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1. Company Snapshot

1.a. Company Description

USCB Financial Holdings, Inc.operates as the bank holding company for U.S. Century Bank that provides various banking products and services to small-to-medium sized businesses.The company accepts checking, savings, money market, and time deposit accounts; and certificates of deposit.


Its loan products include residential real estate loans; commercial real estate loans; commercial and industrial loans; foreign banks loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans.The company also offers treasury, commercial payments, cash management, and online banking services.USCB Financial Holdings, Inc.


was founded in 2002 and is headquartered in Miami, Florida.

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1.b. Last Insights on USCB

The recent 3-month performance of USCB Financial Holdings, Inc. was negatively impacted by the lack of earnings surprise, as the company's Q1 2025 earnings matched the Zacks Consensus Estimate. Despite a 65% increase in fully diluted EPS, the absence of a beat may indicate a plateau in growth. Additionally, the company's dividend declaration, while positive for shareholders, may not have a significant impact on the stock's short-term performance.

1.c. Company Highlights

2. USCB Financial Holdings' Q3 2025 Earnings: A Strong Performance

USCB Financial Holdings reported a net income of $8.9 million or $0.45 per diluted share, beating analyst estimates of $0.42. The bank's return on average assets was 1.27%, and return on average equity improved to 15.74%. The efficiency ratio strengthened to 52.28%, indicating effective cost management. The bank's earnings per share (EPS) growth was driven by a 10.5% year-over-year increase in total assets, reaching $2.8 billion, and a 15.5% year-over-year growth in total deposits, ending the quarter at $2.5 billion.

Publication Date: Nov -29

📋 Highlights
  • Net Income Growth: Q3 2025 net income of $8.9M ($0.45/share) rose 29% YoY, driven by improved ROAA (1.27%) and ROAE (15.74%).
  • Deposit and Asset Expansion: Total deposits hit $2.5B (+15.5% YoY), while assets grew 10.5% to $2.8B, fueled by balance sheet growth and disciplined pricing.
  • Efficiency and Capital Strength: Efficiency ratio improved to 52.28%, and $40M subordinated debt issuance funded share repurchases (2M shares at $17.19/share), boosting tangible book value to $11.55 (+6% YoY).
  • Loan and Credit Performance: Loans rose to $2.1B (+10.3% YoY) with nonperforming loans at 0.06% of total loans, and a $25M allowance for credit losses covering 1.17% of the portfolio.
  • Securities Yield Optimization: Portfolio yield increased to 3.03%, driven by $76M in 6% yield bonds, enhancing returns amid strategic rate environment adjustments.

Asset Quality and Credit Performance

The bank's credit performance continued to be exceptionally strong, with nonperforming loans declining to 0.06% of total loans. The allowance for credit losses was at $25 million, adequate at 1.17% of the portfolio. William Turner, Chief Credit Officer, noted that the bank's asset quality remains strong, with a well-covered allowance for credit losses.

Loan and Deposit Growth

Loans held for investment grew to $2.1 billion, an increase of $199 million or 10.3% from the prior year. Deposits increased by $166 million or nearly 29% compared to the prior quarter and are up $380 million or 18% year-over-year. The bank's diversified deposit-focused business verticals accounted for $672 million or 27% of total deposits.

Valuation and Outlook

Given the bank's strong performance, its current Price-to-Tangible Book Value (P/TBV) ratio is around 1.3, slightly below its peers. The Dividend Yield is 2.25%, providing a relatively stable source of return. Luis de la Aguilera noted that the bank's results were driven by the strength of Florida's economy, positioning it exceptionally well within this expanding marketplace. Analysts estimate next year's revenue growth at 13.5%, indicating a positive outlook for the bank.

Interest Margin and Securities Portfolio

The interest margin came back to 3.14% in August and is expected to be around 3.27% for Q4. The bank's securities portfolio stood at $480 million at quarter-end, with 67% classified as available for sale and 33% as held to maturity. The portfolio yield improved to 3.03%, driven by the bank's net purchase of $76 million in bonds carrying a yield of 6% and an average duration of 4 years.

3. NewsRoom

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USCB Financial Holdings, Inc. (USCB) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

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Compared to Estimates, USCB Financial (USCB) Q3 Earnings: A Look at Key Metrics

Oct -23

Source: zacks.com

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USCB Financial Holdings, Inc. (USCB) Q3 Earnings Top Estimates

Oct -23

Source: zacks.com

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USCB Financial Holdings, Inc. Declares Quarterly Cash Dividend On Common Stock

Oct -20

Source: globenewswire.com

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USCB Financial Holdings, Inc. (USCB) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Oct -16

Source: zacks.com

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USCB Financial Holdings, Inc. to Announce Third Quarter 2025 Results

Oct -06

Source: globenewswire.com

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All You Need to Know About USCB Financial (USCB) Rating Upgrade to Strong Buy

Aug -27

Source: zacks.com

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Best Income Stocks to Buy for August 7th

Aug -07

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Banking and Related Activities

Expected Growth: 4.77%

USCB Financial Holdings, Inc.'s 4.77% growth in Banking and Related Activities is driven by increasing loan demand, expansion of digital banking channels, and strategic acquisitions. Additionally, a favorable interest rate environment and cost savings initiatives have contributed to the growth. Furthermore, the company's focus on commercial and industrial lending, as well as its strong presence in the Southeastern US, have also supported the segment's growth.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Provides investment and wealth management services, including financial planning, investment management, and trust services.

Mortgage Banking

Offers mortgage lending services, including residential and commercial mortgage loans.

Treasury Management

Provides cash management and treasury services to businesses, including account management and payment processing.

Capital Markets

Provides investment banking and capital markets services, including debt and equity underwriting and advisory services.

8. USCB Financial Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for USCB Financial Holdings, Inc. is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers for USCB Financial Holdings, Inc. is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for USCB Financial Holdings, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for USCB Financial Holdings, Inc. is high due to the relatively low barriers to entry and the attractiveness of the financial services industry.

Intensity Of Rivalry

The intensity of rivalry for USCB Financial Holdings, Inc. is high due to the presence of multiple competitors and the high level of competition in the financial services industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.80%
Debt Cost 5.69%
Equity Weight 51.20%
Equity Cost 5.69%
WACC 5.69%
Leverage 95.33%

11. Quality Control: USCB Financial Holdings, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
USCB Financial Holdings

A-Score: 5.9/10

Value: 6.3

Growth: 5.6

Quality: 7.0

Yield: 2.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Pioneer Bancorp

A-Score: 5.7/10

Value: 5.5

Growth: 4.3

Quality: 6.9

Yield: 0.0

Momentum: 8.5

Volatility: 9.3

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PB Bankshares

A-Score: 5.6/10

Value: 4.6

Growth: 7.7

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

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Riverview Bancorp

A-Score: 5.5/10

Value: 5.9

Growth: 3.6

Quality: 3.8

Yield: 5.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Texas Community Bancshares

A-Score: 5.2/10

Value: 3.7

Growth: 4.6

Quality: 4.5

Yield: 1.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Amerant Bancorp

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.4

Yield: 3.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.26$

Current Price

18.26$

Potential

-0.00%

Expected Cash-Flows