Overview

USCB Financial Holdings is a community bank holding company headquartered in South Florida. In the first quarter of 2024, the company reported net income of $4.6 million, down from $5.8 million in the first quarter of 2023.

Revenue

• Net interest income was $15.2 million, down 5% from $16.0 million a year earlier. Lower net interest income was driven by higher interest expense on deposits and borrowings.

• Non-interest income rose 19% to $2.5 million, helped by growth in service fees from a larger deposit base.

Expenses

• Non-interest expense increased 10% to $11.2 million, largely due to higher regulatory fees, legal expenses, and other operating costs.

Loans and Credit Quality

• Total loans grew 15% year-over-year to $1.8 billion, led by growth in residential real estate lending.

• Credit quality remains strong with non-performing loans making up just 0.03% of total loans. The allowance for credit losses was stable at 1.18% of total loans.

Funding and Capital

• Total deposits were up 15% to $2.1 billion. The company has a granular deposit base made up largely of business and consumer accounts.

• The company remains well capitalized, with a total risk-based capital ratio of 12.98% at quarter-end.

Outlook

USCB Financial Holdings delivered loan growth in the first quarter but saw profitability impacted by margin compression from higher funding costs. Credit quality and capital levels remain areas of strength. The company’s focus going forward is continuing to leverage its relationship-based community banking model to drive further growth.

Financial Metrics