USCB Financial 8K Results of Operations and Financial Condition | USCB 27 Oct 22

Exhibit 99.1

EARNINGS RELEASE

USCB Financial Holdings, Inc. Reports ROAA of 1.09% and ROAE of

11.90% for 3Q2022

MIAMI – October 27, 2022 – USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB)

, the holding company for U.S.

Century

Bank

(the

“Bank”),

reported

net

income

$5.6

million

$0.28

per

diluted

Class

for

the

three

months

ended

September 30, 2022, compared

with net income of

$6.6 million or $5.11

loss and $1.02 loss per

diluted share for

Class A and Class

common stock, respectively,

for the same period in 2021. On December 21, 2021, the Company agreed to exchange

all the outstanding

shares of Class B common stock for Class A common

stock at a ratio of 1 share of Class A common

stock for each 5 shares of Class B

common stock. As of December 31, 2021, the Company’s

only class of securities issued and outstanding was Class A common stock.

“We are pleased to report

another quarter of

strong financial performance

during the third

quarter of 2022.

Our loan and

deposit activities

remain strong, with total

assets and loans growing

16.1% and 21.7%, respectively,

from September 30, 2021.

Even with the changing

economic

outlook

and all

the uncertainty,

our

ability to

attract and

retain clients

continues to

fuel outsized

growth.”

said Luis

de la

Aguilera, President and Chief Executive Officer.

“On

September

28,

2022,

Hurricane

Ian

made

landfall

Florida

category

hurricane

affecting

some

areas

the

state

with

significant

flooding,

wind

damage

and

power

outages.

The

Company

has

assessed

the

impact

the

hurricane

our

borrowers,

including the value of collateral underlying our loans and the financial condition of our borrowers impacted

by the storm. Management

visited the

3 counties

most impacted

by the storm

(Lee, Charlotte,

and Collier

counties) and

observed negligible

to no damage

to our

clients’ properties.

We had 9 yachts

in the path of the storm and are happy to report

that all owners of the vessels reported no damage.

Additionally, we have

received no requests for loan modifications.”

Unless otherwise stated, all percentage comparisons

in the bullet points below are calculated

for the quarter ended September 30, 2022

compared to the quarter ended September 30, 2021 and annualized

where appropriate.

Profitability

•

Annualized return on average assets for the quarter

ended September 30, 2022 was 1.09% compared to 1.50

for the third quarter

of 2021.

•

Annualized return on average stockholders’ equity for the quarter ended September

30, 2022 was 11.90% compared to 13.41% for

the third quarter of 2021.

•

The efficiency ratio for the quarter ended September 30,

2022 was 54.58% compared to 50.92% for the third quarter of 2021.

•

Net interest margin increased to 3.47% for the quarter ended September

30, 2022 compared to 3.19% for the third quarter of 2021.

•

Net interest income

before provision for

credit losses was

$16.8 million for

the quarter ended

September 30, 2022, an

increase of

$3.3 million or 24.5% compared to the third quarter of 2021.

Balance Sheet

•

Total assets were $2.0 billion

at September 30, 2022,

representing an increase

of $282.4 million or

16.1%

from September 30, 2021.

•

Total loans were $1.4 billion at September 30, 2022, representing

an increase of $255.1 million

or 21.7% from September 30,

2021.

•

Total

deposits were

$1.8

billion at

September 30, 2022,

representing an

increase of

$312.1 million or

21.0% from

September 30,

2021.

•

Total

stockholders’

equity

was

$177.4 million

September 30,

2022,

representing

decrease

$24.5

million

12.1%

from

September 30, 2021.

•

Total

stockholders’

equity

includes

unrealized

security

losses

$45.2

million

September 30,

2022

compared

unrealized

security gains of $1.2 million at September 30, 2021.

•

The Company

classified $74.4

million

of securities

to held-to-maturity

(HTM)

during the

quarter ended

September 30,

2022

protect tangible book value in a rising rate environment.

Asset Quality

•

The

allowance

for

credit

losses

increased

$1.7

million

$16.6 million

September 30,

2022

from

$14.9

million

September 30, 2021.

•

The allowance for credit losses represented 1.16% of total loans at September 30, 2022 compared to 1.27% at September 30, 2021.

•

Non-performing loans to total loans was 0.00% at September 30,

2022 and 2021.

Non-interest Income and Non-interest Expense

•

Non-interest

income was

$1.8

million

for

the

three

months

ended September 30,

2022,

decrease

$2.4

million

or 57.6%

compared to the same period in 2021.

•

Non-interest

expense

was

$10.1 million

for

the

three

months

ended

September 30,

2022,

increase

$1.1

million

12.5%

compared to the same period in 2021.

Capital

•

As of September 30, 2022,

total risk-based capital ratios for the Company and the Bank were 13.65% and 13.58%,

respectively.

•

Tangible book value per common share

of $8.87 was

negatively affected by $2.26

due to unrealized security

losses at September 30,

2022.

At September 30, 2021, tangible book value of $10.10 was positively affected

by $0.06 due to unrealized security gains.

Conference Call and Webcast

The Company will

host a conference

call on Friday,

October 28, 2022,

at 9:00 a.m. Eastern Time

to discuss the Company’s

unaudited

financial results

for the quarter

ended September 30, 2022.

access the conference

call, dial (866)

652-5200 (U.S. toll-free)

and ask

to join the USCB Financial Holdings Call.

Additionally,

interested

parties can

listen to

a live

webcast

of the

call in

the “Investor

Relations” section

of the

Company’s

website

at www.uscentury.com

An archived version of the webcast will be available in the same location shortly after

the live call has ended.

About USCB Financial Holdings, Inc.

USCB Financial Holdings, Inc.

is the bank holding company for

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 of Florida. U.S.

Century Bank

is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range

financial

products

and

services

and

supports

numerous

community

organizations,

including

the

Greater

Miami

Chamber

Commerce, the

South Florida Hispanic

Chamber of Commerce,

and ChamberSouth. For

more information or

to find a banking

center

near you, please call (305) 715-5200 or visit www.uscentury.com.

Forward-Looking Statements

This earnings

release may contain

statements that are

not historical in

nature and 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,”

and

“intend,”

well

other

similar

words

and

expressions

the

future,

are

intended

identify

forward-looking

statements.

These

forward-looking

statements

include

statements

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 continuation of the COVID-19 pandemic and its impact on us, our employees, customers and third-party service providers, and

the ultimate extent of the impact 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

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 the

forthcoming implementation of the Current Expected Credit Losses (“CECL”)

standard;

•

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;

•

fluctuations in the price 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 the pricing of our products

and services as well as our margin;

•

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 in this earnings release and other filings we make with the

Securities and Exchange Commission (“SEC”).

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

earnings release

are made

only as

of the

date hereof,

and we

undertake no

obligation

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 described in the reports the Company filed or will file with the SEC and, for periods prior to the completion of the bank holding

company reorganization in December 2021, the Bank

filed with the FDIC.

Non-GAAP Financial Measures

This earnings

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

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

addition

to,

and

not

alternative

substitute

for,

measures

determined

accordance

with

GAAP,

and

are

not

necessarily

comparable

to non-GAAP measures that

may be presented

by other companies.

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

the exhibits

to this earnings release.

You

should assume that all numbers are unaudited unless otherwise noted.

Contacts:

Investor Relations

InvestorRelations@uscentury.com

Media Relations

Martha Guerra-Kattou

MGuerra@uscentury.com

USCB FINANCIAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS

OF INCOME (UNAUDITED)

(Dollars in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Interest income:

Loans, including fees

15,954

12,538

42,989

35,944

Investment securities

2,201

1,858

7,040

5,670

Interest-bearing deposits in financial institutions

322

474

Total interest income

18,477

14,434

50,503

41,691

Interest expense:

Interest-bearing checking

Savings and money market accounts

1,141

501

2,307

1,572

Time deposits

363

306

893

1,239

FHLB advances and other borrowings

180

140

456

415

Total interest expense

1,703

963

3,708

3,271

Net interest income before provision for credit losses

16,774

13,471

46,795

38,420

Provision for credit losses

910

1,615

(160)

Net interest income after provision for credit losses

15,864

13,471

45,180

38,580

Non-interest income:

Service fees

934

856

2,917

2,648

Gain (loss) on sale of securities available for sale, net

(558)

(70)

(540)

179

Gain on sale of loans held for sale, net

330

532

686

1,519

Loan settlement

2,500

161

2,500

Other non-interest income

1,083

399

2,127

1,208

Total non-interest income

1,789

4,217

5,351

8,054

Non-interest expense:

Salaries and employee benefits

6,075

5,313

17,863

15,804

Occupancy

1,281

1,192

3,802

3,990

Regulatory assessments and fees

269

317

708

690

Consulting and legal fees

604

357

1,519

915

Network and information technology services

488

358

1,323

1,198

Other operating expense

1,415

1,470

4,080

3,761

Total non-interest expense

10,132

9,007

29,295

26,358

Net income before income tax expense

7,521

8,681

21,236

20,276

Income tax expense

1,963

2,088

5,529

4,849

Net income

5,558

6,593

15,707

15,427

Preferred stock dividend

542

2,077

Exchange and redemption of preferred shares

89,585

Net income available to common stockholders

5,558

(83,534)

15,707

(76,235)

Allocation of net income (loss) per common stock class:

(1)

Class A

5,558

(77,278)

15,707

(65,747)

Class B

(6,256)

(10,488)

Per share information:

(1)

Class A common stock

(2)

Net income (loss) per share, basic

0.28

(5.11)

0.79

(8.57)

Net income (loss) per share, diluted

0.28

(5.11)

0.78

(8.57)

Class B common stock

Net loss per share, basic

(1.02)

(1.71)

Net loss per share, diluted

(1.02)

(1.71)

Weighted average shares outstanding:

Class A common stock

(2)

Basic

20,000,753

15,121,460

19,998,841

7,674,609

Diluted

20,148,208

15,121,460

20,178,089

7,674,609

Class B common stock

Basic

6,121,052

Diluted

6,121,052

(1)

For the three and nine months ended September

30, 2021, the allocation of net income available to

common stockholders was based on the weighted average shares

outstanding per common share class to the total weighted

average shares outstanding during the period. The income allocation

is calculated using the weighted average

shares outstanding of Class B common stock on an as-converted

basis (20% per share equivalent to Class A common

stock).

(2)

For the nine months ended September 30, 2021, the

common stock outstanding, weighted average shares and

net income per share for the Class A common stock

have been adjusted to reflect the 1 for 5 reverse stock split

that occurred in June 2021.

USCB FINANCIAL HOLDINGS, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands, except per share data)

As of or For the Three Months Ended

9/30/2022

6/30/2022

3/31/2022

12/31/2021

9/30/2021

Income statement data:

Net interest income

16,774

15,642

14,379

14,076

13,471

Provision for credit losses

910

705

Net interest income after provision for credit losses

15,864

14,937

14,379

14,076

13,471

Service fees

934

1,083

900

961

856

Gain (loss) on sale of securities available for sale, net

(558)

(3)

(70)

Gain on sale of loans held for sale, net

330

334

107

532

Gain on sale of other assets

983

Loan settlement

161

2,500

Other income

1,083

515

529

558

399

Total non-interest income

1,789

1,617

1,945

2,644

4,217

Salaries and employee benefits

6,075

5,913

5,875

5,634

5,313

Occupancy

1,281

1,251

1,270

1,267

1,192

Regulatory assessments and fees

269

226

213

317

Consulting and legal fees

604

398

517

539

357

Network and information technology services

488

448

387

268

358

Other operating expense

1,415

1,315

1,350

1,518

1,470

Total non-interest expense

10,132

9,551

9,612

9,319

9,007

Net income before income tax expense

7,521

7,003

6,712

7,401

8,681

Income tax expense

1,963

1,708

1,858

1,751

2,088

Net income

5,558

5,295

4,854

5,650

6,593

Preferred stock dividend

542

Exchange and redemption of preferred shares

89,585

Net income (loss) available to common stockholders

5,558

5,295

4,854

5,650

(83,534)

Allocation of net income (loss) per common stock class:

(1)

Class A

5,558

5,295

4,854

5,650

(77,278)

Class B

(6,256)

Per share information:

Class

A common stock

Net income (loss) per share, basic

0.28

0.26

0.24

0.30

(5.11)

Net income (loss) per share, diluted

0.28

0.26

0.24

0.30

(5.11)

Class B common stock

Net loss per share, basic

(1.02)

Net loss per share, diluted

(1.02)

Balance sheet data (at period-end):

Cash and cash equivalents

73,326

83,272

94,113

46,228

69,597

Securities available-for-sale

248,571

339,464

392,214

401,542

328,171

Securities held-to-maturity

178,865

116,671

122,361

122,658

99,866

Total securities

427,436

456,135

514,575

524,200

428,037

Loans held for investment

(2)

1,431,513

1,372,733

1,258,388

1,190,081

1,176,412

Allowance for credit losses

(16,604)

(15,786)

(15,074)

(15,057)

(14,900)

Total assets

2,037,453

2,016,086

1,967,252

1,853,939

1,755,011

Non-interest-bearing deposits

662,808

653,708

656,622

605,425

570,091

Interest-bearing deposits

1,133,834

1,085,012

1,056,672

984,954

914,498

Total deposits

1,796,642

1,738,720

1,713,294

1,590,379

1,484,589

FHLB advances and other borrowings

26,000

66,000

36,000

Total liabilities

1,860,036

1,836,018

1,775,213

1,650,042

1,553,093

Total stockholders' equity

177,417

180,068

192,039

203,897

201,918

Capital ratios:

(3)

Leverage ratio

9.48%

9.43%

9.47%

9.55%

9.69%

Common equity tier 1 capital

12.56%

12.65%

13.35%

13.70%

13.85%

Tier 1 risk-based capital

12.56%

12.65%

13.35%

13.70%

13.85%

Total risk-based capital

13.65%

13.74%

14.49%

14.92%

15.10%

(1)

The allocation of net income (loss) available to common

stockholders was based on the weighted average

shares outstanding per common share class to the total

weighted average shares outstanding during each period. The

income (loss) allocation is calculated using the weighted average

shares outstanding of Class B common

stock on an as-converted basis (20% per share equivalent to

Class A common stock).

(2)

Loan amounts include deferred fees/costs.

(3)

The Company was formed during the quarter ended December

31, 2021. As such, the capital ratios for Q3 2022, Q2

2022, Q1 2022 and Q4 2021 are for the

Company and for Q3 2021 are for the Bank. The Company, as a small bank holding

company, is not subject to regulatory capital requirements.

USCB FINANCIAL HOLDINGS, INC.

AVERAGE BALANCES, RATIOS, AND OTHER DATA

(UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

9/30/2022

6/30/2022

3/31/2022

12/31/2021

9/30/2021

Average balance sheet data:

Cash and cash equivalents

77,887

80,254

99,911

87,819

116,622

Securities available-for-sale

331,206

370,933

385,748

374,589

346,407

Securities held-to-maturity

116,733

120,130

122,381

114,108

51,238

Total securities

447,939

491,063

508,129

488,697

397,645

Loans held for investment

(1)

1,398,761

1,296,476

1,211,432

1,158,755

1,144,275

Total assets

2,026,791

1,968,381

1,913,484

1,828,037

1,741,423

Interest-bearing deposits

1,107,129

1,071,709

1,023,844

958,241

912,330

Non-interest-bearing deposits

655,853

644,975

626,400

603,735

564,928

Total deposits

1,762,982

1,716,684

1,650,244

1,561,976

1,477,258

FHLB advances and other borrowings

43,935

36,330

36,011

36,000

Total liabilities

1,841,503

1,781,784

1,711,624

1,625,675

1,546,414

Total stockholders' equity

185,288

186,597

201,860

202,362

195,009

Performance ratios:

Return on average assets

(2)

1.09%

1.08%

1.03%

1.23%

1.50%

Return on average equity

(2)

11.90%

11.38%

9.75%

11.08%

13.41%

Net interest margin

(2)

3.47%

3.37%

3.22%

3.19%

Non-interest income to average assets

(2)

0.35%

0.33%

0.41%

0.57%

0.96%

Efficiency ratio

(3)

54.58%

55.34%

58.88%

55.74%

50.92%

Loans by type (at period end):

(4)

Residential real estate

186,551

203,662

204,317

201,359

201,124

Commercial real estate

928,531

843,445

782,072

704,988

693,469

Commercial and industrial

121,145

131,271

134,832

146,592

137,486

Foreign banks

94,450

84,770

63,985

59,491

58,839

Consumer and other

100,845

109,250

73,765

79,229

87,515

Asset quality data:

Allowance for credit losses to total loans

1.16%

1.15%

1.20%

1.27%

Allowance for credit losses to non-performing loans

- %

1,265%

82,778%

Non-accrual loans less non-accrual TDRs

1,190

Non-accrual TDRs

Loans over 90 days past due and accruing

Total non-performing loans

(5)

1,190

Non-performing loans to total loans

- %

0.10%

0.00%

Non-performing assets to total assets

- %

0.06%

0.00%

Net charge-offs (recoveries of) to average loans

(2)

0.03%

(0.00)%

(0.01)%

(0.05)%

(0.02)%

Net charge-offs (recovery of) credit losses

(7)

(17)

(157)

(51)

Interest rates and yields:

(2)

Loans

4.53%

4.35%

4.32%

4.29%

Investment securities

1.94%

2.04%

1.85%

1.81%

1.86%

Total interest-earning assets

3.82%

3.60%

3.43%

3.41%

3.43%

Deposits

0.34%

0.21%

0.20%

0.21%

0.22%

FHLB advances and other borrowings

1.63%

1.53%

1.54%

1.51%

1.52%

Total interest-bearing liabilities

0.59%

0.38%

0.37%

0.38%

0.40%

Other information:

Full-time equivalent employees

191

192

190

187

184

(1)

Loan amounts include deferred fees/costs.

(2)

Annualized.

(3)

Efficiency ratio is defined as total non-interest expense divided

by sum of net interest income and total non-interest

income.

(4)

Loan amounts exclude deferred fees/costs.

(5)

The amounts for total non-performing loans and total non-performing

assets are the same for the dates presented since there were

no impaired investments or other

real estate owned (OREO) recorded.

USCB FINANCIAL HOLDINGS, INC.

NET INTEREST MARGIN (UNAUDITED)

(Dollars in thousands)

Three Months Ended September 30,

2022

2021

Average

Balance

Interest

Yield/Rate

(1)

Average

Balance

Interest

Yield/Rate

(1)

Assets

Interest-earning assets:

Loans

(2)

1,398,761

15,954

4.53%

1,144,275

12,538

4.29%

Investment securities

(3)

450,514

2,201

1.94%

399,745

1,858

1.86%

Other interest-earnings assets

70,540

322

1.81%

109,639

0.14%

Total interest-earning assets

1,919,815

18,477

3.82%

1,653,659

14,434

3.43%

Non-interest-earning assets

106,976

87,764

Total assets

2,026,791

1,741,423

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-bearing checking

66,585

0.11%

55,621

0.11%

Saving and money market deposits

823,521

1,141

0.55%

627,654

501

0.32%

Time deposits

217,023

363

0.66%

229,055

306

0.53%

Total interest-bearing deposits

1,107,129

1,523

0.55%

912,330

823

0.36%

FHLB advances and other borrowings

43,935

180

1.63%

36,000

140

1.52%

Total interest-bearing liabilities

1,151,064

1,703

0.59%

948,330

963

0.40%

Non-interest-bearing demand deposits

655,853

564,928

Other non-interest-bearing liabilities

34,586

33,156

Total

liabilities

1,841,503

1,546,414

Stockholders' equity

185,288

195,009

Total liabilities and stockholders' equity

2,026,791

1,741,423

Net interest income

16,774

13,471

Net interest spread

(4)

3.23%

3.03%

Net interest margin

(5)

3.47%

3.19%

(1)

Annualized.

(2)

Average loan balances include non-accrual loans. Interest income on loans includes accretion

of deferred loan fees, net of deferred loan costs.

(3)

At fair value except for securities held to maturity. This amount includes FHLB

stock.

(4)

Net interest spread is the average yield on total interest-earning

assets minus the average rate on total interest-bearing liabilities.

(5)

Net interest margin is the ratio of net interest income to total

interest-earning assets.

USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

9/30/2022

6/30/2022

3/31/2022

12/31/2021

9/30/2021

Pre-tax pre-provision ("PTPP") income:

Net income

5,558

5,295

4,854

5,650

6,593

Plus: Provision for income taxes

1,963

1,708

1,858

1,751

2,088

Plus: Provision for credit losses

910

705

PTPP income

8,431

7,708

6,712

7,401

8,681

PTPP return on average assets:

PTPP income

8,431

7,708

6,712

7,401

8,681

Average assets

2,026,791

1,968,381

1,913,484

1,828,037

1,741,423

PTPP return on average assets

(1)

1.65%

1.57%

1.42%

1.61%

1.98%

Operating net income:

Net income

5,558

5,295

4,854

5,650

6,593

Less: Net gains (losses) on sale of securities

(558)

(3)

(70)

Less: Tax effect on sale of securities

141

(5)

(9)

Operating net income

5,975

5,297

4,838

5,624

6,646

Operating PTPP income:

PTPP income

8,431

7,708

6,712

7,401

8,681

Less: Net gains (losses) on sale of securities

(558)

(3)

(70)

Operating PTPP income

8,989

7,711

6,691

7,366

8,751

Operating PTPP return on average assets:

Operating PTPP income

8,989

7,711

6,691

7,366

8,751

Average assets

2,026,791

1,968,381

1,913,484

1,828,037

1,741,423

Operating PTPP return on average assets

(1)

1.76%

1.57%

1.42%

1.60%

1.99%

Operating return on average assets:

Operating net income

5,975

5,297

4,838

5,624

6,646

Average assets

2,026,791

1,968,381

1,913,484

1,828,037

1,741,423

Operating return on average assets

(1)

1.17%

1.08%

1.03%

1.22%

1.51%

(1)

Annualized.

USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands, except per share data)

As of or For the Three Months Ended

9/30/2022

6/30/2022

3/31/2022

12/31/2021

9/30/2021

Tangible book value per common share (at period-end):

(1)

Total stockholders' equity

177,417

180,068

192,039

203,897

201,918

Less: Intangible assets

Tangible stockholders' equity

177,417

180,068

192,039

203,897

201,918

Total shares issued and outstanding (at period-end):

(2)

Class A common shares

20,000,753

19,991,753

18,767,541

Class B common shares

1,224,212

Total common shares issued and outstanding

20,000,753

19,991,753

Tangible book value per common share

(3)

8.87

9.00

9.60

10.20

10.10

Operating net income available to common stockholders:

(1)

Net income

5,558

5,295

4,854

5,650

6,593

Less: Preferred dividends

542

Less: Exchange and redemption of preferred shares

(2)

89,585

Net income (loss) available to common stockholders

5,558

5,295

4,854

5,650

(83,534)

Add back: Exchange and redemption of preferred shares

89,585

Operating net income avail. to common stock

5,558

5,295

4,854

5,650

6,051

Allocation of operating net income per common stock

class:

Class A common stock

5,558

5,295

4,854

5,650

5,598

Class B common stock

453

Weighted average shares outstanding:

Class A common stock

Basic

20,000,753

19,994,953

18,913,914

15,121,460

Diluted

20,148,208

20,171,261

20,109,783

19,023,686

15,121,460

Class B common stock

Basic

6,121,052

Diluted

6,121,052

Diluted EPS:

(4) (5)

Class A common stock

Net income (loss) per diluted share

0.28

0.26

0.24

0.30

(5.11)

Add back: Exchange and redemption of preferred shares

5.48

Operating net income per diluted share

0.28

0.26

0.24

0.30

0.37

Class B common stock

Net income (loss) per diluted share

(1.02)

Add back: Exchange and redemption of preferred shares

1.09

Operating net income per diluted share

0.07

(1)

The Company believes these non-GAAP measurements

are key indicators of the ongoing earnings power

of the Company.

(2)

During the quarter ended September 30, 2021, 47,473

shares of Class C preferred stock and 11,061,552 shares of Class D

preferred stock were converted into

10,278,072 shares of Class A common stock. Additionally, the Bank closed on the

initial public offering of its Class A common stock on July 27,

2021, in which it

issued 4,600,000 shares of Class A common stock. As such,

the total shares issued and outstanding of Class A common

stock was 18,767,541 shares at September 30,

2021.

(3)

Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding

stock options.

(4)

During the quarter ended September 30, 2021, basic

net loss per share is the same as diluted net loss per share

as the inclusion of all potential common shares

outstanding would have been antidilutive.

(5)

During the quarter ended December 31, 2021, the Company

entered into agreements with the Class B common

shareholders to exchange all outstanding Class B

non-voting common stock for Class A voting common stock

at a ratio of 1 share of Class A common stock for

each 5 shares of Class B non-voting common stock. In

calculating net income (loss) per diluted share for the prior

quarters presented, the allocation of operating net income available

to common stockholders was based on

the weighted average shares outstanding per common share

class to the total weighted average shares outstanding

during each period. The operating net income

allocation was calculated using the weighted average shares

outstanding of Class B common stock on an as-converted basis.

USCB Financial (USCB) 8-KResults of Operations and Financial Condition