In This Article:
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Deposits: Increased by $206 million to $2.1 billion, a 10.7% increase compared to Q3 2023.
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Average Loans: Increased by $267 million or 16.6% compared to Q3 2023.
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Net Income: $6.9 million, an increase of $3.1 million or 82% compared to Q3 2023.
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Earnings Per Share (EPS): $0.35 per diluted share, up from $0.19 per share in Q3 2023.
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Return on Average Assets (ROAA): 1.11% for Q3 2024, compared to 0.67% in Q3 2023.
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Return on Average Equity (ROAE): 13.38% for Q3 2024, compared to 8.19% in Q3 2023.
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Loan Yields: Increased 16 basis points from the prior quarter and 79 basis points compared to Q3 2023.
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Net Interest Margin (NIM): Improved by 9 basis points in the quarter.
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Allowance for Credit Losses: Increased by $23 million, with a provision of $837,000.
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Non-Performing Loans: Increased by $2 million, representing 0.14% of the portfolio.
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Total Expenses: $11.5 million, slightly down from the prior quarter.
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Cash Dividend: Declared $0.05 per share of Class A common stock.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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USCB Financial Holdings Inc (NASDAQ:USCB) reported another consecutive record quarter of fully diluted earnings per share, demonstrating strong strategic initiatives and operational performance.
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Deposits increased by $206 million to $2.1 billion, a 10.7% increase compared to the third quarter of 2023, supported by various deposit aggregating business verticals.
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Average loans increased by $267 million or 16.6% compared to the third quarter of 2023, with loan yields improving by 16 basis points from the prior quarter.
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Net income rose to $6.9 million or $0.35 per diluted share, marking an 82% increase compared to the third quarter of 2023.
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The company's board declared a cash dividend of $0.05 per share, reflecting a commitment to returning capital to investors while maintaining a strong balance sheet.
Negative Points
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Non-performing loans increased by $2 million, representing 0.14% of the portfolio, driven by one consumer loan relationship.
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The allowance for credit losses increased by $23 million in the third quarter, with a provision driven by a $62 million net quarterly increase in the loan portfolio.
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The bank unwound $200 million notional pay fix interest rate swaps, which will have a small negative drag in the coming quarters.
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The cost of deposits remained flat quarter-to-quarter, with September's cost of deposit at 2.57%, indicating challenges in reducing deposit costs.
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The bank is not offering CDs beyond one year, indicating a cautious approach to liability management amid anticipated Fed rate changes.