USCB USCB Financial Holdings Inc

U.S. Century Bank (the “Company”) (NASDAQ: USCB) today announced 2021 second quarter financial results for the quarter ended June 30, 2021.

“We are thrilled to have completed our initial public offering and to be trading publicly. This milestone will help support the Company’s growth strategy as part of our long-term strategic expansion plan,” said Luis de la Aguilera, President and Chief Executive Officer.

The Company reported net income of $4.1 million or $0.64 per diluted share of Class A common stock and $0.13 per diluted share of Class B common stock, for the quarter ended June 30, 2021, from net income of $1.4 million or $0.13 per diluted share of Class A common stock and $0.03 per diluted share of Class B common stock, for the quarter ended June 30, 2020.

Financial Highlights

• Completed the initial public offering (“IPO”) and issued 4,600,000 shares of Class A common stock, inclusive of the full exercise of the underwriters’ option to purchase an additional 600,000 shares. The securities were sold at a price to the public of $10.00 per share and began trading on the Nasdaq Global Market under the ticker symbol “USCB” on July 23, 2021. On July 27, 2021, the closing date of the IPO, the Company received total net proceeds of $42 million, after deducting the underwriting discount.

• Net interest income was $12.5 million for the quarter ended June 30, 2021, representing an increase of $1.6 million or 14.75% as compared to the second quarter in 2020. The increase was primarily driven by higher investment income and lower interest expense on deposits.

• Net interest margin (“NIM”) was 3.14% for the three months ended June 30, 2021, a decrease of 21 basis points from 3.35% for the immediately preceding quarter ended March 31, 2021, and a decrease of 14 basis points from 3.28% for the second quarter in 2020. The decreases in NIM were largely due to lower benchmark interest rates.

• The efficiency ratio for the three months ended June 30, 2021 was 62.00% as compared to 69.03% for the second quarter in 2020.

• Average deposits for the quarter ended June 30, 2021 increased by $88.5 million or 6.59% compared to the immediately preceding quarter ended March 31, 2021 and by $265.7 million or 22.78% compared to the second quarter of 2020.

• Average loans for the quarter ended June 30, 2021 increased by $16.7 million or 1.56% compared to the immediately preceding quarter ended March 31, 2021 and by $49.6 million or 4.78% compared to the second quarter of 2020.

• Annualized return on average assets for the quarter ended June 30, 2021 was 0.98%, compared to 0.41% for the second quarter in 2020.

• Annualized return on average stockholders’ equity for the quarter ended June 30, 2021 was 9.74%, compared to 3.55% for the second quarter in 2020.

• Since March 2020, the Company has participated in all three rounds of the Small Business Administration ("SBA") Paycheck Protection Program ("PPP"), originating $168.4 million of PPP loans through June 30, 2021. As of June 30, 2021, $82.3 million in PPP loans had been forgiven.

• On June 24, 2021, the Company purchased a yacht loan portfolio that is complementary to our business and stated strategy. The portfolio is tied to financed purchases of 24 vessels with an aggregate principal balance as of the date of purchase of $44.1 million.

• On April 26, 2021, the Company completed the repurchase of all outstanding shares of our Class E Partially Cumulative Perpetual Preferred Stock (“Class E Preferred Stock”), for an aggregate repurchase price of $7.6 million, which is equal to the aggregate liquidation preference of $7.5 million plus declared and unpaid dividends. As of the date of this press release, no shares of Class E Preferred Stock remain outstanding.

• Total risk-based capital ratio was 12.69% at June 30, 2021 compared to 14.14% for the second quarter in 2020.

• Allowance for loan losses to total loans was 1.30% at June 30, 2021 compared to 1.45% at June 30, 2020.

• Non-performing loans to total loans was less than 0.01% at June 30, 2021 compared to 0.53% for the second quarter in 2020.

• Annualized net charge offs to average loans for the quarter ended June 30, 2021 was 0.06%.

• Refer to the “Non-GAAP financial measures” Exhibits below for a reconciliation of the non-GAAP measures used.

Balance Sheet

Total assets were $1.7 billion at June 30, 2021, representing an increase of $33.6 million or 2.1% from the immediately preceding quarter ended March 31, 2021. The significant contributing factors to the overall increase included:

• Available-for-sale securities increased $54.5 million or 15.95% as excess liquidity was used to purchase investments.

• Total loans increased $41.1 million or 3.72% primarily due to the purchase of a yacht loan portfolio.

• Cash and equivalents declined $58.8 million primarily because of the purchase of investment securities and loans as mentioned previously.

Deposits totaled $1.4 billion at June 30, 2021, representing an increase of $34.5 million, or 2.5%, from the immediately preceding quarter ended March 31, 2021. The average cost of total deposits continued to decline, dropping by 8 basis points to 0.26% for the quarter ended June 30, 2021 from 0.34% for the immediately preceding quarter ended March 31, 2021, and 0.73% for the quarter ended June 30, 2020.

Asset Quality

Non-performing assets decreased by $0.7 million or 97.0% for the three months ended June 30, 2021 compared to the immediately preceding quarter ended March 31, 2021 and decreased $5.6 million or 99.6% from the second quarter ended June 30, 2020. For the three months ended June 30, 2021, non-performing assets to total assets was less than 0.01%, representing a decrease of nearly 0.04% or 97.1% from the immediately preceding quarter ended March 31, 2021.

The allowance for loan losses was $14.8 million at June 30, 2021, down from $15.0 million for the immediately preceding quarter ended March 31, 2021, and from $15.3 million for the quarter ended June 30, 2020.

Non-interest Income and Non-interest Expense

Non-interest income totaled $1.5 million for the three months ended June 30, 2021, representing an increase of approximately $0.6 million or 58.4% compared to the same period in 2020. The increase was primarily driven by higher service charges on deposits and gains on sale of loans held for sale.

Non-interest expense was $8.7 million for the three months ended June 30, 2021 compared to $8.2 million for the same period in 2020. The increase was primarily driven by higher employee headcount and professional fees.

About U.S. Century Bank

Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the state, with assets of $1.7 billion. U.S. Century is rated 5-star by BauerFinancial, the nation’s leading independent bank rating firm. Through its network of 11 branch locations and its online banking platform, U.S. Century Bank offers customers a wide range of financial products and services. U.S. Century Bank has received awards and accolades from numerous organizations for its philanthropic support and leadership, including the Beacon Council, Greater Miami Chamber of Commerce, South Florida Hispanic Chamber of Commerce and others. For more information or to find a U.S. Century branch near you, please call (305) 715-5200 or visit www.uscentury.com.

Forward-Looking Statements

Statements included in this earning release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. The words “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “continue,” “may” and “intend,” as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on results of operations and financial condition from expected developments or events, or business and growth strategies, including anticipated internal growth.

These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:

• the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
• the COVID-19 pandemic and its impact on us, our employees, customers and third-party service providers, and the ultimate extent of the impacts of the pandemic and related government stimulus programs;
• our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
• the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
• the efficiency and effectiveness of our internal control environment;
• our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
• legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the effects of forthcoming CECL implementation;
• the effects of our lack of a diversified loan portfolio and concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate;
• the concentration of ownership of our Class A common stock;
• our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
• inflation, interest rate, unemployment rate, market, and monetary fluctuations;
• increased competition and its effect on pricing of our products and services as well as our margins;
• the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
• other risks described from time to time in our filings with the FDIC.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this presentation are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors we describe in the reports we will file from time to time with the FDIC.

Non-GAAP Financial Measures

This earning release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earning release.

U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED) CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data)  

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

2021

 

2020

 

2021

 

2020

Interest income: Loans, including fees

$

11,538

$

11,974

$

23,406

 

$

23,710

Investment securities

 

1,968

 

1,218

 

3,812

 

 

2,482

Interest-bearing deposits in financial institutions

 

23

 

67

 

39

 

 

209

Total interest income

 

13,529

 

13,259

 

27,257

 

 

26,401

Interest expense: Interest-bearing deposits

 

15

 

44

 

29

 

 

90

Savings and money markets accounts

 

523

 

763

 

1,071

 

 

1,890

Time deposits

 

379

 

1,306

 

933

 

 

2,718

Federal Home Loan Bank advances

 

138

 

275

 

275

 

 

718

Total interest expense

 

1,055

 

2,388

 

2,308

 

 

5,416

Net interest income before provision for loan losses

 

12,474

 

10,871

 

24,949

 

 

20,985

Provision for (recovery of) loan losses

 

-

 

1,750

 

(160

)

 

3,250

Net interest income after provision for loan losses

 

12,474

 

9,121

 

25,109

 

 

17,735

Non-interest income: Service fees

 

903

 

581

 

1,792

 

 

1,459

Gain on sale of securities available for sale, net

 

187

 

5

 

249

 

 

423

Gain on sale of loans held for sale, net

 

23

 

-

 

987

 

 

228

Other non-interest income

 

403

 

371

 

809

 

 

758

Total non-interest income

 

1,516

 

957

 

3,837

 

 

2,868

Non-interest expense: Salaries and employee benefits

 

5,213

 

4,792

 

10,491

 

 

9,862

Occupancy

 

1,411

 

1,436

 

2,798

 

 

2,835

Regulatory assessment and fees

 

195

 

165

 

373

 

 

341

Consulting and legal fees

 

373

 

270

 

558

 

 

429

Network and information technology services

 

332

 

412

 

840

 

 

749

Other operating

 

1,150

 

1,090

 

2,291

 

 

2,175

Total non-interest expense

 

8,674

 

8,165

 

17,351

 

 

16,391

Net income before income tax expense

 

5,316

 

1,913

 

11,595

 

 

4,212

Income tax expense

 

1,263

 

469

 

2,761

 

 

1,033

Net income

 

4,053

 

1,444

 

8,834

 

 

3,179

Preferred stock dividend

 

754

 

782

 

1,535

 

 

1,563

Net income available to common stockholders

$

3,299

$

662

$

7,299

 

$

1,616

Per share information: Class A common stock (1) Basic net income per share of common stock

$

0.65

$

0.13

$

1.43

 

$

0.32

Diluted net income per share of common stock

$

0.64

$

0.13

$

1.41

 

$

0.31

Class B common stock Basic net income per share of common stock

$

0.13

$

0.03

$

0.29

 

$

0.06

Diluted net income per share of common stock

$

0.13

$

0.03

$

0.29

 

$

0.06

Weighted average shares outstanding: Class A common stock (1) Basic

 

3,889,469

 

3,887,469

 

3,889,469

 

 

3,887,469

Diluted

 

3,933,636

 

3,944,455

 

3,933,636

 

 

3,944,455

Class B common stock Basic

 

6,121,052

 

6,121,052

 

6,121,052

 

 

6,121,052

Diluted

 

6,121,052

 

6,121,052

 

6,121,052

 

 

6,121,052

  (1) On June 16, 2021, the Company effected a 1 for 5 reverse stock split of all the Class A common stock $1.00 par value. As of the effective date of June 16, 2021, each five shares of the Company's Class A common stock was combined into one fully paid share of Class A common stock. Any fractional shares resulting from this reverse stock split were rounded up to one whole share. U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED) SELECTED FINANCIAL DATA (Dollars in thousands, except per share data)   As of and for the three months ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Income Statement Data: Net interest income

$

12,474

 

$

12,475

 

$

11,499

 

$

11,113

 

$

10,871

 

Provision for (recovery of) loan losses

 

-

 

 

(160

)

 

-

 

 

-

 

 

1,750

 

Net interest income after provision for loan losses

 

12,474

 

 

12,635

 

 

11,499

 

 

11,113

 

 

9,121

 

Service fees

 

903

 

 

889

 

 

1,030

 

 

777

 

 

581

 

Gain on sale of securities available for sale, net

 

187

 

 

62

 

 

11

 

 

-

 

 

5

 

Gain (loss) on sale of loans held for sale, net

 

23

 

 

964

 

 

(1

)

 

612

 

 

-

 

Other income

 

403

 

 

406

 

 

414

 

 

386

 

 

371

 

Total non-interest income

 

1,516

 

 

2,321

 

 

1,454

 

 

1,775

 

 

957

 

Salaries and employee benefits

 

5,213

 

 

5,278

 

 

4,435

 

 

4,907

 

 

4,792

 

Occupancy

 

1,411

 

 

1,387

 

 

1,402

 

 

1,419

 

 

1,436

 

Regulatory assessment and fees

 

195

 

 

178

 

 

171

 

 

179

 

 

165

 

Consulting and legal fees

 

373

 

 

185

 

 

274

 

 

342

 

 

270

 

Network and information technology services

 

332

 

 

508

 

 

380

 

 

407

 

 

412

 

Other operating

 

1,150

 

 

1,141

 

 

1,603

 

 

1,126

 

 

1,090

 

Total non-interest expense

 

8,674

 

 

8,677

 

 

8,265

 

 

8,380

 

 

8,165

 

Net income before income tax expense

 

5,316

 

 

6,279

 

 

4,688

 

 

4,508

 

 

1,913

 

Income tax expense

 

1,263

 

 

1,498

 

 

449

 

 

1,106

 

 

469

 

Net income

 

4,053

 

 

4,781

 

 

4,239

 

 

3,402

 

 

1,444

 

Preferred stock dividend

 

754

 

 

781

 

 

782

 

$

782

 

 

782

 

Net income available to common stockholders

$

3,299

 

$

4,000

 

$

3,457

 

$

2,620

 

$

662

 

Class A common stock (1) Net income per share, basic

$

0.65

 

$

0.78

 

$

0.68

 

$

0.51

 

$

0.13

 

Net income per share, diluted

$

0.64

 

$

0.78

 

$

0.67

 

$

0.51

 

$

0.13

 

Class B common stock Net income per share, basic

$

0.13

 

$

0.16

 

$

0.14

 

$

0.10

 

$

0.03

 

Net income per share, diluted

$

0.13

 

$

0.16

 

$

0.14

 

$

0.10

 

$

0.03

 

Balance Sheet Data (at period end): Cash and cash equivalents

$

47,117

 

$

105,940

 

$

47,734

 

$

177,411

 

$

116,567

 

Securities available-for-sale

$

395,804

 

$

341,344

 

$

334,322

 

$

189,507

 

$

178,393

 

Loans held for investment (2)

$

1,145,095

 

$

1,103,981

 

$

1,038,504

 

$

1,042,106

 

$

1,054,148

 

Allowance for loan losses

$

(14,848

)

$

(15,009

)

$

(15,086

)

$

(15,207

)

$

(15,323

)

Total assets

$

1,667,005

 

$

1,633,359

 

$

1,501,742

 

$

1,491,036

 

$

1,432,126

 

Non-interest-bearing deposits

$

555,993

 

$

516,550

 

$

442,467

 

$

416,564

 

$

416,572

 

Interest-bearing deposits

$

882,783

 

$

887,681

 

$

830,935

 

$

836,058

 

$

780,275

 

Federal Home Loan Bank advances and other borrowings

$

36,000

 

$

36,000

 

$

36,000

 

$

41,000

 

$

44,000

 

Total liabilities

$

1,500,703

 

$

1,462,934

 

$

1,330,741

 

$

1,322,450

 

$

1,266,511

 

Total stockholders' equity

$

166,302

 

$

170,425

 

$

171,001

 

$

168,586

 

$

165,615

 

Capital ratios: Tier 1 leverage ratio

 

7.91

%

 

8.57

%

 

8.61

%

 

8.73

%

 

8.80

%

Common equity tier 1 RWA*

 

9.24

%

 

9.47

%

 

9.71

%

 

9.68

%

 

9.43

%

Tier 1 capital to RWA*

 

11.44

%

 

12.54

%

 

12.99

%

 

13.08

%

 

12.89

%

Total capital to RWA*

 

12.69

%

 

13.80

%

 

14.24

%

 

14.34

%

 

14.14

%

  * RWA = risk weighted assets (1) Adjusted for the 1 for 5 reverse stock split for all periods shown. (2) Loan amounts include deferred fees/costs. U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED) AVERAGE BALANCES, RATIOS, AND OTHER (Dollars in thousands)   As of and for the three months ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Average balance sheet data: Cash and cash equivalents

$

108,028

 

$

86,157

 

$

154,415

 

$

159,230

 

$

103,997

 

Securities available-for-sale

$

382,990

 

$

334,723

 

$

251,294

 

$

187,096

 

$

173,467

 

Loans held for investment

$

1,088,492

 

$

1,071,782

 

$

1,036,249

 

$

1,032,264

 

$

1,038,869

 

Total assets

$

1,660,060

 

$

1,573,881

 

$

1,522,735

 

$

1,460,732

 

$

1,404,417

 

Interest-bearing deposits

$

896,271

 

$

861,300

 

$

854,206

 

$

813,031

 

$

770,869

 

Total deposits

$

1,432,165

 

$

1,343,676

 

$

1,291,427

 

$

1,222,900

 

$

1,166,490

 

Federal Home Loan Bank advances and other borrowings

$

36,000

 

$

36,000

 

$

37,522

 

$

43,935

 

$

48,835

 

Total liabilities

$

1,493,129

 

$

1,402,305

 

$

1,353,424

 

$

1,293,905

 

$

1,240,630

 

Total stockholders' equity

$

166,931

 

$

171,576

 

$

169,311

 

$

166,827

 

$

163,787

 

Performance ratios: Return on average assets (1)

 

0.98

%

 

1.23

%

 

1.11

%

 

0.93

%

 

0.41

%

Return on average equity (1)

 

9.74

%

 

11.30

%

 

9.96

%

 

8.11

%

 

3.55

%

Net interest margin (1)

 

3.14

%

 

3.35

%

 

3.14

%

 

3.17

%

 

3.28

%

Non-interest income to average assets (1)

 

0.37

%

 

0.60

%

 

0.38

%

 

0.48

%

 

0.27

%

Efficiency ratio (2)

 

62.00

%

 

58.64

%

 

63.81

%

 

65.02

%

 

69.03

%

Loans by type (at period end):(3) Residential real estate

 

213,575

 

 

231,554

 

 

232,754

 

 

247,620

 

 

268,123

 

Commercial real estate

 

673,944

 

 

650,762

 

 

606,425

 

 

603,544

 

 

599,315

 

Commercial and industrial

 

155,440

 

 

174,546

 

 

157,330

 

 

159,882

 

 

158,735

 

Foreign banks

 

62,042

 

 

45,659

 

 

38,999

 

 

27,847

 

 

25,694

 

Consumer and other

 

43,979

 

 

5,627

 

 

5,507

 

 

6,356

 

 

6,036

 

Asset quality data: Allowance for loan losses to total loans

 

1.30

%

 

1.36

%

 

1.45

%

 

1.46

%

 

1.45

%

Allowance for loan losses to non-performing loans

 

74240

%

 

2214

%

 

956

%

 

930

%

 

273

%

Non-accrual loans less TDRs

 

20

 

 

228

 

 

303

 

 

4

 

 

2,609

 

Trouble debt restructurings

 

-

 

 

450

 

 

1,275

 

 

1,632

 

 

355

 

Loans - over 90 days past due and accruing

 

-

 

 

-

 

 

-

 

 

-

 

 

2,647

 

Total non-performing loans (4)

 

20

 

 

678

 

 

1,578

 

 

1,636

 

 

5,611

 

Non-performing loans to total loans

 

0.00

%

 

0.06

%

 

0.15

%

 

0.16

%

 

0.53

%

Non-performing assets to total assets

 

0.00

%

 

0.04

%

 

0.11

%

 

0.11

%

 

0.39

%

Net charge-offs (recovery of) loan losses to average loans (1)

 

0.06

%

 

-0.03

%

 

0.05

%

 

0.04

%

 

0.02

%

Net charge-offs (recovery of) loan losses

 

160

 

 

(83

)

 

121

 

 

116

 

 

48

 

Interest rates and yields: Loans

 

4.19

%

 

4.43

%

 

4.36

%

 

4.48

%

 

4.56

%

Investment securities

 

2.04

%

 

2.19

%

 

2.35

%

 

2.68

%

 

2.76

%

Total interest-earning assets

 

3.41

%

 

3.69

%

 

3.57

%

 

3.75

%

 

4.00

%

Deposits

 

0.26

%

 

0.34

%

 

0.44

%

 

0.59

%

 

0.73

%

Borrowings and repurchase agreements

 

1.52

%

 

1.52

%

 

1.55

%

 

1.84

%

 

2.23

%

Total interest-bearing liabilities

 

0.45

%

 

0.57

%

 

0.71

%

 

0.94

%

 

1.17

%

Other information: Full-time equivalent employees

 

183

 

 

186

 

 

179

 

 

178

 

 

170

 

  (1) Annualized. (2) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income. (3) Loan amounts exclude deferred fees/costs. (4) The amounts for total non-performing loans and total non-performing assets are the same for the periods presented since there were no impaired investments or other real estate owned (OREO) recorded. U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED) NET INTEREST INCOME (Dollars in thousands)  

Three Months Ended June 30,

2021

 

2020

Average Balance

 

Interest

 

Yield/Rate (1)

 

Average Balance

 

Interest

 

Yield/Rate (1)

Assets Interest-earning assets: Loans (2)

$

1,088,492

$

11,538

4.19

%

$

1,038,869

$

11,974

4.56

%

Investment securities

 

385,090

 

1,968

2.04

%

 

176,744

 

1,218

2.76

%

Other interest earnings assets

 

101,134

 

23

0.09

%

 

95,464

 

67

0.28

%

Total interest-earning assets

 

1,574,716

 

13,529

3.41

%

 

1,311,077

 

13,259

4.00

%

Allowance for loan losses

 

85,344

 

93,340

Total assets

$

1,660,060

$

1,404,417

Liabilities and stockholders' equity Interest-bearing liabilities: Interest-bearing demand deposits

$

52,620

 

15

0.11

%

$

43,480

 

44

0.41

%

Saving and money market deposits

 

607,752

 

523

0.35

%

 

440,505

 

763

0.69

%

Time deposits

 

235,899

 

379

0.65

%

 

286,884

 

1,306

1.83

%

Total interest-bearing deposits

 

896,271

 

917

0.41

%

 

770,869

 

2,113

1.10

%

Borrowings and repurchase agreements

 

36,000

 

138

1.52

%

 

48,835

 

275

2.23

%

Total interest-bearing liabilities

 

932,271

 

1,055

0.45

%

 

819,704

 

2,388

1.17

%

Non-interest bearing demand deposits

 

535,894

 

395,621

Other non-interest-bearing liabilities

 

24,964

 

25,305

Total liabilities

 

1,493,129

 

1,240,630

Stockholders' equity

 

166,931

 

163,787

Total liabilities and stockholders' equity

$

1,660,060

$

1,404,417

Net interest income

$

12,474

$

10,871

Net interest spread (3)

2.95

%

2.84

%

Net interest margin (4)

3.14

%

3.28

%

  (1) Annualized. (2) Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. (3) Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities. (4) Net interest margin is the ratio of net interest income to total interest-earning assets. U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED) NON-GAAP FINANCIAL MEASURES (Dollars in thousands)   As of and for the three months ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 PTPP Income: Net Income

$

4,053

 

$

4,781

 

$

4,239

 

$

3,402

 

$

1,444

 

Plus: Provision for income taxes

 

1,263

 

 

1,498

 

 

449

 

 

1,106

 

 

469

 

Plus: Provision for (recovery of) loan losses

 

-

 

 

(160

)

 

-

 

 

-

 

 

1,750

 

PTPP income

$

5,316

 

$

6,119

 

$

4,688

 

$

4,508

 

$

3,663

 

  PTPP Return on Average Assets: PTPP income

$

5,316

 

$

6,119

 

$

4,688

 

$

4,508

 

$

3,663

 

Average assets

$

1,660,060

 

$

1,573,881

 

$

1,522,735

 

$

1,460,732

 

$

1,404,417

 

PTPP return on average assets (1)

 

1.28

%

 

1.58

%

 

1.22

%

 

1.23

%

 

1.05

%

  Operating Net Income: Net income

$

4,053

 

$

4,781

 

$

4,239

 

$

3,402

 

$

1,444

 

Less: Net gains on sale of securities

 

187

 

 

62

 

 

11

 

 

-

 

 

5

 

Less: Tax effect on sale of securities

 

(46

)

 

(15

)

 

(3

)

 

-

 

 

(1

)

Operating net income

$

3,912

 

$

4,734

 

$

4,231

 

$

3,402

 

$

1,440

 

  Operating PTPP Income: PTPP income

$

5,316

 

$

6,119

 

$

4,688

 

$

4,508

 

$

3,663

 

Less: Net gains on sale of securities

 

187

 

 

62

 

 

11

 

 

-

 

 

5

 

Operating PTPP Income

$

5,129

 

$

6,057

 

$

4,677

 

$

4,508

 

$

3,658

 

  Operating PTPP Return on Average Assets: Operating PTPP income

$

5,129

 

$

6,057

 

$

4,677

 

$

4,508

 

$

3,658

 

Average assets

$

1,660,060

 

$

1,573,881

 

$

1,522,735

 

$

1,460,732

 

$

1,404,417

 

Operating PTPP Return on average assets (1)

 

1.24

%

 

1.56

%

 

1.22

%

 

1.23

%

 

1.05

%

  Operating Return on Average Asset: Operating net income

$

3,912

 

$

4,734

 

$

4,231

 

$

3,402

 

$

1,440

 

Average assets

$

1,660,060

 

$

1,573,881

 

$

1,522,735

 

$

1,460,732

 

$

1,404,417

 

Operating return on average assets (1)

 

0.95

%

 

1.22

%

 

1.11

%

 

0.93

%

 

0.41

%

  (1) Annualized.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005530/en/

Investor Relations InvestorRelations@uscentury.com

Media Relations Martha Guerra-Kattou MGuerra@uscentury.com (305) 715-5141