Q3 2024 USCB Financial Holdings Inc Earnings Call Transcript
Key Points
- USCB Financial Holdings Inc (USCB) reported another consecutive record quarter of fully diluted earnings per share, demonstrating strong strategic initiatives and operational performance.
- 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.
- 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.
- Net income rose to $6.9 million or $0.35 per diluted share, marking an 82% increase compared to the third quarter of 2023.
- 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.
- Non-performing loans increased by $2 million, representing 0.14% of the portfolio, driven by one consumer loan relationship.
- 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.
- The bank unwound $200 million notional pay fix interest rate swaps, which will have a small negative drag in the coming quarters.
- The cost of deposits remained flat quarter-to-quarter, with September's cost of deposit at 2.57%, indicating challenges in reducing deposit costs.
- The bank is not offering CDs beyond one year, indicating a cautious approach to liability management amid anticipated Fed rate changes.
Good day and welcome to the third quarter 2024 USCB Financial Holdings Inc earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Luis de La Aguilera, Chairman and CEO. Please go ahead.
Good morning, and thank you for joining us for USCB Financial Holdings' third quarter 2024 earnings call.
With me today reviewing our Q3 highlights is CFO, Rob Anderson; and Chief Credit Officer Bill Turner, who will provide an overview of the Bank's performance, the highlights of which commence on slide 3.
We are very pleased to report another consecutive record quarter of fully diluted earnings per share, reaffirming the soundness of our strategic initiatives and operational performance. Supported by the strength of Florida's economy, USCB continued posting strong growth in assets, deposits, diversified quality loans, and profitability. These results reflect the
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