, Chairman, President and CEO. “We achieved record new loan fundings of $272.0 million, resulting in a 14.6% annualized increase in loans from the previous quarter and pushing our total assets above $3 billion. At the same time, we improved profitability and operational efficiency, with our net interest margin rising to 3.49% from 3.27% and our efficiency ratio improving to 49.97% from 52.34% compared to the first quarter of 2026. These achievements underscore the scalability of our business model and our dedication to creating long-term value for our shareholders.” Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended June 30, 2026 compared to at or for the quarter ended June 30, 2025 and annualized where appropriate. Profitability Annualized return on average assets for the quarter ended June 30, 2026 was 1.26% compared to 1.22% for the second quarter of 2025. Annualized return on average stockholders’ equity for the quarter ended June 30, 2026 was 15.90% compared to 14.29% for the second quarter of 2025. The efficiency ratio for the quarter ended June 30, 2026 was 49.97% compared to 51.77% for the second quarter of 2025. Net interest margin for the quarter ended June 30, 2026 was 3.49% compared to 3.28% for the second quarter of 2025. Net interest income before provision for credit losses was $24.4 million for the quarter ended June 30, 2026, an increase of $3.4 million or 15.9% compared to $21.0 million for the same period in 2025. Balance Sheet Total assets were $3.0 billion at June 30, 2026, representing an increase of $300.2 million or 11.0% from $2.7 billion at June 30, 2025. Total loans held for investment were $2.3 billion at June 30, 2026, representing an increase of $209.1 million or 9.9% from $2.1 billion at June 30, 2025. Total deposits were $2.5 billion at June 30, 2026, representing an increase of $116.6 million or 5.0% from $2.3 billion at June 30, 2025. Total stockholders’ equity was $233.2 million at June 30, 2026, representing an increase of $1.7 million or 0.7% from $231.6 million at June 30, 2025. Total stockholders’ equity included accumulated other comprehensive loss of $31.4 million at June 30, 2026 compared to accumulated other comprehensive loss of $41.8 million at June 30, 2025. The increase in total stockholders’ equity was partially offset by the repurchase of 2.0 million shares of Class A common stock in September 2025, as previously disclosed. Asset Quality The allowance for credit losses (“ACL”) increased by $1.8 million to $26.7 million at June 30, 2026 from $24.9 million at June 30, 2025. The ACL represented 1.15% of total loans at June 30, 2026 and 1.18% of total loans at June 30, 2025. The provision for credit losses was $1.3 million for the quarter ended June 30, 2026, an increase of $236 thousand compared to $1.0 million for the same period in 2025. The ratio of non-performing loans to total loans was 0.09% for the quarter ended June 30, 2026 and 0.06% for the quarter ended June 30, 2025. Non-performing loans totaled $2.1 million at June 30, 2026 and $1.4 million at June 30, 2025. Non-interest Income and Non-interest Expense Non-interest income was $3.6 million for the three months ended June 30, 2026, an increase of $190 thousand or 5.6% compared to $3.4 million for the same period in 2025. Non-interest expense was $14.0 million for the three months ended June 30, 2026, an increase of $1.3 million or 10.5% compared to $12.6 million for the three months ended June 30, 2025. Capital On July 20, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.125 per share of the Company’s Class A common stock. The dividend will be paid on September 4, 2026 to shareholders of record at the close of business on August 17, 2026. As of June 30, 2026, total risk-based capital ratios for the Company and the Bank were 13.88% and 13.68%, respectively, well in excess of the well-capitalized minimum threshold regulatory requirements. Tangible book value per common share (non-GAAP financial measure) was $12.64 at June 30, 2026, representing an increase of $1.11 or 9.6% from $11.53 at June 30, 2025. At June 30, 2026, tangible book value per common share was negatively affected by ($1.70) per share due to an accumulated other comprehensive loss of $31.4 million primarily due to changes in the market value of the Company’s available for sale securities. At June 30, 2025, tangible book value per common share was negatively affected by ($2.08) per share due to an accumulated other comprehensive loss of $41.8 million. Conference Call and Webcast The Company will host a conference call on Friday, July 24, 2026, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended June 30, 2026. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call. Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com. An archived version of the webcast will be available in the same location shortly after the live call has ended. About USCB Financial Holdings, Inc. USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking center near you, please call (305) 715-5200 or visit www.uscentury.com. Forward-Looking Statements This earnings release may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “seek,” “continue,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and potential future additional 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 allowance for credit losses; the efficiency and effectiveness of our internal control procedures and processes; our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate; adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; deposit attrition and the level of our uninsured deposits; legislative or regulatory changes, including the enactment of the One Big Beautiful Bill and changes in accounting principles, policies, practices or guidelines; the lack of a significantly diversified loan portfolio and our concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate; the effects of climate change; the concentration of ownership of our common stock; fluctuations in the price of our common stock; our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions; inflation, interest rate, unemployment rate, and market and monetary fluctuations; the effects of potential new or increased tariffs, retaliatory tariffs and trade restrictions; the impact of international hostilities and geopolitical events; increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin; the loss of key employees; the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and other risks described in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”). All forward-looking statements are necessarily only estimates of future results, and there can be no assurance  that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, any 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 occurring after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports the Company has filed or will file with the SEC. Non-GAAP Financial Measures This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s operations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not 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 [email protected] Media RelationsMartha Guerra-Kattou [email protected]

USCB Financial Holdings, Inc. (USCB) came out with quarterly earnings of $0.49 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.47, delivering a surprise of -2.08%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. USCB Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $27.95 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.49%. This compares to year-ago revenues of $24.4 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. USCB Financial shares have added about 9.6% since the beginning of the year versus the S&P 500's gain of 9.6%. While USCB Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for USCB Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.51 on $27.64 million in revenues for the coming quarter and $2.02 on $108.75 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Trustmark (TRMK), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This holding company for Trustmark National Bank is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +5.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Trustmark's revenues are expected to be $211 million, up 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report USCB Financial Holdings, Inc. (USCB) : Free Stock Analysis Report Trustmark Corporation (TRMK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record quarter: GAAP net income was $9.4 million ($0.51/share) and operating EPS $0.47, with operating ROAA 1.25% and ROAE 15.92%; tangible book value rose 8.9% to $12.23 and the board declared a $0.125 quarterly dividend. Balance-sheet growth and margins: Total assets reached $2.8 billion (+6.3% YoY), loans grew 10.1% and deposits 8% to $2.5 billion, while net interest margin was steady at 3.27% and management expects modest margin expansion as recent loan production seasons. Strong credit and capital: Allowance for credit losses increased to $26.1 million (1.16% of loans) with no loan losses, non-performing loans at 0.16%, and total risk-based capital of 14.09%. Interested in USCB Financial Holdings, Inc.? Here are five stocks we like better. USCB Financial (NASDAQ:USCB) reported what management described as “another record quarter” for the first quarter of 2026, supported by loan and deposit growth, a stable net interest margin, and what executives said remained exceptionally strong credit quality. Luis de la Aguilera, chairman, president, and CEO, said the company generated GAAP net income of $9.4 million, or $0.51 per diluted share, for the quarter ended March 31, 2026. On an operating (adjusted) basis, de la Aguilera said diluted EPS was $0.47, operating return on average assets (ROAA) was 1.25%, operating return on average equity (ROAE) was 15.92%, and the efficiency ratio was 52.36%. → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price Chief Financial Officer Rob Anderson said GAAP results included a $619,000 income tax benefit tied to an adjustment of the deferred tax asset related to 2025. After adjusting for that item, Anderson pointed to the operating metrics and also cited total risk-based capital of 14.09% and tangible book value per share of $12.23. De la Aguilera said tangible book value per share increased 8.9% year-over-year to $12.23, “even after absorbing the market-related AOCI impacts.” He added the board declared a quarterly cash dividend of $0.125 per share in April. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank De la Aguilera said total assets reached $2.8 billion, up 6.3% year-over-year. Loans increased 10.1% year-over-year from $2.2 billion, and deposits grew 8% year-over-year to $2.5 billion, which management attributed to its deposit-focused business verticals and a diversified deposit base. Anderson said average deposits were about $2.4 billion in the quarter, up $212 million year-over-year, but down $26 million sequentially. He attributed the linked-quarter decline to a late fourth-quarter withdrawal of roughly $130 million by a large commercial client, which he said was anticipated and managed. On an end-of-period basis, Anderson said total deposits increased $149 million during the quarter. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Deposit-focused verticals—Association Banking, the Private Client Group, and Correspondent Banking—grew to 30% of deposits, or $747 million, as of March 31, according to de la Aguilera. He said that represented a $62 million quarter-over-quarter increase. Funding costs improved during the quarter. De la Aguilera said deposit costs declined to 2.2%, improving 29 basis points from the prior year. Anderson said total deposit cost declined 8 basis points quarter-over-quarter to 2.2%, helping keep net interest margin steady. During the Q&A, Anderson provided additional detail on pricing by specialty verticals, saying Private Client Group deposit costs were “a little over 2%,” Correspondent Banking was “probably around 1.65%,” and HOA-related deposits were “around a similar amount.” Anderson said the company was not anticipating near-term rate cuts and expected deposit costs to remain near current levels absent a rate cut. Anderson said average loans rose $46.8 million quarter-over-quarter, equating to an 8.9% annualized growth rate, while average loans grew 9.6% year-over-year. End-of-period net loan growth was $52 million, which he said reflected strong production but was affected by the timing of payoffs and originations. Gross loan production totaled $188 million in the quarter, with $114 million—or 60%—closing in March, according to Anderson. De la Aguilera noted that over half of production occurred in March, and said the timing limited the quarter’s full earnings contribution even as the pipeline supported future net interest income expansion. Anderson said Correspondent Banking loans represented 30% of quarterly production and carried a new loan yield of 5.13%. Excluding correspondent loans, he said the weighted average yield on new production was 6.2% for the quarter. He emphasized the correspondent loans are typically short-term (about 180 days), tied to SOFR, and are intended to add asset sensitivity and flexibility. Net interest margin was 3.27% in the quarter, which Anderson said was flat, as improved deposit pricing was offset by lower-than-expected loan interest income driven by timing and SOFR volatility. He cited late-quarter loan closings, elevated early-quarter payoffs, and lower SOFR rates during much of the quarter as key factors, with higher securities portfolio yields and lower deposit costs helping stabilize the margin. Looking ahead, Anderson said the company expected “very modest margin expansion later this year” as recently originated loans season into earnings, though he cautioned that rate volatility could limit further deposit-cost improvement. In response to an analyst question about the outlook, Anderson said he would “model flat to slightly up near term,” pointing to additional earning assets added late in March, a strong pipeline, and strong April loan activity. Chief Credit Officer William Turner said the allowance for credit losses increased to $26.1 million at quarter end, representing 1.16% of the loan portfolio. Turner said the bank recorded a $602,000 provision primarily due to the $52 million in net loan growth, and that there were no loan losses during the quarter. Turner said non-performing loans increased by roughly $500,000 during the quarter, with the non-performing ratio at 0.16% of the portfolio. He attributed the increase to two past-due residential real estate loans in the process of collection, adding that the loans were well collateralized and “no loss is expected.” Classified loans increased to $6.8 million, or 0.3% of the portfolio, representing 2.2% of capital, Turner said, also tied to the two residential loans. He added that the bank continued to have no other real estate owned. Anderson said non-interest income totaled $4.2 million in the first quarter, representing 15.8% of total revenue. Service fee income was $3.1 million, driven by “record swap fees” of $1.6 million amid strong loan activity and rate volatility. Anderson said swap-related fees were expected to normalize in the second quarter. In the Q&A, he said swap fees could return to around $700,000 per quarter, which he said would imply total fees “right around maybe $3.7 million” assuming other items remain equal. On expenses, Anderson said total expenses were $13.7 million, down $564,000 from the prior quarter largely due to one-time items in the fourth quarter of last year. He said headcount increased in the quarter with more hires planned in the second quarter, and management expected expenses to rise “at a measured pace” while maintaining an efficiency ratio in the low 50% range. De la Aguilera outlined several growth initiatives across South Florida, particularly Miami-Dade, Broward, and Palm Beach counties. He said the company launched a new lending team in March at its remodeled Doral headquarters banking center, focused on Miami-Dade’s Airport West market (including Doral, Hialeah, and Medley). He said the unit would be led by a senior lender and include business development officers, with most roles filled by reassigned staff and two new production hires, including a new senior C&I lender. De la Aguilera also highlighted the Association Banking vertical, focused on condominium associations. He said the unit serves more than 470 condominium associations in the Tri-County market and had $160 million in deposits at quarter end, representing 29% year-over-year deposit growth. He said the unit ended the quarter with $126 million in loans, reflecting an 11.5% annual growth rate, and added that a new production officer was hired to focus on Palm Beach and the Treasure Coast. Separately, de la Aguilera said the bank is considering expanding its physical presence by opening “two to four strategically located branches in Broward and Palm Beach counties over the next three years,” describing it as a complement to the company’s branch-light, technology-enabled model. He said the company already serves more than 2,100 clients in those two counties with approximately $445 million in loans and $415 million in deposits, despite operating one physical branch location between them. In response to a question on Correspondent Banking, de la Aguilera said growth in that area was planned, noting the bank’s focus on the Caribbean Basin and Central America. He said USCB onboarded three new banks during the quarter and was evaluating five more. Anderson added that these correspondent relationships also include low-cost deposits and significant wire activity. Closing the call, de la Aguilera said the first quarter was “a strong kickoff to our three-year strategic plan,” citing record earnings, prudent balance growth, stable margins, and “outstanding credit quality” while returning capital to shareholders. USCB Financial (NASDAQ: USCB) is a bank holding company headquartered in Columbia, South Carolina, serving as the parent company of United Security Bank. Established to support community banking in the Midlands region, the company focuses on relationship-driven financial services tailored to both individuals and businesses. As a regional player, USCB Financial emphasizes personalized service through a network of full-service branch offices. The company’s core business activities include commercial and consumer lending, deposit products and alternative delivery channels. The article "USCB Financial Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Apr. 24, 2026, 10 a.m. ET Chairman, President, and Chief Executive Officer — Lou De La Aguilera Chief Financial Officer — Rob Anderson Chief Credit Officer — William Turner Need a quote from a Motley Fool analyst? Email [email protected] Lou De La Aguilera: Good morning, and thank you for joining us for the USCB Financial Holdings, Inc. first quarter 2026 earnings call. I am Lou De La Aguilera, Chairman, President, and CEO of USCB Financial Holdings, Inc. Joining me today are Rob Anderson, our Chief Financial Officer, and William Turner, our Chief Credit Officer. Rob will walk you through our financial results in detail, and William will review credit quality and portfolio trends. We are very pleased to report on another record quarter highlighted by strong core earnings, disciplined balance sheet execution, and our continued focus on maintaining strong credit quality. For the quarter ending 03/31/2026, the company generated net income of $9.4 million, or $0.51 per diluted share on a GAAP basis. On an operating or adjusted basis, diluted EPS was $0.47, operating ROAA was 1.25%, ROAE was 15.92%, and the efficiency ratio was 52.36%. These results reflect consistent execution of our long-term business model focused on disciplined growth, prudent risk management, and sustainable profitability. At a high level, total assets reached $2.8 billion, up 6.3% year over year. Loans increased 10.1% year over year from $2.2 billion driven by continued strong, diversified production. Deposits grew 8% year over year to $2.5 billion, supported by specialized business verticals as well as a well-diversified deposit base. Our deposit-focused business verticals—namely association banking, a private client group, and correspondent banking—have steadily grown to 30% of deposits, or $747 million as of 03/31/2026, a $62 million quarter-over-quarter increase. Net interest margin expanded to 3.27%, up from 3.10% in the prior year, reflecting effective asset deployment and improving funding costs. Importantly, this growth has not come at the expense of credit quality; nonperforming loans remain exceptionally low at 0.16% of total loans, and net charge-offs were effectively zero for the quarter. Our first quarter performance demonstrates the benefits of actions we have taken over the past several quarters to enhance earning power and balance sheet resilience. Loan production was strong during the quarter with $188 million in gross loan production, over half of which occurred in March, positioning us for continued momentum into the second quarter. While the timing of production limited full-quarter earnings contribution, the pipeline supports future net interest income expansion. On the funding side, we continue to see the benefits of our specialized deposit franchises. Average deposits increased by nearly $212 million year over year, while deposit costs declined to 2.2%, improving by 29 basis points from the first quarter of last year. Capital remains a key strength of the company. During April, our Board declared a quarterly cash dividend of $0.125 per share, reflecting confidence in our earnings durability and capital generation. Tangible book value per share increased to $12.23, an 8.9% year-over-year increase even after absorbing the market-related AOCI impacts. Overall, it was a balanced quarter with strong earnings, solid growth, stable margins, and strong credit quality, all while maintaining conservative capital levels. The following page is self-explanatory, directionally highlighting nine select historical trends since recapitalization. Consistent, efficient, profitable performance based on conservative risk management is what our team focuses on consistently delivering. With that overview, I will now turn the call over to Rob to review our financial results in greater detail. Rob Anderson: Thank you, Lou, and good morning, everyone. Looking at pages five and six, I would describe 2026 Q1 as a highly successful quarter for USCB Financial Holdings, Inc. The team posted very solid results, which I am proud to share with you today. The balance sheet, specifically the loan book, continues to grow within our stated range of high single- to low double-digit growth. Deposits increased this quarter, outpacing loan growth and ensuring sufficient liquidity for future lending. Credit remained solid, and our profitability ratios came in line with internal projections. While we made $0.51 on a GAAP basis, the company recognized a $619,000 income tax benefit in the quarter due to an adjustment of the deferred tax asset relating to 2025. Adjusting our GAAP figures for this one item, you will find the operating or adjusted numbers on page six. This includes operating return on average assets of 1.25%, operating return on average equity of 15.92%, an efficiency ratio of 52.36%, operating diluted earnings per share of $0.47, NPA to assets of 0.13%, allowance for credit losses stable at 1.16%, total risk-based capital at 14.09%, and tangible book value per share at $12.23. So with that overview, let us discuss deposits on the next page. Average deposits for the quarter totaled approximately $2.4 billion, representing an increase of $212 million year over year. On a linked-quarter basis, average deposits declined by $26 million and that sequential movement requires some context. Late in the fourth quarter, a large commercial client withdrew approximately $130 million, which reduced our average deposit balance entering the first quarter. Importantly, this was an anticipated and managed outflow, and the end-of-period chart demonstrates we have since recovered from that decline. On an end-of-period basis, total deposits increased by $149 million during the quarter, highlighting both the resilience of our franchise and our ability to respond quickly to large, discrete client movements. Equally important is deposit pricing. Total deposit cost declined eight basis points quarter over quarter to 2.2%, which played a meaningful role in allowing us to keep the net interest margin stable. With ongoing rate volatility, we anticipate deposit costs will stay near current levels. Although some competitors are offering higher rates, a relationship-driven deposit base should ensure stable pricing and funding. So with that, let us move on to the loan book. On an average basis, loans increased $46.8 million quarter over quarter, which equates to an 8.9% annualized growth rate. Year over year, average loans grew 9.6% and well within management's expectations. Net loan growth at the end of the period was $52 million, showing strong production momentum, and two key dynamics stood out on this. First, a significant portion of our loan production occurred late in the quarter, and second, loan payoffs occurred early in the quarter. This timing is visible in the chart and translates to a lower earnings impact in the quarter. More specifically on page nine, gross loan production totaled $188 million during the quarter, with $114 million, or 60%, closing in March. Additionally, SOFR rates were lower for most of the quarter, further influencing loan yield metrics. Correspondent banking loans represented 30% of quarterly production and carried a new loan yield of 5.13%. Excluding this segment, weighted average yield on the new loan production was 6.2% for the quarter. It is important to remember that these correspondent loans are short term in nature, typically 180 days, tied to SOFR, and serve a strategic purpose by adding asset sensitivity and optionality to the balance sheet. Additionally, these banks have over $250 million in low-cost deposits with significant wire volume, a very profitable business vertical for USCB Financial Holdings, Inc. Looking ahead, we expect new loan production yields to remain around these levels. Turning to page 10, net interest margin was flat at 3.27% for the quarter. Despite successfully lowering deposit costs, overall margin was impacted by lower-than-expected loan interest income largely driven by timing and volatility rather than structural pressure. Specifically, interest income was constrained, as mentioned before, by a combination of factors: loan closings that occurred late in the quarter, elevated payoffs early in the period, and lower SOFR rates throughout much of the quarter. These pressures were partially offset by improvements in deposit pricing and higher yields in the securities portfolio, which helped stabilize our margin. Importantly, we have now expanded [inaudible] after quarter, and the underlying trajectory remains intact. As recently originated loans season into earnings, we expect incremental improvement in interest income, which should support a very modest margin expansion later this year. That said, ongoing rate volatility may limit the degree to which deposit costs can move materially lower from here, and our focus remains on disciplined pricing, balance sheet mix, and execution, all aimed at protecting the margin while positioning the franchise for improved profitability. With that, let me pass it over to William to discuss asset quality. William Turner: Thank you, Rob, and good morning, everyone. As you can see from page 11, the first graph shows the allowance for credit losses increased to $26.1 million at the end of the first quarter and at an adequate 1.16% of the loan portfolio. We made a $602,000 loan provision to the allowance that was driven mostly by the $52 million in net loan growth. There were no loan losses during the quarter. The remaining graphs on page 11 show the nonperforming loans at quarter end grew by six basis points, or almost $500,000. The nonperforming ratio stands at 0.16% of the portfolio, and these loans are well covered by the allowance and compare favorably to peer banks at year-end 2025. The increase was related to two past-due residential real estate loans that are in the process of collection. All nonperforming loans are well collateralized, and no loss is expected. Classified loans also increased during the quarter to $6.8 million, or 0.3% of the portfolio, and represent 2.2% of capital. The increase is related to the two nonperforming residential loans previously mentioned. No losses are expected from the classified loan pool. The bank continues to have no other real estate. Overall, the quality of the loan portfolio is good. Now let me turn it back over to Rob. Rob Anderson: Thank you, William. Total noninterest income for Q1 was $4.2 million, up from the previous quarter and accounting for 15.8% of total revenue. Service fee income reached $3.1 million, mainly driven by record swap fees of $1.6 million amid strong loan activity and strong sales execution with rate volatility in the quarter. While fee performance was exceptional this quarter, we expect swap-related fees to normalize in Q2 as market conditions stabilize. Overall, noninterest income performance in the quarter highlights the diversification of our revenue streams and the value of our fee-based capabilities. Let us take a look at our expenses. Our total expenses amounted to $13.7 million, which is $564,000 less than the previous quarter, predominantly due to various one-time items in Q4 of last year. The efficiency ratio stood at 52.4% for the quarter, which is consistent with prior periods. Additionally, headcount increased this quarter, and more hires are planned for Q2. You should expect expenses to increase but at a measured pace, and the efficiency ratio should remain in the low-50% range. In a minute, Lou will speak about some specific strategies that will tie this together. So with that, let us move on to capital. Capital ratios remain robust and continue to strengthen. Total risk-based capital currently stands at 14.09%. The dividend remains at $0.125, and given our projected earnings and capital generation profile, we anticipate further improvement in capital ratios over the coming quarters. So with that, let me turn it back to Lou for some closing comments. Lou De La Aguilera: Thank you, Rob. Before we conclude, I would like to briefly expand on how our operating model is translating into tangible growth opportunities across South Florida, particularly in Miami-Dade, Broward, and Palm Beach Counties. In March, we launched a new lending team located at our recently remodeled Doral headquarters banking center. This new production unit will focus on developing one of Miami-Dade's densest small-business, high-growth areas, the Airport West market, encompassing the adjacent cities of Doral, Hialeah, and Medley. USCB Financial Holdings, Inc. has banking centers in each of these markets, and this new lending team will partner with each branch to leverage business development opportunities. Led by a proven senior lender as team leader along with two business development officers and supported by a portfolio manager and lending assistant, existing staff has been reassigned to largely field this team. To round off this new production unit, a new senior C&I lender has been hired. In effect, this new team will have a total of two new production hires, as the rest is composed from current team members. Another production unit, which is expanding, is our association banking team, which was launched as a business vertical focused on the deposit-rich condominium market. This unit has grown to serve over 470 condominium associations in the Tri-County market, of which 136 are in the Broward–Palm Beach markets. At quarter end 2026, this business unit totaled $160 million in deposits, posting a 29% year-over-year deposit growth rate. The association banking team also closed Q1 2026 with $126 million in loans, reflecting an 11.5% annual growth rate. Led by an experienced Senior Vice President, the Association Banking Unit has hired a new production officer who will focus on developing Palm Beach and the Treasure Coast, from Port St. Lucie north to Vero Beach. The Tri-County Miami-Dade MSA reports approximately 13,000 condominium associations housing over 600,000 condo units, denoting a clear opportunity for growth. Since 2015, USCB Financial Holdings, Inc. has tactically adopted a branch-light, technology-enabled model, consolidating our physical footprint from 18 locations to 10 while more than tripling the size of our balance sheet. This approach has allowed us to scale efficiently, deploy capital productively, and service clients through a relationship-driven, high-touch model without the overhead associated with a traditional large branch network. Our investments in digital capabilities and centralized operations enable our bankers to focus on what matters most: local market knowledge, speed of execution, and client service. The results in Broward and Palm Beach Counties provide compelling proof of concept. As of 03/31/2026, the bank serves over 2,100 clients across these two counties, with approximately $445 million in loans and $415 million in deposits, despite operating only one physical branch location between them. In Broward County alone, we have built a base of 1,850 customers supported by $234 million in loans and $259 million in deposits, while Palm Beach County has grown to 253 customers, $122 million in loans, and $156 million in deposits. Importantly, this growth has been driven primarily through referral activity, direct calling efforts, and our specialized verticals, rather than reliance on legacy branch traffic. These metrics reinforce our belief that there is substantial unmet demand for a commercially focused, relationship-driven bank led by local decision makers who understand the market. As a result, we believe the time is right to thoughtfully extend our physical presence by opening two to four strategically located branches in Broward and Palm Beach Counties over the next three years. These locations will be designed to complement, not duplicate, our existing branch-light strategy and will be staffed by proven local talent with deep market relationships, allowing us to further capture market share, deepen client penetration, and accelerate organic growth while maintaining strict discipline around returns and expense efficiency. We view this next phase of expansion not as a departure from our model, but as a natural evolution, deploying physical offices when the data already demonstrates scale, profitability, and long-term opportunity. The three strategies I have just outlined align well with USCB Financial Holdings, Inc.'s relationship-driven business model. Growth in professional firms, closely held businesses, and income-producing real estate continues to generate high-quality loan and deposit opportunities. Our specialized verticals and conservative underwriting allow us to participate in this growth while maintaining excellent credit quality. Simply put, Florida's strength maintains a powerful headwind for USCB Financial Holdings, Inc., and we believe the state's long-term fundamentals continue to support sustainable growth opportunities for our franchise. With that said, operator, we are now ready to open the line for Q&A. Operator: We will now open the call for questions. At this time, we will begin the question-and-answer session. To ask a question, you may press star and then 1 using a touch-tone telephone. To withdraw your question, you may press star and 2. If you are using a speakerphone, we ask that you please pick up your handset prior to pressing the keys to ensure the best sound quality. Once again, that is star and then 1 to join the question queue. Our first question today comes from Will Jones from KBW. Please go ahead with your question. William Bradford Jones: Yeah, hey. Thanks. Good morning, guys. Rob Anderson: Good morning. William Bradford Jones: Hey, Rob, I wanted to start firstly on the margin. This quarter, it felt like, just with some of the loan dynamics with the payoffs early and the growth late, that we did not really get to see the fully optimized margin from the bond restructure that you guys did and some of the liquidity deployment that you had planned. Is there a way to look at what a March NIM would have looked like, just as we think about a good starting point for the margin going forward? Rob Anderson: Yeah. On the margin, our net interest income was down slightly. You had the day count in there, of course, but also we had elevated payoffs real early in the quarter. We had some clients that sold some properties that left, and then around 60% of our loan production occurred in March. The March margin was right around 3.28%. It has been pretty steady for the three months. I would anticipate all the additional earning assets that came in mainly in the last two weeks of March to help fuel net interest income for the second quarter. We have a very strong pipeline right now, probably one of the strongest we have seen. April activity was strong on the loan side as well. So I would anticipate flat to slightly higher margin given what we are doing on the deposits, and we do not have to pay up for deposits either. So I would model flat to slightly up near term. William Bradford Jones: Do you have just the new incremental deposits this quarter—what that is costing and kind of what the competitive dynamics are looking like today? Rob Anderson: Yeah. So we grew about $149 million in the quarter, and it was very broad based. Lou mentioned about $62 million of that came from our specialty verticals, meaning the private client group, correspondent banking, and our homeowners association, which we have been emphasizing and will continue to put a lot of resources behind. The balance of it came across the board, and in the meantime, we decreased the cost of the entire deposit book by eight basis points in the quarter. So it is not like we are paying up for that funding. Our DDA has been strong in the early parts of April. So we feel pretty confident about maintaining our deposit costs in and around the current levels. I can tell you the specialty verticals have a much lower deposit cost than overall. For instance, our private client group deposit cost in that book is a little over 2%, correspondent banking is probably around 1.65%, and our HOA deposits are probably around a similar amount. William Bradford Jones: Alright. That is great. That is very helpful color. Then I guess just dovetailing a little on some of your final thoughts there. It feels like the next two, three, four, five years are going to be a pretty transformational period for you guys just in terms of what you want to do with the growth of the franchise. Within that comes a little bit of upfront investment, as you talked about. But it still feels like you are going to carry some pretty solid revenue momentum just from that growth. So what is the right way to think about operating leverage as we look out maybe over this year and next, and then maybe curtail that on some near-term profitability goals that you might have? Rob Anderson: It is a good question, Will. We have been modeling that out. We do have a really strong three-year strategic plan. It does involve some investments, mainly moving up to Broward and Palm Beach, in addition to investing heavily in Miami-Dade. I think the word that I would use will be measured. We are clocking a 1.25% ROA and 16% on equity. I do not see those materially moving down. Of course, asset quality has been our cornerstone, but we will be making investments. I think you can expect the expenses to tick up, but we are still growing the balance sheet at a double-digit pace and compounding our equity around 16%. That should translate into good earnings and returns for our shareholders that are well within what I would say is our current performance. Lou De La Aguilera: And to add to that, the fact that we have built out in Broward and Palm Beach the portfolios we have in loans and deposits—so we are at $445 million in loans and over $415 million in deposits—that is as large as some smaller banks up there that have multiple branches. So we already have the demand. It is a clear proof of concept. Over 2,100 customers. We feel that strategically, opening banking centers, we can not only service those customers more readily, but also attract new ones. As you know, over the last decade, there has been a lot of M&A activity in Broward and Palm Beach, and there is, I think, a wide-open opportunity for us. William Bradford Jones: Yeah. Well, it is certainly a fun growth story to cover. So look forward to seeing what you guys do over the next few years. Lou De La Aguilera: Thanks, Will. Operator: Our next question comes from Michael Rose from Raymond James. Please go ahead with your question. Michael Edward Rose: Hey, good morning, guys. Thanks. I just wanted to follow up on some of the deposit commentary, and I know that was kind of your one priority coming into the year. You executed both on the interest-bearing front, but especially on the NIB front; mix remained relatively stable. As we think about efforts to ramp up or continue loan growth at higher levels—and, Lou, you did a really good job outlining some of the priorities and strategies as we move forward—and I know you described some of the deposit aspects as well, but should we anticipate any change in that mix? And then maybe just from a shorter-term perspective, Rob, what are you assuming in terms of rate cuts, if any? It seems like the forward curve does not have any in there. Just the ability to put a cap on deposit costs for some of the growth in some of the specialty verticals? I know there is a lot in there, but just trying to frame up the deposit conversation. Rob Anderson: Maybe I will start. Early in the quarter—February time frame—it seemed like rates were starting to move down. Then March hit, and rates started moving back up. We are not anticipating rate cuts near term, but there is still, I think, one in the forward curve going forward. As a reminder, we still profile liability sensitive, just slightly, which I think would benefit us, and we have been able to outperform our modeling. So I think if we do get the rate cuts, that will be beneficial to the margin. We have put a lot of emphasis on our deposit book because we feel that is where we add franchise value—having small, granular, low-cost deposits across the board. So we have made investments in our private client group, in our HOA space, in our correspondent banking, and of course in our business banking and just how we price and go after deposits across the board. We are talking to the sales team constantly, whether it is in pipeline meetings or monthly leadership meetings; that is a heavy focus for us. I think you can continue to see both loans and deposits growing at double digits. We have given that guidance before. This quarter was a little outsized on the deposit side, but we needed that given what we had at year-end. I do not think the deposit cost is going to move materially next quarter unless we have a rate cut, which is not anticipated at this time. Michael Edward Rose: Okay. Perfect. I appreciate it. And then I think I heard, Rob, earlier that you expect swap fees to normalize—not surprised there. Service charges were up this quarter, which is nice to see. I think you previously talked about a $4 million to $4.5 million a quarter kind of run rate for fee income. I know it is a smaller piece relative to spread income for sure, but any updated thoughts there as we move forward and you grow on the deposit side? Rob Anderson: On the noninterest and on the fee side, the swaps were the outstanding item in the quarter. I think the sales team really knows how to work with their customers, position that as a product where they can choose either a fixed rate or a swap. That was elevated. February we had a fair amount that locked in at a little bit tighter spreads. March came in a little tighter, but February was a good month. I think you will see the swap number come back down to maybe $700,000 a quarter, and that would put maybe total fees, all else being equal, right around maybe $3.07 million, somewhere around there for the quarter. But certainly $4.2 million was a nice quarter for us and a standout, and the team did a great job. Michael Edward Rose: Okay. Great. And maybe just one final one for me. Obviously, you continue to have really strong capital levels. They bumped up higher this quarter despite pretty strong balance sheet growth. Any thoughts around normalized capital levels as you execute upon these growth plans? And maybe what that could translate to from either a ROTCE or an ROA perspective over the intermediate to longer term as we think about the story playing out with all the growth initiatives you talked about earlier? Rob Anderson: This year, we increased our dividend to $0.125 a quarter. I think that will remain at that level for the current time. Our capital is really supporting our growth, but when we are compounding our capital at 16%–17%, which I think is a great return for a bank our size, we are going to build capital. We are growing our earnings faster than our balance sheet, so that should continue to grow our capital levels. I think our capital levels are good from where they are, but we will continue to deploy it at a profitable pace as well. We may rethink the dividend, but I would say that is pretty safe at the current levels for the balance of the year. Michael Edward Rose: Great. Definitely a high-class problem. Lou De La Aguilera: Thank you, Michael. Operator: Our next question comes from Feddie Strickland from Hovde. Please go ahead with your question. Feddie Justin Strickland: Hey, good morning. It sounds like there is maybe still a little bit of room for the margin to grow from here, maybe on the yield side. It looks like the weighted average yield on new production was around 6.20% in the deck. What is the pickup you are seeing there versus what you are seeing on loans rolling off, particularly maybe fixed-rate CRE coming up for repricing? Rob Anderson: It is a good question. Our production—the pipeline—is really strong right now. It is probably one of the strongest that we have had in a long time, and it is more balanced earlier in the quarter. Outside of the correspondent piece, which was a little bit lower this past quarter, the yields were around 6.20%. I think today they are hovering right around that for really solid, gold-plated CRE-type properties. I would anticipate that we would be right around the same level. I do not see that moving significantly higher or significantly lower on the loan yield. We have not changed our pricing significantly, and our pipeline is really strong at those levels. We tend to want to keep the sales team focused with volume and pricing that is in the market today, where we do not have to go chase up. Given where we are in terms of our growth and what we are putting on, we do not have to go out and chase a lot of lower-yielding assets. I would say at or near the current levels would be good for modeling, Feddie. Feddie Justin Strickland: And, Rob, what I was trying to get at is: do you have anything that is coming off at lower rates that is being replaced with that 6.20% or so? That is what I am curious about. Rob Anderson: Yeah, we do. We have some that we originated in 2021 that are still at lower rates and will be moving off. I think we had a payoff the other day at 4.85%. That was probably maybe a $7 million to $10 million loan that came off. I do not have the exact number that is rolling off, but we would anticipate—given we had over $50 million of net loan growth—that $50 million is a good number to model for the coming quarter as well, given our pipeline is similar to what we had, maybe a little bit more elevated. Feddie Justin Strickland: Appreciate that. That is helpful. And then, on the correspondent banking side, obviously strong growth there this quarter. Was that kind of expected or seasonal, or was any of that driven by some of the geopolitical turmoil we have seen lately? Lou De La Aguilera: That was planned, Feddie. We want to grow that book responsibly. Our focus is the Caribbean Basin and Central America. To that effect, we have onboarded three new banks this quarter, and we are looking at an additional five. Our team just visited with one with our lead director in Central America. We do quarterly visits, and just like a domestic customer, they are eager for customer service and execution, and I think that we are poised to do that. On the loans, keep in mind that the term of these loans is 180 days. The business is really relationship driven because not all the banks borrow, but all of them have deposits, and they are low-cost deposits. We do a tremendous amount of wire activity, so for us, it is a very good business. It gives us diversity on the loan side and cheap funding, and these are very established banks. We look very carefully at country risk, and the banks by and large are very well capitalized and very established. Feddie Justin Strickland: Great color. Thanks for that, Lou. And just one last quick one here, Rob. I know you had a one-time tax item this quarter. What should we expect as a good normalized tax rate going forward? Rob Anderson: For modeling, I would use about 20.4%. I think that is a good rate to use going forward. Feddie Justin Strickland: Alright. Perfect. Thanks for taking my questions. Operator: Star and then 1. To withdraw your questions, you may press star and 2. Our next question comes from Howard Feinglass from Freedom Capital. Please go ahead with your question. Howard Feinglass: Sorry, hit it by accident. Operator: Mr. Feinglass, please proceed with your question. Lou De La Aguilera: I believe he said it was by accident. Gotcha. Operator: Once again, if you would like to ask a question, please press star and 1. I am showing no additional questions at this time. I would like to turn the floor back over to the management group for any closing comments. Lou De La Aguilera: Thank you. In closing, the first quarter was an excellent start to 2026, effectively a strong kickoff to our three-year strategic plan. We delivered record earnings, continued to grow the balances prudently, maintained strong margins, and preserved outstanding credit quality while returning capital to shareholders. Our franchise remains well positioned in one of the most attractive banking markets in the country, supported by a differentiated business model and a proven management team. We appreciate the continued confidence and support of our shareholders, clients, and employees, and look forward to speaking with you next quarter. I wish you all a great day, and thank you for your continued confidence in USCB Financial Holdings, Inc. Operator: And with that, we will be concluding today's conference call and presentation. We thank you for joining. You may now disconnect your lines. Before you buy stock in Uscb Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uscb Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. USCB (USCB) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool