USCB Financial Holdings, Inc. Class A (USCB) AI Stock Analysis

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USCB Financial Holdings, Inc. Class A

(NASDAQ:USCB)

79Outperform

USCB Financial Holdings scores highly due to its strong financial performance, characterized by growth in revenue and profitability, alongside a stable balance sheet. Technical indicators suggest steady momentum, while the fair valuation and attractive dividend yield further bolster the outlook. The positive sentiment from the earnings call, with strong financial guidance and confidence in future profitability, enhances the overall score.

USCB Financial Holdings, Inc. Class A (USCB) vs. S&P 500 (SPY)

Market Cap

$342.10M

Dividend Yield1.47%

Average Volume (3M)36.59K

Price to Earnings (P/E)13.7

Beta (1Y)1.06

Revenue Growth32.79%

EPS Growth48.96%

CountryUS

Employees199

SectorFinancial

Sector Strength78

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.24

Shares Outstanding20,053,024

10 Day Avg. Volume27,998

30 Day Avg. Volume36,590

Financial Highlights & Ratios

PEG Ratio0.28

Price to Book (P/B)N/A

Price to Sales (P/S)4.75

Price to Cash Flow (P/CF)-31.00

P/FCF Ratio12.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$23.50

Price Target Upside37.75% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

USCB Financial Holdings, Inc. Class A Business Overview & Revenue Model

Company DescriptionUSCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that provides various banking products and services to small-to-medium sized businesses. The company accepts checking, savings, money market, and time deposit accounts; and certificates of deposit. Its loan products include residential real estate loans; commercial real estate loans; commercial and industrial loans; foreign banks loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers treasury, commercial payments, cash management, and online banking services. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.

How the Company Makes MoneyUSCB Financial Holdings, Inc. generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and commercial loans. The company also earns non-interest income from various fees associated with banking services such as transaction fees, account maintenance fees, and fees from wealth management services. Additionally, USCB may engage in investment activities, generating income from securities and other financial instruments. Significant partnerships with other financial institutions and service providers may also contribute to its earnings, enhancing its product offerings and customer reach.

USCB Financial Holdings, Inc. Class A Financial Statement Overview

Summary

USCB Financial Holdings exhibits strong financial health with consistent revenue growth and profitability improvements. The balance sheet is stable with improving equity ratio, though rising liabilities require monitoring. Robust cash flow performance highlights operational efficiency, although fluctuations in investing and financing activities suggest some volatility.

Income Statement

Very Positive

USCB Financial Holdings has demonstrated strong revenue growth with a significant increase from 2023 to 2024. The net profit margin has improved over the years, indicating enhanced profitability. However, the absence of EBIT and EBITDA in 2024 requires attention, though past metrics show healthy margins.

Balance Sheet

Positive

The balance sheet is stable with a reasonable debt-to-equity ratio and an improving equity ratio over time. The return on equity has shown a positive trajectory, reflecting efficient management of equity. However, the increase in total liabilities in recent years could pose a risk if not managed.

Cash Flow

Very Positive

Cash flow analysis reveals robust growth in free cash flow, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is healthy, suggesting strong cash conversion. However, the significant fluctuation in investing and financing cash flows could indicate volatility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
82.68M	63.60M	68.73M	60.69M	49.69M
	Gross Profit
82.68M	108.42M	68.73M	60.69M	49.69M
	EBIT
0.00	30.76M	34.52M	27.68M	13.41M
	EBITDA
0.00	22.39M	27.77M	28.71M	14.68M
	Net Income Common Stockholders
24.67M	16.55M	20.14M	21.08M	10.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
294.24M	41.06M	54.17M	46.23M	47.73M
	Total Assets
2.58B	2.34B	2.09B	1.85B	1.50B
	Total Debt
171.45M	194.42M	60.40M	50.19M	50.51M
	Net Debt
94.42M	153.36M	6.23M	3.96M	2.78M
	Total Liabilities
2.37B	2.15B	1.90B	1.65B	1.33B
	Stockholders Equity
215.39M	191.97M	182.43M	203.90M	171.00M
Cash Flow		Free Cash Flow
33.78M	22.38M	28.86M	21.42M	12.76M
	Operating Cash Flow
34.09M	22.55M	29.54M	22.05M	13.10M
	Investing Cash Flow
-211.86M	-273.00M	-270.60M	-359.36M	-178.78M
	Financing Cash Flow
213.74M	237.35M	249.00M	335.81M	177.67M

USCB Financial Holdings, Inc. Class A Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price17.06

Price Trends

50DMA

18.32

Negative

100DMA

18.48

Negative

200DMA

16.81

Positive

Market Momentum

MACD

-0.43

Positive

RSI

42.68

Neutral

STOCH

57.11

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USCB, the sentiment is Neutral. The current price of 17.06 is below the 20-day moving average (MA) of 17.67, below the 50-day MA of 18.32, and above the 200-day MA of 16.81, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 57.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USCB.

USCB Financial Holdings, Inc. Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	79 Outperform	$342.10M	13.71	12.11%	1.47%	32.79%	48.96%
HBCP	76 Outperform	$346.10M	9.48	9.54%	2.36%	11.26%	-8.61%
BSVN	75 Outperform	$330.59M	7.42	22.26%	2.66%	1.20%	46.86%
BWB	65 Neutral	$364.82M	12.84	7.43%	―	10.11%	-18.78%
RRBI	64 Neutral	$338.27M	10.09	10.98%	0.78%	12.88%	2.03%
Sector *	63 Neutral	$12.00B	9.27	8.14%	79.61%	12.85%	-5.12%
BSRR	62 Neutral	$353.76M	9.08	11.67%	3.77%	5.69%	19.91%

* Financial Sector Average

Performance Comparison

USCB

USCB Financial Holdings, Inc. Class A

17.13

6.65

63.45%

HBCP

Home Bancorp

43.15

8.82

25.69%

BSRR

Sierra Bancorp

25.58

7.32

40.09%

BWB

Bridgewater Bancshares

12.59

0.54

4.48%

BSVN

Bank7

34.83

7.54

27.63%

RRBI

Red River Bancshares

49.51

2.10

4.43%

USCB Financial Holdings, Inc. Class A Earnings Call Summary

Earnings Call Date: Jan 23, 2025 | % Change Since: -6.16% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Positive

The earnings call highlights robust financial performance, including record earnings per share, significant growth in deposits and loans, and strong asset quality. The increase in dividends reflects confidence in future profitability. However, challenges such as nonrecurring expenses and interest rate volatility are noted. Overall, the highlights outweigh the lowlights, indicating a positive outlook.

Highlights

Record-Breaking Earnings Per Share

Earnings per share increased from $0.14 in Q4 2023 to $0.34 in Q4 2024, marking a significant 142.9% increase.

Strong Deposit and Loan Growth

Average deposits increased by $225 million or 11.8%, and average loans increased by $260 million or 15.3% compared to Q4 2023.

Profitability and Net Income Growth

Net income increased by $4.2 million or 153.7% compared to Q4 2023, with a net interest income increase of $5 million or 34.7%.

Dividend Increase

The Board approved doubling the quarterly cash dividend to $0.10 per share, indicating strong financial health and confidence.

Interest Margin Expansion

Net interest margin improved from 2.62% to 3.16% in 2024, an increase of 54 basis points over three quarters.

Strong Asset Quality

Net losses were zero for the quarter and the year, with nonperforming loans unchanged at $2.7 million, representing 0.14% of the portfolio.

Lowlights

Nonrecurring Expenses Impact

Nonrecurring expenses negatively affected earnings per share by $0.04, impacting the efficiency ratio.

Interest Rate Volatility

High interest rate volatility poses challenges, with expectations for a neutral balance sheet to manage risks.

Expense Growth Considerations

Total expenses increased, with $1 million in nonrecurring expenses and expectations for further expense growth in 2025.

Company Guidance

During the USCB Fourth Quarter 2024 earnings call, the management provided guidance indicating a strong financial outlook for 2025, supported by robust performance metrics from the past year. The bank achieved a record net income of $6.9 million or $0.34 per diluted share, marking a 153.7% increase compared to the previous year. Average deposits rose by $225 million, or 11.8%, while average loans increased by $260 million, or 15.3%, compared to Q4 2023. The net interest margin (NIM) improved by 54 basis points to 3.16% over the year, contributing to a solid return on average assets of 1.08%. The bank anticipates high single-digit to low double-digit loan growth in 2025, leveraging its deposit-focused business lines and strategic initiatives in Florida's dynamic market. Additionally, the Board approved a doubled quarterly cash dividend to $0.10 per share, reflecting confidence in the company's earnings power and commitment to shareholder value.

USCB Financial Holdings, Inc. Class A Corporate Events

Business Operations and StrategyFinancial Disclosures

USCB Financial Highlights Q4 2024 Performance and Strategy

Positive

Jan 24, 2025

USCB Financial Holdings, Inc. recently filed an investor presentation for its fourth quarter of 2024, highlighting its performance and strategic focus. The bank operates in Florida’s vibrant economy, benefiting from the state’s favorable business climate, low unemployment, and significant small business presence. The presentation reaffirms USCB’s commitment to relationship-focused banking and its strategic growth within the South Florida market, emphasizing its role in supporting local businesses and the potential implications of economic conditions on its operations.

DividendsFinancial Disclosures

USCB Financial Holdings Reports Strong Q4 2024 Results

Positive

Jan 23, 2025

On January 23, 2025, USCB Financial Holdings, Inc. reported a net income of $6.9 million or $0.34 per fully diluted share for Q4 2024, significantly higher than the $2.7 million or $0.14 per share earned in the same quarter of 2023. The company also announced a doubling of its quarterly dividend to $0.10 per share. The strong financial performance, driven by reduced deposit costs and expanded net interest margin, led to an annualized return on average assets of 1.08% and return on average equity of 12.73%. Despite higher non-interest expenses due to non-routine items, the company maintained profitability and increased its total assets to $2.6 billion. The company remains focused on driving sustainable performance and delivering shareholder value in 2025.

Dividends

USCB Financial Holdings Doubles Quarterly Dividend

Positive

Jan 21, 2025

On January 21, 2025, USCB Financial Holdings, Inc. announced an increase in its quarterly cash dividend to $0.10 per share of Class A common stock, doubling the previous dividend of $0.05. The dividend is payable on March 5, 2025, to shareholders recorded by February 14, 2025, reflecting a strategic enhancement in shareholder returns.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.