0001562762-26-000027
SEC filingUSCB Financial Holdings, Inc. reported net income of $26.1 million for fiscal year 2025, a 5.8% increase from $24.7 million in 2024. Total assets grew to $2.79 billion from $2.58 billion, driven by a $136.7 million net increase in loans held for investment. Net interest income before provision for credit losses rose 19.6% to $83.6 million, supported by higher interest income from loans ($128.2 million) and investment securities ($13.7 million). Non-interest income declined to $6.6 million from $12.7 million, primarily due to a $7.5 million loss on sale of securities. The company maintained a strong capital position with total stockholders' equity of $217.2 million and declared quarterly dividends of $0.10 per share throughout 2025.
USCB Financial Holdings, Inc. reported solid financial performance for fiscal year 2025, with net income increasing to $26.1 million from $24.7 million in 2024, representing 5.8% growth. Total interest income grew 10.9% to $145.5 million, driven by higher loan interest income of $128.2 million (up 11.2% from $115.2 million) and investment securities income of $13.7 million (up 19.5% from $11.5 million). Net interest income before provision for credit losses increased 19.6% to $83.6 million. The company's total assets expanded 8.1% to $2.79 billion, primarily due to loan portfolio growth. However, non-interest income declined 48.3% to $6.6 million, largely due to a $7.5 million loss on sale of available-for-sale securities compared to a $14,000 gain in 2024.
Interest income from loans, including fees, represented the largest revenue component at $128.2 million (88.1% of total interest income), up from $115.2 million in 2024. Investment securities contributed $13.7 million (9.4% of interest income), while interest-bearing deposits in financial institutions generated $3.6 million (2.5%). The company's loan portfolio is concentrated in commercial real estate (57.0% of total loans), residential real estate (14.1%), commercial and industrial (13.5%), correspondent banks (5.9%), and consumer/other loans (9.5%). Non-interest income consisted of service fees ($9.6 million), gain on sale of loans held for sale ($1.0 million), and other non-interest income ($3.5 million), partially offset by the $7.5 million securities loss.
Net interest margin improved as net interest income before provision for credit losses increased 19.6% to $83.6 million, while interest expense remained relatively stable at $61.9 million compared to $61.3 million in 2024. The provision for credit losses decreased to $2.3 million from $3.2 million in 2024. Operating margin (net income before income tax expense divided by total interest income plus non-interest income) was 24.7%. Non-interest expense increased 10.6% to $52.0 million, primarily due to higher salaries and employee benefits ($32.2 million, up 11.7%) and other operating expenses ($8.6 million, up 12.3%). The efficiency ratio (non-interest expense divided by net interest income plus non-interest income) was 57.7%.
Operating activities generated $42.8 million in cash, while investing activities used $245.4 million primarily for loan growth ($136.7 million net increase) and securities purchases ($139.8 million). Financing activities provided $164.0 million from deposit growth ($171.1 million) and subordinated note issuance ($39.3 million), partially offset by FHLB advance repayments ($341.5 million) and stock repurchases ($34.6 million). Total cash decreased $38.6 million to $38.5 million. The balance sheet shows total loans held for investment of $2.16 billion (net of allowance), total deposits of $2.35 billion, and stockholders' equity of $217.2 million. The allowance for credit losses was $25.5 million (1.17% of total loans).
The company operates as an emerging growth company until December 31, 2026, providing certain regulatory relief. Management's strategy focuses on organic growth and potential strategic acquisitions, facilitated by access to public capital markets. The company faces competition from various financial institutions and is subject to extensive banking regulations. Risk factors include economic conditions affecting loan portfolio performance, interest rate fluctuations, regulatory changes, and competition in the South Florida market. The company declared quarterly dividends of $0.10 per share throughout 2025 and announced a $0.125 per share dividend for March 2026. Capital ratios remain above well-capitalized requirements, with total risk-based capital at 13.67% for the bank.