Fri, May 9, 4:48 PM (35 days ago)
**USCB Financial Holdings, Inc. (USCB, Ticker: USCB)** **Q1 2025 Financial Health and Performance:** USCB reported net income of $7.7 million ($0.38 per diluted share) for Q1 2025, up 66% from Q1 2024. This growth was driven by higher interest income from loan portfolio expansion and increased fee-generating activities. Net interest income rose by 26.1% to $19.1 million, with a net interest margin of 3.10%, up from 2.62% in Q1 2024. Total assets increased by 15.1% annualized to $2.68 billion, with loans growing by 13.0% annualized to $2.04 billion. Deposits rose by 25.3% annualized to $2.31 billion. The allowance for credit losses (ACL) to total loans remained stable at 1.22%, with non-performing loans at 0.20% of total loans. The company's risk-based capital ratios exceeded regulatory requirements, with a total risk-based capital ratio of 13.72%. **Revenue and Profit Margins:** USCB's revenue growth was driven by net interest income and non-interest income. Net interest income increased due to loan portfolio growth and higher yields. Non-interest income grew by 50.8% due to increased service fees and gains on loan sales. The provision for credit losses rose due to loan growth and slight economic deterioration. **Cash Flow:** USCB's cash flow from operations was $14.6 million, with investing activities using $72.2 million, primarily for loan and investment purchases. Financing activities provided $78.5 million, mainly from deposit growth and borrowings. **Earnings Changes:** Net income increased by 66% due to higher interest income and non-interest income. The provision for credit losses rose due to loan growth and economic factors. **Quarterly Performance Discussion:** USCB's Q1 2025 performance was strong, with significant growth in net income, loans, and deposits. The company's net interest margin improved, and asset quality remained stable. However, the provision for credit losses increased due to loan growth and economic factors. **Trends and Uncertainties:** USCB's loan portfolio continues to grow, with commercial real estate as the primary focus. The company's deposit base is stable, with a mix of commercial, personal, and brokered deposits. However, USCB faces uncertainties related to interest rates, economic conditions, and regulatory changes. **Future Operations Impact:** USCB's future operations may be impacted by changes in interest rates, economic conditions, and regulatory environment. The company's growth strategy focuses on relationship-based banking and competing for new business in a competitive market. USCB may also consider acquisitions to expand its operations. **Summary:** USCB's Q1 2025 performance was strong, with significant growth in net income, loans, and deposits. The company's net interest margin improved, and asset quality remained stable. However, the provision for credit losses increased due to loan growth and economic factors. USCB faces uncertainties related to interest rates, economic conditions, and regulatory changes, which may impact its future operations. The company's growth strategy focuses on relationship-based banking and competing for new business in a competitive market. USCB may also consider acquisitions to expand its operations.