USCB

Image source: The Motley Fool. Fri, Oct. 23, 2026 - President and Chief Executive Officer - Lou de la Aguilera - Chief Financial Officer - Rob Anderson - Chief Credit Officer - Sergio Garrido Operator: Good day, and welcome to the USCB Financial Holdings third quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Lou de la Aguilera, President and CEO. Please go ahead. Lou de la Aguilera: Good morning, everyone, and thank you for joining us today to review USCB Financial Holdings' third quarter 2026 results. Joining me on the call today are Chief Financial Officer Rob Anderson and Chief Credit Officer Sergio Garrido, who will provide additional detail on the company's performance, beginning with the highlights summarized on slide three. I am pleased to report another strong quarter for USCB Financial Holdings. We delivered record quarterly earnings and continue to build on the momentum we have established over the past several years. Even more importantly, through the first nine months of 2026, we have generated approximately $28 million in net income, already surpassing the full-year earnings reported in any year since our IPO. We also delivered a 16.03% return on average equity and a 1.27% return on average assets, reflecting the strength of our franchise, the resilience of our markets, and the disciplined execution of our team. Just as importantly, these results were achieved while maintaining a strong risk profile. Credit quality remained sound with negligible charge-offs during the quarter and allowance for credit losses of 1.16% of loans and non-performing assets representing only 0.26% of total assets. Conservative risk management and disciplined underwriting continue to be the hallmarks of the USCB franchise. We also continue to benefit from a diversified, relationship-driven business model. Our specialized banking verticals, including association banking, private client group, and correspondent banking, now generate approximately 30% of our deposits and provide a valuable source of stable, relationship-based funding. On the lending side, our portfolio remains well-diversified across commercial real estate, residential real estate, commercial and industrial lending, correspondent banking, and specialty lending businesses, helping us manage risk while supporting consistent growth. While the summer months are typically a slower period for USCB, we remain focused on executing our strategy, strengthening client relationships, and investing in future growth. This month, we expanded our deposit-gathering capabilities with the addition of a seasoned team of four deposit-focused bankers from a national competitor who collectively managed more than $700 million in deposits. Strategic talent acquisitions such as these remain an important component for our long-term growth strategy, and we continue to be successful in attracting high-performing banking professionals. This team will be based in our Hollywood and Aventura banking centers, further strengthening our presence in Broward County and supporting future growth opportunities throughout South Florida. Earlier this year, we also launched a fourth commercial banking production team headquartered in our Doral banking center. To support this expansion, we have already added two experienced commercial lenders and a portfolio manager, with additional positions expected to be filled during the fourth quarter. The Doral Medley Hialeah corridor represents one of South Florida's most vibrant concentrations of small businesses, industrial enterprises, and commercial activity. We believe this market represents significant opportunities for commercial lending, treasury management services, owner-occupied real estate financing, and business deposit growth. This team will also serve as a catalyst for expanding our SBA lending activities. Additional business development personnel are being added to support these efforts. While SBA training initiatives are being implemented throughout our production platform to further enhance our ability to serve small business customers. Growing deposits, further diversifying our loan portfolio, and expanding non-interest income opportunities, including SBA loan sales and treasury management revenues, remain key strategic priorities for USCB. I'd like now to spend a moment on slide four, which is largely self-explanatory. These nine historical trends tell an important story about USCB's transformation and performance since recapitalization. They reflect the steady and reliable progress we have made in growing the franchise, increasing profitability, strengthening capital, and improving operational efficiency, and maintaining disciplined credit performance. What I find most meaningful about these trends is that they demonstrate consistency. Our results are not the product of a single quarter or a favorable market cycle. Rather, they reflect years of disciplined execution, prudent balance sheet management, sound underwriting, and a long-term commitment in building shareholder value. As you look across these charts, you'll see a business that has consistently grown deposits, loans, earnings, and capital while maintaining strong credit quality and a conservative risk profile. Since our recapitalization, we have successfully navigated multiple economic cycles, periods of rising and falling interest rates, the pandemic, inflationary pressures, and significant changes across the banking industry. Through each of these environments, our focus has remained unchanged, building a stronger franchise, serving our clients exceptionally well, managing risk conservatively, and creating long-term value for our shareholders. The discipline is reflected throughout these historical trends. Sustainable, profitable performance anchored by sound and conservative risk management is what our management team is focused on delivering year after year. We believe that consistency is one of the defining characteristics of the USCB franchise and one of the primary reasons we remain well-positioned for continued growth and success. With that perspective, I'll turn the call over to Rob Anderson, who will walk us through our third quarter results and discuss the drivers behind another record earnings quarter for USCB. Rob? Rob Anderson: Thank you, Lou, and good morning, everyone. Third quarter produced record earnings for Team USCB. We delivered the highest quarterly net income since our IPO, held onto the step-up in net interest income we achieved in Q2, and did it while investing in people and technology, which will strengthen our franchise going forward. Highlights include net income was $9.5 million, or $0.51 per diluted share, up from $0.49 last quarter, and up 13.3% over the prior year. Net interest income was $24.3 million, essentially in line with our strong second quarter and up $3 million or 14.2% year over year. A clear reflection of the earnings power of a larger balance sheet. Average loans grew 8.8% annualized over the prior year and 10% year over year, consistent with our guidance despite the typical summer slowdown. Return on average equity improved to 16.03%, and return on average assets was 1.27%. The NIM was 3.37%, still 23 basis points higher than a year ago, and importantly, the margin exited the quarter at 3.41% in September. I will walk through the drivers on page 11. Credit remains sound with a very small charge-off of $23,000 and provision of $53,000. As we indicated last quarter, the tax line moderated with some changes in our deferred tax asset. The efficiency ratio was 54.62%, reflecting deliberate investment in talent, including front office sales professionals. Tangible book value per share was $12.42, up 7.5% year over year. The quarterly change reflects the rate-driven mark on our securities portfolio. Average deposits for the quarter totaled $2.5 billion, up $22.3 million or 3.6% annualized over the second quarter, and average DDA balances are up $40.7 million or 7.2% year over year. On pricing, I am pleased with the discipline of our team. The total deposit cost was 2.19%, 34 basis points lower than a year ago, and the cost of interest-bearing deposits held flat at 2.90%. Even as market rates move higher in September, the modest three basis point uptick in total deposit cost was simply mix. As some DDA balances moved into interest-bearing accounts, not a change in our pricing. On an end-of-period basis, deposits are up $101 million or 4.3% since year end. Quarter-end balances absorb seasonal outflow of approximately $54 million in public funds, which we expect to return later this year. Excluding public funds, deposits grew approximately $48 million in the quarter. Core deposit growth remains our number one priority, and we are investing behind it. We have added dedicated deposit-focused relationship bankers who are already building strong pipelines. We have also given our officers greater pricing flexibility to win new operating relationships. Any new loan pricing exception now carries a higher deposit commitment. Together, these steps position us to grow stable, relationship-based funding, the most valuable part of our franchise in a higher rate environment. Let us move on to the loan book. On an average basis, loans increased $50 million or 8.8% annualized over the prior quarter and $210 million or 10% year over year, right within the high single digit to low double-digit range we have communicated to you. At quarter end, loans stood at $2.3 billion, up $191 million or 9% from a year ago, as new fundings of $156 million fully replaced payoffs and amortization during the quarter. Loan yield was 6.11% compared to 6.2% last quarter. That change was driven by lower loan fee income, largely the accelerated amortization of premiums and fees on loans that paid off a timing item, not a pricing issue. The underlying book continues to reprice higher. Older fixed rate vintages are resetting at today's rates. As you will see on the next page, the coupon on new production is moving up. Turning to the production slide, new loan production was $156 million, up 18% from the third quarter of last year. A solid result for what has historically been our slowest season. Year to date, we have originated $616 million in new loans, which speaks to the depth of demand in our South Florida markets. Just as important is the quality of that production. The average coupon on new loans rose 12 basis points to 6.02%, and excluding correspondent banking, new loans came on at 6.29%, about 18 basis points above our portfolio yield. As a reminder, our correspondent banking loans are typically 180-day notes tied to SOFR, so they reprice quickly, a natural benefit with short-term rates moving higher, while also bringing full relationship, low cost deposits and wire activity. Payoffs and amortization were $155 million, consistent with the elevated prepayment activity we have seen throughout 2026. Payoffs are a normal feature of a healthy, well-performing book and our embedded prepayment penalties protect yield and earnings, contributing to over $600,000 year to date. Let's move on to the margin. Turning to the margin, net interest income was $24.3 million, holding near the record level we reached in Q2 and up $3 million or 14.2% year over year. The NIM was 3.37% compared to 3.49% last quarter. Using the waterfall on the page, more than half of that change, seven basis points, came from lower loan fee income tied to payoff activity. A shift in funding mix toward interest-bearing deposits and borrowings accounted for three basis points and lower income on other earning assets for the two basis points. On a year-over-year basis, the margin is still 23 basis points higher from 314, and September came in at 341. So we are entering the fourth quarter with good momentum. Now a word on the rate environment, because it has shifted. Market rates moved higher in September, and the forward curve suggests that we may stay elevated for some time. As we have discussed on prior calls, our balance sheet is modestly liability sensitive in the near term, so higher short-term rates put some pressure on funding costs, but we have several levers working in our favor. First, about 64% of our loan book is variable or hybrid rate, and new and renewing loans are coming on at higher coupons. Specifically in Q4, we have $610 million of loans that are repricing, tied to SOFR or prime at a weighted average yield of 6.37%. These loans would reprice with any rate increase. Additionally, we have $106 million maturing, predominantly short-term correspondent loans, which typically renew and currently have a weighted average yield of 5.8%, and given the current rate environment, these would also reprice higher. We put excess cash to work during the quarter, buying approximately $33 million of investment-grade corporate bonds at 5.23%, about 190 basis points above the existing portfolio yield. Additionally, our interest rate caps, which we put on last year, are designed to protect the balance sheet if rates continue to rise at a fast pace. The $100 million notional caps will be in the money if SOFR hits 450. Most importantly, the return of public funds and new relationship deposits generated by our new deposit team should allow us to pay down higher-cost wholesale borrowings in the fourth quarter. Putting that together, we believe we can hold or improve the NIM for the fourth quarter, and we guide to the 340 range, broadly consistent with our September exit rate. With that, let me pass it over to Sergio to discuss asset quality. Sergio Garrido: Thank you, Rob. Turning to asset quality. Non-performing loans increased to $7.7 million, or 33 basis points of total loans, compared with $2.1 million, or nine basis points at the end of the prior quarter. The increase was primarily driven by one loan, which we continue to monitor and manage closely. Classified loans increased to 44 basis points of total loans from 20 basis points at June 30th. Despite the increase in metrics, loss experiences remain limited, with net charge-offs only of $23,000 for the quarter. The allowance for credit losses increased by $317,000 to approximately $27 million, representing 1.16% of total loans, compared with 1.15% in prior quarter, and generally consistent with historical levels. Overall, the increase in non-performing and classified loans was concentrated. While charge-off activity remained minimal and allowance coverage remained stable, we continue to maintain disciplined underwriting, active portfolio monitoring, and a conservative approach to credit risk management. Now let me turn it back over to Rob. Rob Anderson: Thank you, Sergio. Non-interest income was $2.7 million for the quarter, and candidly, that is below where we want it to be. The softness was in our more transactional fee lines. With yields elevated, client appetite for swaps slowed considerably. SBA gain-on-sale activity was lighter than planned. The core of our fee businesses, however, remain solid. Wire fees, our largest recurring category, increased to $645,000, supported by our correspondent banking relationships, and our other recurring service fees continue to provide a stable base. Year to date, non-interest income represents 12.8% of total revenue. Rebuilding the fee income is a priority, and over time, we would expect non-interest income to move back towards $3.5 million per quarter. That said, the pace of that recovery will depend largely on SBA and swap activity, which is driven by client demand and rate environment, so we're being measured in that outlook. Let's take a look at expenses. Total non-interest expense was $14.7 million. The increase from last quarter was primarily in salaries, benefits, and that is by design. Full-time headcount grew to 222 from 216, including additional sales staff, along with merit increases, performance-based incentives that are aligned with our record earnings. We also continue to invest in our technology infrastructure to support a safe and sound franchise. Efficiency ratio was 54.62%, and a big portion of that increase is revenue-driven, not necessarily the increase in expenses. Importantly, relative to the size of our balance sheet, expenses remain well controlled. Non-interest expense to average assets was 1.97%, consistent with the 1.93%-1.97% range of the last three quarters. For the fourth quarter, I would model expenses at approximately $15 million or slightly higher, reflecting a full quarter of our recent hires, the deposit team we just lifted in October, and performance-based incentives. Expense management has always been a cornerstone of Team USCB. We remain focused on making opportunistic investments in talented people as they become available. These investments may periodically increase expenses, but our track record demonstrates that over time, USCB operates efficiently while supporting its long-term growth objectives. With that, let me touch on capital. Regulatory capital strengthened across the board this quarter as earnings retention outpaced balance sheet growth. Total risk-based capital at the company increased to 14.07% from 13.88%, comfortably above well-capitalized thresholds. On October 19th, our board declared a quarterly cash dividend of $0.125 per share, payable December 4th to shareholders of record as of November 16th, 2026. AOCI was negative $3.3 million compared to negative $31.4 million on June 30th. That move is entirely a function of higher market rates in our AFS portfolio, so it accretes back over time as the securities pay down and mature. The silver lining is that the same higher rates let us invest portfolio cash flows at better yields, which supports earnings going forward. With tangible book value per share up 7.5% year-over-year to $12.42, and a 16% return on equity, we continue to generate capital at a strong pace while preserving flexibility to support balance sheet growth. With that, let me turn it back to Lou for some closing comments. Lou de la Aguilera: Thank you, Rob. As you've heard today, the quarter was highlighted by record earnings, continued profitability, strong capital generation, sound asset quality, and strategic investments that we believe position USCB for continued growth. While we remain mindful of the evolving interest rate and economic environment, we're encouraged by the momentum we are seeing across our franchise and remain confident in our long-term strategy. At this point, we'd be pleased to answer any questions. Operator, please open the line for questions. Operator: Yes, sir. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone pad. If you are using a speakerphone, we ask that you please pick up your handset before pressing the keys. If at any time your question has been addressed, you would like to withdraw your question, please press star then two. Today's first question comes from Hannah Wynn at KBW. Please go ahead. Hannah Wynn: Hi. Good morning, guys. Lou de la Aguilera: Good morning, Hannah. Rob Anderson: Good morning, Hannah. Hannah Wynn: I wanted to start on the margin. Really appreciated all of the color that you gave on the details in your prepared remarks. You noted that your lower NIM was driven a lot by those lower net loan fees. I was just wondering if you could talk about the underlying trends in the loan yields and excluding those fees, and where you would expect those loan yields to go from here. Rob Anderson: Yeah. Thank you, Hannah. As I mentioned, typically, the production in the third quarter has been seasonal for us, but even so, the new loan production came on absent the correspondent banking loans, I will touch on that in a section, came on at 6.29%. So that is above the portfolio yield. We do have a little over $100 million in correspondent banking loans. These are very short-term notes, typically 180 days, and they are tied to SOFR. So if we get rate increases, which we did in September, we will get the full impact in the fourth quarter of those and any future rate increases that would impact that book fairly quickly. Additionally, as mentioned in the commentary, we have about $610 million of loans that are repricing. Those are tied to SOFR prime, and those are at a weighted average yield of 6.37%. All those loans will reprice if we have any future rate increase, and we will see the full quarter's impact with the past increase that we just had. While the NIM in September came out at 3.41%, which gives us a good start into the quarter, our game plan is to cautiously look at our deposit costs for full relationships, slow walk those increases, and get the impact of the loans near term. So we are going to guide to the 3.40% level on the margin, but we would like to see some upside since we came in at the lower end of our range this past quarter. Hannah Wynn: Great. That is all really helpful. Then another question on loan growth. I know you saw elevated payoff this quarter. Just curious how you are seeing the pipeline going into the fourth quarter and where you are expecting loan growth to come in for the full year and into 2027. Lou de la Aguilera: The pipeline, Hannah, and this is Lou. Rob and I, and Sergio sit on the ongoing pipeline calls on a weekly basis, actually twice a week. So we're very involved with what's happening and have a good feel for it. But the pipeline going into the fourth quarter is about as strong as it's been for the year. Historically, the third quarter, the summer months, tend to be a little slow, and it pretty much was in line with what we did in the third quarter of last year. But I believe our loan production is going to be steady and stronger than in the third quarter and going into Q4. It's building, and it's pretty diversified, so we're very happy. The new additions that have joined the bank, both on the loan production side and on the depository side, are also going to be additive to those efforts. Rob Anderson: Yeah, maybe just to pick up on that, Hannah, on the loan growth. We'd still guide to the high single to low double-digit growth. Maybe near term, maybe on the lower end of that guidance. But certainly, as you get into 2027, we're being cautious outside what's happening macroeconomic-wise. We'll stick to our high single to low double-digit growth, which we've executed on fairly consistently over the past few years. Hannah Wynn: That's great to hear. Really appreciate the color there, guys. Thanks for taking my questions. I'll step back. Rob Anderson: Thank you, Hannah. Operator: Thank you. Our next question today comes from Feddie Strickland at Hovde Group. Please go ahead. Feddie Strickland: Hey, good morning. Just wanted to follow up on that last point on the payoffs in particular. I know they've stepped down some this quarter. I do not know whether that was planned amortization or just early payoffs. But does a lower amount of payoffs factor into your future assumptions here, just given high rates tend to produce payoffs? Rob Anderson: On the payoffs, if you looked at page 10, you can see both the new production, the amortization. In second quarter, it was around $189 million, and this quarter was $155 million. We typically do have, in the second quarter, a little bit more payoff activity in the correspondent book, which again is 180-day notes. We did see some of that activity this quarter as well. But right now we have over $100 million maturing in the fourth quarter. Again, a good chunk of that is on correspondent. So outside of that, we could have some payoffs in the yacht activity. We have mentioned that book moves pretty fast. We have seen some of that activity. Then also in the resi book as well. That probably was the elevated payoffs that we anticipated. But we would anticipate payoffs being at this level probably in the fourth quarter as well. Last year was $137 million in the fourth quarter, but we're anticipating a similar amount in the fourth quarter as we did this quarter. Feddie Strickland: Got it. Thanks, Rob. Just wanted to move over to the margin. Just as we think through hikes in 2027, could we see a scenario where, let's say we get some hikes late 2026, early 2027, the margin maybe faces a little bit of pressure initially on the funding side, but then as the asset side reprices, assuming we don't get hikes in the back half of the year, the margin maybe comes back up. Is that the right way to think about how we could see the margins play out next year? Rob Anderson: Yeah, I think that's right, Feddie. I think near term we could see a little pressurization, but we profile slightly liability sensitive to neutral. Again, I gave some color on the variable loan book. We have over $600 million that's going to reprice this quarter. So, our game plan is to, one, put the new deposit team to work. As they bring on relationship deposits, we're going to pay down some of the expensive wholesale funding that we have on our books this quarter. I think we have over $120 million at quarter end. We could pay that off. That should be helpful as well. But certainly, with any rate increases, I think we're well-balanced from a balance sheet perspective as neutral. But we'll also slow walk any type of non-relationship funding and really work on our deposit book to fuel the NIM. But I would still guide to the 340 level, and we'll see how that shakes out in the fourth quarter. But I think any rate increases we're positioned well for rate movement either way. Feddie Strickland: Got it. Just one last one real quick, if I could, on expenses. Appreciate the guide for the fourth quarter, understand the puts and takes there on salary and comp, and you guys are making new hires. With that in mind, how should we think about the growth rate for 2027? Does it step down from kind of the low double digits we saw in 2026? It's kind of implied by that. Is it high single digits? I mean, what should we think about in terms of expense growth for next year? Rob Anderson: Yeah. I would say mid to high single digits would be reasonable in terms of an expense growth. The way we look at expenses is that we will look at opportunistic hires, which we just filled in the fourth quarter. That may elevate the expenses from quarter to quarter. But over a longer period of time, we're still managing to the low 50s. Last quarter, we dipped down below 50% on the efficiency ratio. If you look at it from on a expense to average assets on a balance sheet on the assets we're putting it on, we're below the 2% benchmark. Typically, I think that performs well when you compare us to peers. Anything below 2% is typically a very efficient bank, and that's part of our cornerstone of our profitability profile. From time to time, it may spike with some hires, but overall, I would still guide to the low 50s and an expense ratio below 2% on assets. Feddie Strickland: Perfect. That's all I had. Thanks for the color, Rob. I'll step back. Rob Anderson: Thanks, Feddie. Operator: Thank you. As a reminder to ask a question, please press star then one. Our next question today comes from Stephen Scouten at Piper Sandler. Please go ahead. Stephen Scouten: Hey, good morning, everyone. Appreciate it. I really just have one question, then I can step back. Obviously, on this side of our world, we get a little myopic in the quarter-over-quarter versus the year-over-year. I think, Lou, you pointed out the year-over-year still looks really encouraging. It's a nice trend line. What do you think we misinterpreted maybe in terms of expectations from last quarter or what might have worsened but led to slightly worse quarter-over-quarter performance? I mean, obviously, the stock's responding as it is. Just kind of wanted to understand that a little bit more about where the disconnect was potentially. Rob Anderson: Yeah, maybe I'll take that one, Stephen. I think a couple of things stood out for us this quarter. Certainly, the elevated payoffs. We came off second quarter with a very strong loan growth. It was well above the higher end of that range in this quarter. Obviously, a little disappointing. But we tried to telegraph that Q3 is typically seasonal. So that would be one point. On the non-interest income, certainly I mentioned that we're a little bit disappointed in that activity, but it's really some transactional pieces. In a higher rate environment or where there is rising rates, the swap activity will be more challenging. In fact, in Q1 of this year when we had rates going down, we booked $1.4 million in swap activity. The second and third quarter, we booked nearly negligible dollar amounts. With a rising rate environment, I think we're going to be challenged on swaps. We need better execution on the SBA, that was disappointing, but that's episodic. We do have a number in the pipeline, so we expect the fourth quarter fee income to be a little stronger. Expenses ticked up a little bit, but again, we're going to invest when we have opportunistic hires. We did that in the third quarter. That was probably a miss as well. Certainly on the provision, that was flat because we basically had no loan growth quarter-over-quarter. Certainly you guys modeled probably a strong quarter on the backs of our record second quarter. But the third quarter was a little sluggish on balance sheet growth, but we still produced good returns in terms of profitability. I'd say over the longer term, if you march it out, we're still within the guidance that we provide. It's just not always going to be quarter-over-quarter. We'll have to moderate our comments to you when we have a record one so you don't get too hot on the next quarter out. But I'd probably characterize that as part of the disconnect, Stephen. Stephen Scouten: Thank you. Appreciate that color. Thank you. Operator: Thank you. That does conclude our question and answer session for today. I'd like to turn the conference back over to the management team for any closing remarks. Lou de la Aguilera: Thank you, operator, and thanks to everyone who joined us today. As we conclude the call, I want to reiterate how pleased we are with the continued progress of the organization. The third quarter reflects more than simply another strong financial performance. It demonstrates the strength of the strategy, the dedication of the employees, and the value of the relationships we've built with our clients throughout South Florida. We enter the fourth quarter with healthy business pipelines, strong capital levels, excellent credit quality, and a clear focus on continued execution. We are especially encouraged by the opportunities ahead as our newly added deposit production team begins to contribute to growth across Broward County and surrounding markets. These bankers bring proven relationship-building capabilities and meaningful deposit-gathering experience that we believe will support our growth objectives for years to come. We're equally enthusiastic about the continued build-out of our Doral-based commercial banking team. The Doral, Medley, and Hialeah corridor remains one of the most economically vibrant businesses market in South Florida, and we believe our investments in experienced lenders, SBA capabilities, treasury management services, and business development resources positions us exceptionally well to capitalize on these opportunities. Beyond growth, we remain focused on further diversifying our balance sheet, expanding non-interest income sources, deepening client relationships, and continuing to deliver consistent value to our shareholders. On the fifth anniversary of our IPO, we are proud of what the team has accomplished. Since becoming a public company in 2021, USCB has grown significantly in assets, loans, deposits, earnings, and shareholder value while maintaining the disciplined credit culture and conservative risk management principles that have defined the organization. Looking ahead, we remain optimistic about both South Florida economy and the opportunities available to USCB. Our markets continue to benefit from business investments, population growth, entrepreneurial activity, and long-term economic expansion. Combined with the strength of our franchise, talent of our team, we believe these factors position us well for continued profitable growth. On behalf of our board of directors, the management team, I would like to thank our employees, customers, and shareholders for their continued support and confidence in USCB. Thank you for joining us today, and we look forward to updating you on our continued progress next quarter. With that, we wish you all a great day. Operator: Thank you, sir. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day. 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. 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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 positions in and recommends USCB Financial. The Motley Fool has a disclosure policy. USCB Financial (USCB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in USCB Financial Holdings, Inc.? Here are five stocks we like better. - Record earnings: USCB Financial reported third-quarter net income of $9.5 million, or $0.51 per diluted share, up 13.3% year over year. Return on equity reached 16.03%, while tangible book value per share rose 7.5% to $12.42. - Loan and deposit growth supported performance: Loans increased 10% year over year to $2.3 billion, while deposits rose $101 million, or 4.3%, since year-end. Management is expanding deposit-gathering and commercial-lending teams and expects fourth-quarter net interest margin near 3.40%. - Credit and expenses require monitoring: Nonperforming loans rose to $7.7 million, or 33 basis points of loans, largely due to one closely monitored loan, although charge-offs remained minimal. Fourth-quarter expenses are expected to reach about $15 million or slightly higher as recent hires and investments take effect. USCB Financial (NASDAQ:USCB) reported record quarterly earnings for the third quarter of 2026, supported by year-over-year loan growth and net interest income, while management outlined continued investments in deposit gathering, commercial lending and technology. Net income totaled $9.5 million, or $0.51 per diluted share, compared with $0.49 per diluted share in the prior quarter and an increase of 13.3% from a year earlier. For the first nine months of 2026, the company generated approximately $28 million in net income, exceeding its reported earnings for any full year since its initial public offering, President and CEO Lou de la Aguilera said. → The AI Buildout Is Only 15% Complete—Here Is Where the Next Dollar Actually Goes Return on average equity was 16.03%, while return on average assets was 1.27%. Tangible book value per share increased 7.5% year over year to $12.42. Net interest income was $24.3 million, essentially unchanged from the prior quarter's strong level and up $3 million, or 14.2%, from a year earlier. The net interest margin was 3.37%, down from 3.49% in the second quarter but 23 basis points above the year-earlier level. The margin exited September at 3.41%. → GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Chief Financial Officer Rob Anderson said more than half of the sequential margin decline—seven basis points—resulted from lower loan fee income tied to payoff activity. Funding mix changes toward interest-bearing deposits and borrowings reduced the margin by three basis points, while lower income on other earning assets accounted for another two basis points. Average loans rose $50 million from the preceding quarter, representing 8.8% annualized growth, and increased $210 million, or 10%, year over year. At quarter-end, loans totaled $2.3 billion, up 9% from a year earlier. New loan production reached $156 million, up 18% from the third quarter of 2025, while payoffs and amortization totaled $155 million. → Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs The average coupon on new loans increased 12 basis points to 6.02%. Excluding correspondent banking loans, new production carried an average coupon of 6.29%, above the company's portfolio yield. Anderson said USCB had $610 million of loans repricing in the fourth quarter at a weighted-average yield of 6.37%, along with $106 million of maturing loans, primarily short-term correspondent banking loans. Management said it expects fourth-quarter net interest margin in the 3.40% range, broadly in line with the September exit rate. The company also expects to use returning public funds and new relationship deposits to reduce higher-cost wholesale borrowings. Average deposits were $2.5 billion, up $22.3 million from the second quarter, or 3.6% on an annualized basis. Average demand deposit account balances increased $40.7 million, or 7.2%, from a year earlier. Total deposits were up $101 million, or 4.3%, since year-end on an end-of-period basis. Quarter-end balances included an approximately $54 million seasonal outflow of public funds, which management expects to return later in the year. Excluding public funds, deposits grew about $48 million during the quarter, Anderson said. Total deposit costs were 2.19%, down 34 basis points from a year earlier, while the cost of interest-bearing deposits was unchanged from the second quarter at 2.90%. Anderson said a modest increase in total deposit costs during the quarter reflected mix changes as some demand deposit balances shifted into interest-bearing accounts rather than a change in pricing. During October, the company added a four-person deposit-focused banking team from a national competitor. De la Aguilera said the team had collectively managed more than $700 million in deposits and will be based in the company's Hollywood and Aventura banking centers, supporting its Broward County presence. USCB also continued building its fourth commercial banking production team, headquartered in Doral. The company has hired two commercial lenders and a portfolio manager, with additional roles expected to be filled in the fourth quarter. Management said the team will focus on commercial lending, treasury management, owner-occupied real estate financing, business deposits and expanded SBA lending in the Doral, Medley and Hialeah corridor. Credit quality remained largely stable, though nonperforming loans increased to $7.7 million, or 33 basis points of total loans, from $2.1 million, or nine basis points, at the end of the second quarter. Chief Credit Officer Sergio Garrido said the increase was primarily attributable to one loan that the company is monitoring and managing closely. Classified loans rose to 44 basis points of total loans from 20 basis points at June 30. Net charge-offs were $23,000 for the quarter, while the provision for credit losses was $53,000. The allowance for credit losses increased $317,000 to approximately $27 million, equal to 1.16% of total loans, compared with 1.15% in the preceding quarter. Garrido said the rise in nonperforming and classified loans was concentrated, while loss experience remained limited. Non-interest income was $2.7 million, which Anderson said was below management's expectations. Client demand for swaps slowed amid elevated yields, and SBA gain-on-sale activity was lighter than planned. Wire fees, the company's largest recurring fee category, rose to $645,000, supported by correspondent banking relationships. Management said it expects non-interest income to move toward $3.5 million per quarter over time, although the timing will depend largely on SBA and swap activity. Non-interest income represented 12.8% of total revenue year to date. Non-interest expense totaled $14.7 million, driven primarily by salaries and benefits. Full-time headcount increased to 222 from 216 as USCB added sales personnel and provided merit increases and performance-based incentives. The efficiency ratio was 54.62%, while non-interest expense represented 1.97% of average assets. Anderson said fourth-quarter expenses should be approximately $15 million or slightly higher, reflecting a full quarter of recent hires, the new deposit team and incentives. For 2027, he said management expects expense growth in the mid- to high-single-digit range while continuing to target an efficiency ratio in the low 50% range over time. The company's total risk-based capital ratio increased to 14.07% from 13.88% in the prior quarter. On Oct. 19, USCB's board declared a quarterly cash dividend of $0.125 per share, payable Dec. 4 to shareholders of record as of Nov. 16, 2026. USCB Financial Corp. is the bank holding company for U.S. Century Bank, a community bank headquartered in South Florida. The bank provides financial products and services to individuals, businesses, professionals and nonprofit organizations in the region, with a particular focus on the Miami-Dade County market and surrounding South Florida communities. U.S. Century Bank offers deposit accounts, commercial and residential real estate loans, commercial and industrial lending, consumer loans and small business financing. 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 Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

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. - Delivered record quarterly net income of $9.5 million, with year-to-date earnings already surpassing any full-year performance since the company's IPO. - Performance was supported by a diversified, relationship-driven model where specialized banking verticals now generate approximately 30% of total deposits. - Management attributed the quarter's consistency to disciplined execution across multiple economic cycles, rather than a single favorable market trend. - Strategic expansion included the 'lift-out' of a seasoned four-person deposit team from a national competitor, bringing over $700 million in managed deposit potential. - Launched a fourth commercial banking production team in the Doral-Medley-Hialeah corridor to target vibrant small business and industrial concentrations. - Maintained a conservative risk profile with non-performing assets at only 0.26% of total assets and negligible charge-offs of $23,000. - Management guides to a Net Interest Margin (NIM) in the 3.40% range for Q4, assuming the ability to hold or improve levels based on September's exit rate. - Loan growth is projected to remain in the high single-digit to low double-digit range, though management noted it may lean toward the lower end near-term. - Expects to pay down approximately $120 million in higher-cost wholesale borrowings in Q4 using seasonal public fund inflows and new relationship deposits. - Non-interest income is targeted to return toward $3.5 million per quarter, though the pace depends on client demand for SBA loans and interest rate swaps. - Expense growth for 2027 is projected at mid-to-high single digits, with a commitment to maintaining an efficiency ratio in the low 50s. - Non-performing loans increased to 33 basis points, primarily driven by a single concentrated loan that management is monitoring closely. - The balance sheet is characterized as modestly liability-sensitive to neutral, with interest rate caps in place that trigger if SOFR reaches 4.50%. - Experienced a seasonal outflow of approximately $54 million in public funds during Q3, which is expected to return to the balance sheet later in the year. - Tangible book value was impacted by a rate-driven mark on the securities portfolio, though management expects this to accrete back as securities mature. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that $610 million in loans are set to reprice in Q4 at a weighted average yield of 6.37%, providing a natural hedge against higher rates. - New loan production (excluding correspondent banking) is coming on at 6.29%, which is 18 basis points above the current portfolio yield. - The Q4 pipeline is described as being as strong as it has been all year, with production expected to be steadier and stronger than Q3. - New hires in both lending and deposit gathering are expected to be additive to production volumes starting in the fourth quarter. - Management acknowledged softness in transactional fee lines, specifically swaps and SBA gain-on-sale activity, which were lighter than planned. - Elevated loan payoffs of $155 million, while lower than Q2, still acted as a headwind to net balance sheet growth during the seasonal slowdown.

USCB Financial Holdings, Inc. (USCB) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -7.27%. A quarter ago, it was expected that this company would post earnings of $0.49 per share when it actually produced earnings of $0.49, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. USCB Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $26.97 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 7.4%. This compares to year-ago revenues of $24.96 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 21% since the beginning of the year versus the S&P 500's gain of 13.3%. While USCB Financial has outperformed 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 $0.56 on $29.66 million in revenues for the coming quarter and $2.09 on $112.91 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 27% 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. One other stock from the same industry, Seacoast Banking (SBCF), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 27. This holding company for Seacoast National Bank is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. Seacoast Banking's revenues are expected to be $215.65 million, up 36.4% 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 Seacoast Banking Corporation of Florida (SBCF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MIAMI, Oct. 22, 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 $9.5 million or $0.51 per fully diluted share for the three months ended September 30, 2026, compared with net income of $8.9 million or $0.45 per fully diluted share for the same period in 2025. "Third quarter net income of $9.5 million was the highest quarterly net income since our initial public offering in 2021, and net income of $28.0 million for the first nine months of 2026 has already surpassed full-year net income for every year since our IPO," said Luis de la Aguilera, Chairman, President and CEO. "We delivered a return on average equity of 16.03% and a return on average assets of 1.27%. Compared with the third quarter of 2025, net interest income grew 14.2%, loans grew 9.0%, and our net interest margin expanded 23 basis points to 3.37%. We remain focused on disciplined growth and building 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 September 30, 2026 compared to at or for the quarter ended September 30, 2025 and annualized where appropriate. Profitability - Annualized return on average assets for the quarters ended September 30, 2026 and 2025 was 1.27%. - Annualized return on average stockholders' equity for the quarter ended September 30, 2026 was 16.03% compared to 15.74% for the third quarter of 2025. - The efficiency ratio for the quarter ended September 30, 2026 was 54.62% compared to 52.28% for the third quarter of 2025. - Net interest margin for the quarter ended September 30, 2026 was 3.37% compared to 3.14% for the third quarter of 2025. - Net interest income before provision for credit losses was $24.3 million for the quarter ended September 30, 2026, an increase of $3.0 million or 14.2% compared to $21.3 million for the same period in 2025. Balance Sheet - Total assets were $3.0 billion at September 30, 2026, representing an increase of $243.5 million or 8.8% from $2.8 billion at September 30, 2025. - Total loans held for investment were $2.3 billion at September 30, 2026, representing an increase of $191.1 million or 9.0% from $2.1 billion at September 30, 2025. - Total deposits were $2.4 billion at September 30, 2026, representing a decrease of $9.3 million or 0.4% from $2.5 billion at September 30, 2025. - Total stockholders' equity was $229.4 million at September 30, 2026, representing an increase of $20.3 million or 9.7% from $209.1 million at September 30, 2025. Total stockholders' equity included accumulated other comprehensive loss of $43.3 million at September 30, 2026 compared to accumulated other comprehensive loss of $37.8 million at September 30, 2025. Asset Quality - The allowance for credit losses ("ACL") increased by $2.1 million to $27.0 million at September 30, 2026 from $25.0 million at September 30, 2025. - The ACL represented 1.16% of total loans at September 30, 2026 and 1.17% of total loans at September 30, 2025. - The provision for credit losses was $53 thousand for the quarter ended September 30, 2026, a decrease of $52 thousand compared to $105 thousand for the same period in 2025. - The ratio of non-performing loans to total loans was 0.33% for the quarter ended September 30, 2026 and 0.06% for the quarter ended September 30, 2025. Non-performing loans totaled $7.7 million at September 30, 2026 and $1.3 million at September 30, 2025. Non-interest Income and Non-interest Expense - Non-interest income was $2.7 million for the three months ended September 30, 2026, a decrease of $1.0 million or 27.5% compared to $3.7 million for the same period in 2025. - Non-interest expense was $14.7 million for the three months ended September 30, 2026, an increase of $1.7 million or 12.9% compared to $13.0 million for the three months ended September 30, 2025. Capital - On October 19, 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 December 4, 2026 to shareholders of record at the close of business on November 16, 2026. - As of September 30, 2026, total risk-based capital ratios for the Company and the Bank were 14.07% and 13.93%, respectively, well in excess of the well-capitalized minimum threshold regulatory requirements. - Tangible book value per common share (non-GAAP financial measure) was $12.42 at September 30, 2026, representing an increase of $0.87 or 7.6% from $11.55 at September 30, 2025. At September 30, 2026, tangible book value per common share was negatively affected by ($2.35) per share due to an accumulated other comprehensive loss of $43.3 million primarily due to changes in the market value of the Company's available for sale securities. At September 30, 2025, tangible book value per common share was negatively affected by ($2.09) per share due to an accumulated other comprehensive loss of $37.8 million. Conference Call and Webcast The Company will host a conference call on Friday, October 23, 2026, at 11:00 a.m. Eastern Time to discuss the Company's unaudited financial results for the quarter ended September 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 potential 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 Relations [email protected] Media Relations Martha Guerra-Kattou [email protected] USCB FINANCIAL HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands, except per share data) | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | | 2026 | | 2025 | Interest income: | | | | | | | | | | | Loans, including fees | $ | 35,547 | | $ | 32,866 | | | $ | 103,235 | | $ | 95,057 | Investment securities | | 4,013 | | | 3,522 | | | | 11,282 | | | 9,978 | Interest-bearing deposits in financial institutions | | 639 | | | 1,332 | | | | 2,294 | | | 2,817 | Total interest income | | 40,199 | | | 37,720 | | | | 116,811 | | | 107,852 | Interest expense: | | | | | | | | | | | Interest-bearing checking deposits | | 357 | | | 286 | | | | 978 | | | 909 | Savings and money market deposits | | 8,554 | | | 10,343 | | | | 25,165 | | | 29,088 | Time deposits | | 4,974 | | | 5,036 | | | | 14,302 | | | 13,297 | FHLB advances | | 1,213 | | | 377 | | | | 3,229 | | | 2,731 | Subordinated notes | | 801 | | | 404 | | | | 2,402 | | | 404 | Total interest expense | | 15,899 | | | 16,446 | | | | 46,076 | | | 46,429 | Net interest income before provision for credit losses | | 24,300 | | | 21,274 | | | | 70,735 | | | 61,423 | Provision for credit losses | | 53 | | | 105 | | | | 2,121 | | | 1,817 | Net interest income after provision for credit losses | | 24,247 | | | 21,169 | | | | 68,614 | | | 59,606 | Non-interest income: | | | | | | | | | | | Service fees | | 1,542 | | | 2,661 | | | | 7,243 | | | 7,394 | Gain (loss) on sale of securities available-for-sale, net | | - | | | (28 | ) | | | 14 | | | (28 | ) Gain on sale of loans held for sale, net | | 165 | | | 128 | | | | 271 | | | 804 | Other non-interest income | | 965 | | | 923 | | | | 2,854 | | | 2,600 | Total non-interest income | | 2,672 | | | 3,684 | | | | 10,382 | | | 10,770 | Non-interest expense: | | | | | | | | | | | Salaries and employee benefits | | 9,295 | | | 7,909 | | | | 26,402 | | | 23,499 | Occupancy | | 1,352 | | | 1,382 | | | | 4,037 | | | 4,003 | Regulatory assessments and fees | | 392 | | | 377 | | | | 1,273 | | | 1,194 | Consulting and legal fees | | 663 | | | 585 | | | | 1,807 | | | 1,041 | Network and information technology services | | 802 | | | 656 | | | | 1,886 | | | 1,725 | Other operating expense | | 2,227 | | | 2,139 | | | | 7,003 | | | 6,272 | Total non-interest expense | | 14,731 | | | 13,048 | | | | 42,408 | | | 37,734 | Income before income tax expense | | 12,188 | | | 11,805 | | | | 36,588 | | | 32,642 | Income tax expense | | 2,660 | | | 2,866 | | | | 8,631 | | | 7,905 | Net income | $ | 9,528 | | $ | 8,939 | | | $ | 27,957 | | $ | 24,737 | Per share information: | | | | | | | | | | | Net income per common share, basic | $ | 0.52 | | $ | 0.46 | | | $ | 1.52 | | $ | 1.25 | Net income per common share, diluted | $ | 0.51 | | $ | 0.45 | | | $ | 1.51 | | $ | 1.23 | Cash dividends declared | $ | 0.125 | | $ | 0.10 | | | $ | 0.375 | | $ | 0.30 | Weighted average shares outstanding: | | | | | | | | | | | Common shares, basic | | 18,467,835 | | | 19,524,798 | | | | 18,343,870 | | | 19,866,514 | Common shares, diluted | | 18,662,385 | | | 19,755,820 | | | | 18,518,527 | | | 20,106,050 | USCB FINANCIAL HOLDINGS, INC. SELECTED FINANCIAL DATA (UNAUDITED) (Dollars in thousands, except per share data) | | | | | | | | | | | | | | | As of or For the Three Months Ended | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 Income statement data: | | | | | | | | | | | | | | Net interest income before provision for credit losses | $ | 24,300 | | | $ | 24,387 | | | $ | 22,048 | | | $ | 22,207 | | | $ | 21,274 | Provision for credit losses | | 53 | | | | 1,267 | | | | 801 | | | | 480 | | | | 105 | Net interest income after provision for credit losses | | 24,247 | | | | 23,120 | | | | 21,247 | | | | 21,727 | | | | 21,169 | Service fees | | 1,542 | | | | 2,601 | | | | 3,100 | | | | 2,209 | | | | 2,661 | Gain (loss) on sale of securities available for sale, net | | - | | | | - | | | | 14 | | | | (7,498 | ) | | | (28 | ) Gain on sale of loans held for sale, net | | 165 | | | | - | | | | 106 | | | | 197 | | | | 128 | Other non-interest income | | 965 | | | | 959 | | | | 930 | | | | 914 | | | | 923 | Total non-interest income | | 2,672 | | | | 3,560 | | | | 4,150 | | | | (4,178 | ) | | | 3,684 | Salaries and employee benefits | | 9,295 | | | | 8,537 | | | | 8,570 | | | | 8,668 | | | | 7,909 | Occupancy | | 1,352 | | | | 1,369 | | | | 1,316 | | | | 1,327 | | | | 1,382 | Regulatory assessments and fees | | 392 | | | | 397 | | | | 484 | | | | 443 | | | | 377 | Consulting and legal fees | | 663 | | | | 583 | | | | 561 | | | | 900 | | | | 585 | Network and information technology services | | 802 | | | | 524 | | | | 560 | | | | 599 | | | | 656 | Other operating expense | | 2,227 | | | | 2,556 | | | | 2,220 | | | | 2,338 | | | | 2,139 | Total non-interest expense | | 14,731 | | | | 13,966 | | | | 13,711 | | | | 14,275 | | | | 13,048 | Income before income tax expense | | 12,188 | | | | 12,714 | | | | 11,686 | | | | 3,274 | | | | 11,805 | Income tax expense | | 2,660 | | | | 3,636 | | | | 2,335 | | | | 1,911 | | | | 2,866 | Net income | $ | 9,528 | | | $ | 9,078 | | | $ | 9,351 | | | $ | 1,363 | | | $ | 8,939 | Per share information: | | | | | | | | | | | | | | Net income per common share, basic | $ | 0.52 | | | $ | 0.49 | | | $ | 0.51 | | | $ | 0.08 | | | $ | 0.46 | Net income per common share, diluted | $ | 0.51 | | | $ | 0.49 | | | $ | 0.51 | | | $ | 0.07 | | | $ | 0.45 | Cash dividends declared | $ | 0.125 | | | $ | 0.125 | | | $ | 0.125 | | | $ | 0.10 | | | $ | 0.10 | Balance sheet data (at period-end): | | | | | | | | | | | | | | Cash and cash equivalents | $ | 92,727 | | | $ | 118,154 | | | $ | 78,963 | | | $ | 38,477 | | | $ | 56,811 | Securities available-for-sale | $ | 342,624 | | | $ | 332,859 | | | $ | 277,160 | | | $ | 307,490 | | | $ | 324,179 | Securities held-to-maturity | $ | 133,101 | | | $ | 136,127 | | | $ | 149,931 | | | $ | 153,941 | | | $ | 156,365 | Total securities | $ | 475,725 | | | $ | 468,986 | | | $ | 427,091 | | | $ | 461,431 | | | $ | 480,544 | Loans held for investment (1) | $ | 2,322,094 | | | $ | 2,322,385 | | | $ | 2,241,051 | | | $ | 2,189,257 | | | $ | 2,130,966 | Allowance for credit losses | $ | (27,018 | ) | | $ | (26,701 | ) | | $ | (26,102 | ) | | $ | (25,500 | ) | | $ | (24,964 | ) Total assets | $ | 3,011,481 | | | $ | 3,019,701 | | | $ | 2,845,735 | | | $ | 2,791,540 | | | $ | 2,767,945 | Non-interest-bearing demand deposits | $ | 601,792 | | | $ | 618,062 | | | $ | 620,714 | | | $ | 583,860 | | | $ | 584,240 | Interest-bearing deposits | $ | 1,844,523 | | | $ | 1,834,209 | | | $ | 1,872,866 | | | $ | 1,761,220 | | | $ | 1,871,374 | Total deposits | $ | 2,446,315 | | | $ | 2,452,271 | | | $ | 2,493,580 | | | $ | 2,345,080 | | | $ | 2,455,614 | FHLB advances | $ | 232,000 | | | $ | 240,900 | | | $ | 53,000 | | | $ | 158,250 | | | $ | 11,000 | Subordinated notes | $ | 39,414 | | | $ | 39,376 | | | $ | 39,338 | | | $ | 39,300 | | | $ | 39,262 | Total liabilities | $ | 2,782,119 | | | $ | 2,786,463 | | | $ | 2,622,489 | | | $ | 2,574,357 | | | $ | 2,558,850 | Total stockholders' equity | $ | 229,362 | | | $ | 233,238 | | | $ | 223,246 | | | $ | 217,183 | | | $ | 209,095 | Capital ratios:(2) | | | | | | | | | | | | | | Leverage ratio | | 8.88 | % | | | 8.81 | % | | | 8.61 | % | | | 8.46 | % | | | 8.47 | % Common equity tier 1 capital | | 11.23 | % | | | 11.01 | % | | | 11.09 | % | | | 10.92 | % | | | 11.17 | % Tier 1 risk-based capital | | 11.23 | % | | | 11.01 | % | | | 11.09 | % | | | 10.92 | % | | | 11.17 | % Total risk-based capital | | 14.07 | % | | | 13.88 | % | | | 14.09 | % | | | 13.91 | % | | | 14.20 | % | | | | | | | | | | | | | | (1) Loan amounts include deferred fees/costs. (2) Reflects the Company's regulatory capital ratios. The Bank's total risk-based capital ratio at September 30, 2026 was 13.93%. USCB FINANCIAL HOLDINGS, INC. AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED) (Dollars in thousands) | | | | | | | | | | | | | | | As of or For the Three Months Ended | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 Average balance sheet data: | | | | | | | | | | | | | | Cash and cash equivalents | $ | 81,521 | | | $ | 87,949 | | | $ | 112,107 | | | $ | 82,338 | | | $ | 139,389 | Securities available-for-sale | $ | 334,203 | | | $ | 314,581 | | | $ | 295,065 | | | $ | 332,356 | | | $ | 299,892 | Securities held-to-maturity | $ | 134,917 | | | $ | 140,533 | | | $ | 152,144 | | | $ | 155,269 | | | $ | 157,702 | Total securities | $ | 469,120 | | | $ | 455,114 | | | $ | 447,209 | | | $ | 487,625 | | | $ | 457,594 | Loans held for investment(1) | $ | 2,309,091 | | | $ | 2,258,965 | | | $ | 2,177,734 | | | $ | 2,130,898 | | | $ | 2,099,043 | Total assets | $ | 2,965,481 | | | $ | 2,900,725 | | | $ | 2,834,717 | | | $ | 2,799,863 | | | $ | 2,798,115 | Interest-bearing deposits | $ | 1,900,985 | | | $ | 1,856,763 | | | $ | 1,842,283 | | | $ | 1,857,218 | | | $ | 1,887,545 | Non-interest-bearing demand deposits | $ | 610,271 | | | $ | 632,198 | | | $ | 584,784 | | | $ | 595,969 | | | $ | 569,522 | Total deposits | $ | 2,511,256 | | | $ | 2,488,961 | | | $ | 2,427,067 | | | $ | 2,453,187 | | | $ | 2,457,067 | FHLB advances | $ | 121,110 | | | $ | 100,685 | | | $ | 110,045 | | | $ | 51,462 | | | $ | 40,065 | Subordinated notes | $ | 39,389 | | | $ | 39,351 | | | $ | 39,313 | | | $ | 39,287 | | | $ | 26,029 | Total liabilities | $ | 2,729,596 | | | $ | 2,671,792 | | | $ | 2,612,491 | | | $ | 2,587,470 | | | $ | 2,572,799 | Total stockholders' equity | $ | 235,885 | | | $ | 228,933 | | | $ | 222,226 | | | $ | 212,393 | | | $ | 225,316 | Performance ratios: | | | | | | | | | | | | | | Return on average assets (2) | | 1.27 | % | | | 1.26 | % | | | 1.34 | % | | | 0.19 | % | | | 1.27 | % Return on average equity (2) | | 16.03 | % | | | 15.90 | % | | | 17.07 | % | | | 2.55 | % | | | 15.74 | % Net interest margin (2) | | 3.37 | % | | | 3.49 | % | | | 3.27 | % | | | 3.27 | % | | | 3.14 | % Non-interest income to average assets (2) | | 0.36 | % | | | 0.49 | % | | | 0.59 | % | | | (0.59 | )% | | | 0.52 | % Non-interest expense to average assets (2) | | 1.97 | % | | | 1.93 | % | | | 1.96 | % | | | 2.02 | % | | | 1.85 | % Efficiency ratio (3) | | 54.62 | % | | | 49.97 | % | | | 52.34 | % | | | 79.18 | % | | | 52.28 | % Loans by type (at period end): (4) | | | | | | | | | | | | | | Residential real estate | $ | 347,565 | | | $ | 356,747 | | | $ | 346,917 | | | $ | 307,692 | | | $ | 316,557 | Commercial real estate | $ | 1,349,240 | | | $ | 1,314,367 | | | $ | 1,259,642 | | | $ | 1,244,835 | | | $ | 1,226,121 | Commercial and industrial | $ | 298,362 | | | $ | 300,265 | | | $ | 291,333 | | | $ | 295,548 | | | $ | 269,430 | Correspondent banks | $ | 128,168 | | | $ | 137,912 | | | $ | 128,722 | | | $ | 127,968 | | | $ | 104,598 | Consumer and other | $ | 193,688 | | | $ | 207,404 | | | $ | 207,794 | | | $ | 207,215 | | | $ | 207,939 | Asset quality data: | | | | | | | | | | | | | | Allowance for credit losses to total loans | | 1.16 | % | | | 1.15 | % | | | 1.16 | % | | | 1.16 | % | | | 1.17 | % Allowance for credit losses to non-performing loans | | 351 | % | | | 1243 | % | | | 717 | % | | | 813 | % | | | 1906 | % Total non-performing loans(5) | $ | 7,689 | | | $ | 2,148 | | | $ | 3,640 | | | $ | 3,138 | | | $ | 1,310 | Non-performing loans to total loans | | 0.33 | % | | | 0.09 | % | | | 0.16 | % | | | 0.14 | % | | | 0.06 | % Non-performing assets to total assets(5) | | 0.26 | % | | | 0.07 | % | | | 0.13 | % | | | 0.11 | % | | | 0.05 | % Net charge-offs (recoveries of) to average loans (2) | | 0.00 | % | | | 0.05 | % | | | (0.00 | )% | | | (0.00 | )% | | | (0.00 | )% Net charge-offs (recoveries) of credit losses | $ | 23 | | | $ | 288 | | | $ | (4 | ) | | $ | (11 | ) | | $ | (4 | ) Interest rates and yields:(2) | | | | | | | | | | | | | | Loans held for investment | | 6.11 | % | | | 6.20 | % | | | 6.11 | % | | | 6.16 | % | | | 6.21 | % Investment securities | | 3.34 | % | | | 3.35 | % | | | 3.05 | % | | | 3.01 | % | | | 3.03 | % Total interest-earning assets | | 5.57 | % | | | 5.67 | % | | | 5.49 | % | | | 5.54 | % | | | 5.56 | % Deposits(6) | | 2.19 | % | | | 2.16 | % | | | 2.20 | % | | | 2.28 | % | | | 2.53 | % FHLB advances | | 3.97 | % | | | 3.89 | % | | | 3.83 | % | | | 3.91 | % | | | 3.73 | % Subordinated notes | | 8.07 | % | | | 8.15 | % | | | 8.26 | % | | | 8.09 | % | | | 6.16 | % Total interest-bearing liabilities | | 3.06 | % | | | 3.05 | % | | | 3.05 | % | | | 3.14 | % | | | 3.34 | % Other information: | | | | | | | | | | | | | | Full-time equivalent employees | | 222 | | | | 216 | | | | 211 | | | | 204 | | | | 206 | | | | | | | | | | | | | | | (1) Loan amounts include deferred fees/costs. (2) Annualized. (3) Efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and total non-interest income. (4) Loan amounts exclude deferred fees/costs. (5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there was no other real estate owned (OREO) recorded at any of the dates presented. (6) Reflects effect of non-interest-bearing deposits. USCB FINANCIAL HOLDINGS, INC. NET INTEREST MARGIN (UNAUDITED) (Dollars in thousands) | | | | | | | | | | | | | | | | Three Months Ended September 30, | 2026 | | | 2025 | | Average Balance | | Interest | | Yield/Rate (1) | | Average Balance | | Interest | | Yield/Rate (1) Assets | | | | | | | | | | | | | | | Interest-earning assets: | | | | | | | | | | | | | | | Loans held for investment(2) | $ | 2,309,091 | | $ | 35,547 | | 6.11 | % | | $ | 2,099,043 | | $ | 32,866 | | 6.21 | % Investment securities (3) | | 476,825 | | | 4,013 | | 3.34 | % | | | 461,303 | | | 3,522 | | 3.03 | % Other interest-earning assets | | 75,399 | | | 639 | | 3.36 | % | | | 130,740 | | | 1,332 | | 4.04 | % Total interest-earning assets | | 2,861,315 | | | 40,199 | | 5.57 | % | | | 2,691,086 | | | 37,720 | | 5.56 | % Non-interest-earning assets | | 104,166 | | | | | | | | 107,029 | | | | | Total assets | $ | 2,965,481 | | | | | | | $ | 2,798,115 | | | | | Liabilities and stockholders' equity | | | | | | | | | | | | | | | Interest-bearing liabilities: | | | | | | | | | | | | | | | Interest-bearing checking deposits | $ | 68,264 | | | 357 | | 2.07 | % | | $ | 47,338 | | | 286 | | 2.40 | % Savings and money market deposits | | 1,286,075 | | | 8,554 | | 2.64 | % | | | 1,319,862 | | | 10,343 | | 3.11 | % Time deposits | | 546,646 | | | 4,974 | | 3.61 | % | | | 520,345 | | | 5,036 | | 3.84 | % Total interest-bearing deposits | | 1,900,985 | | | 13,885 | | 2.90 | % | | | 1,887,545 | | | 15,665 | | 3.29 | % FHLB advances | | 121,110 | | | 1,213 | | 3.97 | % | | | 40,065 | | | 377 | | 3.73 | % Subordinated notes | | 39,389 | | | 801 | | 8.07 | % | | | 26,029 | | | 404 | | 6.16 | % Total interest-bearing liabilities | | 2,061,484 | | | 15,899 | | 3.06 | % | | | 1,953,639 | | | 16,446 | | 3.34 | % Non-interest-bearing demand deposits | | 610,271 | | | | | | | | 569,522 | | | | | Other non-interest-bearing liabilities | | 57,841 | | | | | | | | 49,638 | | | | | Total liabilities | | 2,729,596 | | | | | | | | 2,572,799 | | | | | Stockholders' equity | | 235,885 | | | | | | | | 225,316 | | | | | Total liabilities and stockholders' equity | $ | 2,965,481 | | | | | | | $ | 2,798,115 | | | | | Net interest income | | | | $ | 24,300 | | | | | | | $ | 21,274 | | Net interest spread (4) | | | | | | | 2.51 | % | | | | | | | | 2.22 | % Net interest margin (5) | | | | | | | 3.37 | % | | | | | | | | 3.14 | % | | | | | | | | | | | | | | | (1) Annualized. (2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs. (3) At fair value except for securities held-to-maturity. This amount includes FHLB stock. (4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities. (5) Net interest margin is the ratio of net interest income to total interest-earning assets. USCB FINANCIAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands) | | | | | | | | | | | | | | | As of or For the Three Months Ended | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 Pre-tax pre-provision ("PTPP") income:(1) | | | | | | | | | | | | | | Net income | $ | 9,528 | | | $ | 9,078 | | | $ | 9,351 | | | $ | 1,363 | | | $ | 8,939 | Plus: Income tax expense | | 2,660 | | | | 3,636 | | | | 2,335 | | | | 1,911 | | | | 2,866 | Plus: Provision for credit losses | | 53 | | | | 1,267 | | | | 801 | | | | 480 | | | | 105 | PTPP income | $ | 12,241 | | | $ | 13,981 | | | $ | 12,487 | | | $ | 3,754 | | | $ | 11,910 | | | | | | | | | | | | | | | PTPP return on average assets:(1) | | | | | | | | | | | | | | PTPP income | $ | 12,241 | | | $ | 13,981 | | | $ | 12,487 | | | $ | 3,754 | | | $ | 11,910 | Average assets | $ | 2,965,481 | | | $ | 2,900,725 | | | $ | 2,834,717 | | | $ | 2,799,863 | | | $ | 2,798,115 | PTPP return on average assets (2) | | 1.64 | % | | | 1.93 | % | | | 1.79 | % | | | 0.53 | % | | | 1.69 | % | | | | | | | | | | | | | | Operating net income:(1) | | | | | | | | | | | | | | Net income | $ | 9,528 | | | $ | 9,078 | | | $ | 9,351 | | | $ | 1,363 | | | $ | 8,939 | Less: Net gain (loss) on sale of securities | | - | | | | - | | | | 14 | | | | (7,498 | ) | | | (28 | ) Less: Tax effect on sale of securities | | - | | | | - | | | | (4 | ) | | | 1,900 | | | | 7 | Plus: Tax (benefit) liability expense from prior periods | | - | | | | - | | | | (619 | ) | (3) | | 1,096 | | (4) | | - | Operating net income | $ | 9,528 | | | $ | 9,078 | | | $ | 8,722 | | | $ | 8,057 | | | $ | 8,960 | | | | | | | | | | | | | | | Operating return on average assets:(1) | | | | | | | | | | | | | | Operating net income | $ | 9,528 | | | $ | 9,078 | | | $ | 8,722 | | | $ | 8,057 | | | $ | 8,960 | Average assets | $ | 2,965,481 | | | $ | 2,900,725 | | | $ | 2,834,717 | | | $ | 2,799,863 | | | $ | 2,798,115 | Operating net income return on average assets (2) | | 1.27 | % | | | 1.26 | % | | | 1.25 | % | | | 1.14 | % | | | 1.27 | % | | | | | | | | | | | | | | Operating return on average equity:(1) | | | | | | | | | | | | | | Operating net income | $ | 9,528 | | | $ | 9,078 | | | $ | 8,722 | | | $ | 8,057 | | | $ | 8,960 | Average equity | $ | 235,885 | | | $ | 228,933 | | | $ | 222,226 | | | $ | 212,393 | | | $ | 225,316 | Operating net income return on average equity (2) | | 16.03 | % | | | 15.90 | % | | | 15.92 | % | | | 15.05 | % | | | 15.78 | % | | | | | | | | | | | | | | Operating revenue:(1) | | | | | | | | | | | | | | Net interest income | $ | 24,300 | | | $ | 24,387 | | | $ | 22,048 | | | $ | 22,207 | | | $ | 21,274 | Non-interest income | | 2,672 | | | | 3,560 | | | | 4,150 | | | | (4,178 | ) | | | 3,684 | Less: Net gain (loss) on sale of securities | | - | | | | - | | | | 14 | | | | (7,498 | ) | | | (28 | ) Operating revenue | $ | 26,972 | | | $ | 27,947 | | | $ | 26,184 | | | $ | 25,527 | | | $ | 24,986 | | | | | | | | | | | | | | | Operating efficiency ratio:(1) | | | | | | | | | | | | | | Total non-interest expense | $ | 14,731 | | | $ | 13,966 | | | $ | 13,711 | | | $ | 14,275 | | | $ | 13,048 | Operating revenue | $ | 26,972 | | | $ | 27,947 | | | $ | 26,184 | | | $ | 25,527 | | | $ | 24,986 | Operating efficiency ratio | | 54.62 | % | | | 49.97 | % | | | 52.36 | % | | | 55.92 | % | | | 52.22 | % | | | | | | | | | | | | | | (1) The Company believes these non-GAAP financial measurements are key indicators of the ongoing earnings power of the Company. (2) Annualized. (3) The Company recognized a $619 thousand income tax benefit in the first quarter of 2026 due to an adjustment to the deferred tax asset calculation from 2025. (4) State tax liability expenses for 2024 and for the first three quarters of 2025 were recognized during the fourth quarter of 2025. The state tax expense is related to taxes due on interest income on loans whose collateral is located outside of the State of Florida. USCB FINANCIAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands, except per share data) | | | | | | | | | | | | | | | As of or For the Three Months Ended | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 Tangible book value per common share (at period-end):(1) | | | | | | | | | | | | | | Total stockholders' equity | $ | 229,362 | | | $ | 233,238 | | | $ | 223,246 | | | $ | 217,183 | | | $ | 209,095 | Less: Intangible assets | | - | | | | - | | | | - | | | | - | | | | - | Tangible stockholders' equity(3) | $ | 229,362 | | | $ | 233,238 | | | $ | 223,246 | | | $ | 217,183 | | | $ | 209,095 | | | | | | | | | | | | | | | Total shares issued and outstanding (at period-end): | | | | | | | | | | | | | | Total common shares issued and outstanding | | 18,465,077 | | | | 18,459,470 | | | | 18,257,400 | | | | 18,137,885 | | | | 18,107,385 | Tangible book value per common share(2) | $ | 12.42 | | | $ | 12.64 | | | $ | 12.23 | | | $ | 11.97 | | | $ | 11.55 | | | | | | | | | | | | | | | Operating diluted net income per common share:(1) | | | | | | | | | | | | | | Operating net income | $ | 9,528 | | | $ | 9,078 | | | $ | 8,722 | | | $ | 8,057 | | | $ | 8,960 | Total weighted average diluted shares of common stock | | 18,662,385 | | | | 18,509,572 | | | | 18,454,006 | | | | 18,348,725 | | | | 19,755,820 | Operating diluted net income per common share: | $ | 0.51 | | | $ | 0.49 | | | $ | 0.47 | | | $ | 0.44 | | | $ | 0.45 | | | | | | | | | | | | | | | Tangible Common Equity/Tangible Assets(1) | | | | | | | | | | | | | | Tangible stockholders' equity(3) | $ | 229,362 | | | $ | 233,238 | | | $ | 223,246 | | | $ | 217,183 | | | $ | 209,095 | Tangible total assets(3) | $ | 3,011,481 | | | $ | 3,019,701 | | | $ | 2,845,735 | | | $ | 2,791,540 | | | $ | 2,767,945 | Tangible Common Equity/Tangible Assets | | 7.62 | % | | | 7.72 | % | | | 7.84 | % | | | 7.78 | % | | | 7.55 | % | | | | | | | | | | | | | | (1) The Company believes these non-GAAP financial measurements are key indicators of the ongoing earnings power of the Company. (2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. (3) Since the Company has no intangible assets, tangible stockholders' equity and tangible total assets are the same amounts as stockholders' equity and total assets, respectively, as calculated under GAAP.

Third Coast Bancshares, Inc. (TCBX) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.28%. A quarter ago, it was expected that this company would post earnings of $0.88 per share when it actually produced earnings of $1.08, delivering a surprise of +22.73%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Third Coast Bancshares, which belongs to the Zacks Banks - Southeast industry, posted revenues of $65.87 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.67%. This compares to year-ago revenues of $54.48 million. The company has topped consensus revenue estimates three 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. Third Coast Bancshares shares have added about 8.8% since the beginning of the year versus the S&P 500's gain of 12.7%. While Third Coast Bancshares 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 Third Coast Bancshares was favorable. 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 #2 (Buy) for the stock. So, the shares are expected to outperform 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 $0.98 on $67.84 million in revenues for the coming quarter and $3.97 on $259.25 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 28% 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. One other stock from the same industry, USCB Financial Holdings, Inc. (USCB), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 22. This company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. USCB Financial Holdings, Inc.'s revenues are expected to be $29.13 million, up 16.7% 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 Third Coast Bancshares, Inc. (TCBX) : Free Stock Analysis Report USCB Financial Holdings, Inc. (USCB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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.