USCB filing — read by section

Item 2. Management’s Discussion and Analysis

Item 2. 
Management's Discussion and Analysis of Financial Condition 
and Results of Operations 

 The 
following 
discussion 
and 
analysis 
are 
designed 
to 
provide 
a 
better 
understanding 
of 
the 
consolidated 
financial 
 condition and results 
of operations of 
the Company and 
the Bank, 
its wholly 
owned subsidiary, for 
the quarter and 
six months 
 ended June 30, 2022. This discussion and 
analysis are best read in conjunction with the 
consolidated financial statements 
 and related footnotes 
included in this Form 
10-Q and in the Annual 
Report filed on 
the Form 10-K (“2021 
form 10-K”) filed 
 with the Security and Exchange Commission (“SEC”) for the year 
ended December 31, 2021. 
 This discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause 
 actual results to differ materially 
from management's expectations. Factors that could cause 
such differences are discussed 
 in the 
sections entitled 
"Forward-Looking Statements" 
and Item 
1A “Risk Factors" 
below and 
in the 
2021 Form 
10-K filed 
 with the SEC which is available at the SEC’s website www.sec.gov. 
 Throughout 
this 
document, 
references 
to 
“we,” 
“us,” 
“our,” 
and 
“the 
Company” 
generally 
refer 
to 
USCB 
Financial 
 Holdings, Inc. 
 Forward-Looking Statements 
 This Quarterly Report 
on Form 10-Q 
contains 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 
(Exchange 
Act”). 
The 
words 
“may,” 
“will,” 
“anticipate,” 
“should,” 
“would,” 
 “believe,” 
“contemplate,” 
“expect,” 
“aim,” 
“plan,” 
“estimate,” 
“continue,” 
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, 
 but 
are 
not 
limited 
to, 
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 continuation 
of 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 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 interest rate 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 Form 10-Q and other filings 
we make with the 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 Form 
10-Q 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 

 Table of Contents 
 
 33 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 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, 
 U.S. Century Bank (“Bank”) filed with the Federal Depository 
Institution Corporation (“FDIC”). 
 Non-GAAP Financial Measures 
 This Quarterly 
Report on 
Form 10-Q 
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 
‘Reconciliation 
and 
Management 
 Explanation of Non-GAAP Financial Measures’ 
included in this Form 10-Q.
 Overview 
 The Company, 
the holding 
company of 
the Bank, 
reported net 
income 
of 
$5.3 million 
or $0.26 
per diluted 
share for 
 class A common stock for the three months 
ended June 30, 2022, compared 
with net income of 
$4.1 million or $0.64 
and 
 $0.13 per 
diluted share 
for Class 
A and 
Class B 
common stock, 
respectively, for 
the same 
period in 
2021. In 
December 
 2021, the Company agreed to exchange all the outstanding 
shares of Class B common stock for Class A common stock at 
 a ratio 
of 5 
to 1. 
As of June 30, 
2022 and December 31, 
2021, the Company’s 
only class of 
securities issued and 
outstanding 
 was Class A 
common stock. 
 During the 
first quarter 
in 2022, 
the Board 
of Directors 
(the “Board”) 
approved a 
share repurchase 
program 
of up 
to 
 750,000 shares of Class A common stock. 
Under the repurchase program, 
the Company may 
purchase shares of Class A 
 common 
stock 
on 
a discretionary 
basis from 
time to 
time. As 
of June 
30, 
2022, 
the 
Company 
had 
not 
repurchased 
any 
 shares. 
 In 
evaluating 
our 
financial 
performance, 
we 
consider 
the 
level 
of 
and 
trends 
in 
net 
interest 
income, 
the 
net 
interest 
 margin, the cost of deposits, 
levels and composition of 
non-interest income and non-interest 
expense, performance ratios, 
 asset quality ratios, regulatory capital ratios, and any significant 
event or transaction. 
 Unless otherwise stated, all comparisons in 
the bullet points below are calculated 
for the quarter ended June 30, 2022 
 compared to the quarter ended June 30, 2021 and annualized 
where appropriate: 
 • 
Net 
interest 
income 
increased 
$3.2 
million 
or 
25.4% 
to 
$15.6 million 
from 
$12.5 
million 
for 
the 
quarter 
ended 
 June 30, 2021. 
 • 
Net interest margin (“NIM”) increased to 3.37% from 3.14% 
for the second quarter of 2021. 

 • 
Total assets exceeded $2.0 billion, an increase of $161.1 
million or 8.7%, compared to December 31, 2021. 

 • 
Total loans grew to $1.4 billion, an increase of $182.7 million 
or 15.3%, compared to December 31, 2021. 

 • 
Total deposits increased $148.3 million or 9.3% to $1.7 
billion from $1.6 billion at December 31, 2021. 

 • 
Annualized return on average assets was 1.08% compared 
to 0.98% at June 30, 2021. 
 • 
Annualized return on average stockholders’ equity was 11.38% compared 
to 9.74% at June 30, 2021. 
 • 
The allowance 
for credit 
losses to 
total loans 
ratio decreased 
to 1.15% 
at June 
30, 2022 
from 1.30% 
at June 30, 
 2021. 
 • 
Non-performing loans to total loans was 0.00% at June 
30, 2022 and 2021. 
 • 
The Company and 
the Bank exceeded 
all regulatory 
capital requirements 
and remained 
significantly above 
“well-
 capitalized” guidelines. At June 30, 2022, total risk-based capital ratio for the Company and the Bank were 13.74% 
 and 13.67%, respectively. 

 Table of Contents 
 
 34 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 • 
Tangible book value 
per common share 
(a Non-GAAP financial 
measure) was $9.00 
as of June 30, 
2022, compared 
 to $27.71 
at June 
30, 
2021. The 
decline 
was 
primarily 
driven by 
an 
increase 
in 
issued 
and 
outstanding 
Class A 
 common shares as result of the exchange and redemption of preferred 
shares combined with the completion of the 
 IPO 
in 
2021. 
See 
“Reconciliation 
and 
Management 
Explanation 
for 
Non-GAAP 
Financial 
Measures” 
for 
a 
 reconciliation of this non-GAAP financial measure. 
 Critical Accounting Policies and Estimates 
 The 
consolidated 
financial 
statements 
are 
prepared 
based 
on 
the 
application 
of 
U.S. 
GAAP, 
the 
most 
significant 
of 
 which are described in Note 1 “Summary of Significant Accounting Policies” of 
the Company’s 2021 Form 10-K. To prepare 
 financial 
statements 
in 
conformity 
with 
GAAP, 
management 
makes 
estimates, 
assumptions, 
and 
judgments 
based 
on 
 available information. These estimates, 
assumptions, and judgments affect 
the amounts reported in 
the financial statements 
 and accompanying notes. These estimates, assumptions, 
and judgments are based on information available as of the date 
 of the financial statements and, 
as this information changes, actual results 
could differ from the estimates, assumptions and 
 judgments reflected 
in the 
financial statements. 
In particular, 
management 
has identified 
accounting 
policies that, 
due to 
 the estimates, assumptions and judgments inherent in those policies, are critical in understanding our financial statements. 
 Management has presented the application of these policies 
to the audit and risk committee of our Board. 

 Allowance for Credit Losses 
 The allowance for credit 
losses (“ACL”) is 
a valuation allowance that 
is established through charges 
to earnings in the 
 form of 
a provision for 
credit losses. The 
amount of the 
ACL is 
affected by the 
following: (i) charge-offs 
of loans that 
decrease 
 the allowance; 
(ii) subsequent 
recoveries on 
loans previously 
charged off 
that increase 
the allowance; 
and (iii) 
provisions 
 for credit losses charged to 
income that increase the allowance. 
Management considers the policies 
related to the ACL as 
 the most critical to 
the financial statement 
presentation. The total 
ACL includes activity 
related to allowances 
calculated in 
 accordance with Accounting Standards Codification (“ASC”) 
310, Receivables, and ASC 450, Contingencies. 
 Throughout the year, 
management estimates the probable 
incurred losses in the loan portfolio 
to determine if the ACL 
 is adequate to absorb such losses. The ACL 
consists of specific and general components. 
The specific component relates 
 to loans that are 
individually classified as 
impaired. We follow 
a loan review program 
to evaluate the credit 
risk in the loan 
 portfolio. Loans 
that have 
been identified 
as impaired 
are reviewed 
on a 
quarterly basis 
in order 
to determine 
whether a 
 specific reserve is 
required. The general 
component covers 
non-impaired loans 
and is based 
on industry and 
our specific 
 historical loan 
loss experience, 
volume, growth 
and composition 
of the 
loan portfolio, 
the evaluation 
of our 
loan portfolio 
 through our 
internal 
loan review 
process, general 
current 
economic 
conditions 
both 
internal and 
external to 
us that 
may 
 affect the borrower’s ability to pay, 
value of collateral and other qualitative relevant risk factors. Based on 
a review of these 
 estimates, we 
adjust the ACL 
to a 
level determined by 
management to be 
adequate. Estimates of 
credit losses are 
inherently 
 subjective as they involve an exercise of judgment. 
 The 
CARES 
Act, 
as 
amended 
by 
the 
Consolidated 
Appropriations 
Act, 
2021, 
specified 
that 
COVID-19 
related 
loan 
 modifications executed 
between March 1, 
2020 and 
the earlier 
of (i) 
60 days 
after the 
date of 
termination 
of the 
national 
 emergency declared by President Trump and (ii) January 1, 2022, on loans 
that were current as of December 31, 2019, 
are 
 not TDRs. Additionally, 
under guidance from the federal banking agencies, 
other short-term modifications made on a good 
 faith basis 
in response 
to COVID-19 
to borrowers 
that were 
current prior 
to any 
relief are 
not TDRs 
under ASC 
Subtopic 
 310-40, 
“Troubled 
Debt 
Restructurings 
by 
Creditors.” 
These 
modifications 
include 
short-term 
(i.e., 
up 
to 
six 
months) 
 modifications 
such 
as 
payment 
deferrals, 
fee 
waivers, 
extensions 
of 
repayment 
terms, 
or 
delays 
in 
payment 
that 
are 
 insignificant. The Company’s charge-off policy is to continuously 
review all impaired loans to monitor the Company’s ability 
 to collect them in full at the applicable maturity date and/or in accordance 
with terms of any restructurings. For loans which 
 are collateral dependent, 
or deemed to 
be uncollectible, any 
shortfall in the 
fair value of 
the collateral relative to 
the recorded 
 investment in the loan is charged off. The amount charged 
-off conforms to the amount necessary 
to comply with GAAP. 
 Income Taxes 
 Deferred tax 
assets and 
liabilities are 
recognized for 
the future 
tax consequences 
attributable to 
differences 
between 
 the financial statement carrying amounts of 
existing assets and liabilities and their 
respective tax bases and operating loss 
 and tax credit carryforwards. Deferred tax 
assets and liabilities are measured 
using enacted tax rates expected 
to apply to 
 taxable income 
in the 
years in 
which those 
temporary differences 
are expected 
to be 
recovered or 
settled. The 
effect 
on 
 deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment 
 date. 

 Table of Contents 
 
 35 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Management is required to assess whether a valuation allowance should be established on the net deferred tax assets 
 based on the 
consideration of 
all available evidence 
using a more 
likely than not 
standard. In its 
evaluation, management 
 considers taxable loss 
carry-back availability, expectation of sufficient 
taxable income, trends 
in earnings, the 
future reversal 
 of temporary differences, and available tax planning 
strategies. 
 The Company recognizes positions taken 
or expected to be 
taken in a tax 
return in accordance with existing accounting 
 guidance on 
income taxes 
which prescribes 
a recognition threshold 
and measurement 
process. Interest 
and penalties 
on 
 tax liabilities, if any, would 
be recorded in interest expense and other operating non-interest 
expense, respectively. 
 Segment Reporting 
 Management monitors the revenue streams for all its various 
products and services. The identifiable segments are not 
 material 
and 
operations 
are 
managed 
and 
financial 
performance 
is 
evaluated 
on 
an 
overall 
Company-wide 
basis. 
 Accordingly, all 
the financial service 
operations are 
considered by management 
to be 
aggregated in one 
reportable operating 
 segment.
 Results of Operations 
 General 
 The following 
tables present 
selected balance 
sheet, income 
statement, and 
profitability ratios 
for the 
dates indicated 
 (in thousands, except ratios): 
 June 30, 2022 
 December 31, 2021 
 Consolidated Balance Sheets: 
 Total 
assets 
 $ 
 2,016,086 
 $ 
 1,853,939 
 Total 
loans 
 (1)
 $ 
 1,372,733 
 $ 
 1,190,081 
 Total 
deposits 
 $ 
 1,738,720 
 $ 
 1,590,379 
 Total 
stockholders' equity 
 $ 
 180,068 
 $ 
 203,897 
 (1) 
Loan amounts include deferred fees/costs. 
 Three Months Ended June 30, 
 Six Months Ended June 30, 
 2022 
 2021 
 2022 
 2021 
 Consolidated Statements of Operations: 
 Net interest income before provision for credit losses 
 $ 
 15,642 
 $ 
 12,474 
 $ 
 30,021 
 $ 
 24,949 
 Total 
non-interest income 
 $ 
 1,617 
 $ 
 1,516 
 $ 
 3,562 
 $ 
 3,837 
 Total 
non-interest expense 
 $ 
 9,551 
 $ 
 8,674 
 $ 
 19,163 
 $ 
 17,351 
 Net income 

 $ 
 5,295 
 $ 
 4,053 
 $ 
 10,149 
 $ 
 8,834 
 Net income available to common stockholders 
 $ 
 5,295 
 $ 
 3,299 
 $ 
 10,149 
 $ 
 7,299 
 Profitability: 
 Efficiency ratio 
 55.34% 
 62.00% 
 57.06% 
 60.28% 
 Net interest margin 

 3.37% 
 3.14% 
 3.30% 
 3.24% 
 The Company’s results 
of operations 
depend substantially on 
net interest income 
and non-interest income. 
Other factors 
 contributing 
to 
the 
results 
of 
operations 
include 
our 
provision 
for 
credit 
losses, 
non-interest 
expenses, 
and 
provision 
for 
 income taxes. 
 Three months ended June 30, 2022 compared to the three months 
ended June 30, 2021 

 Net income increased 
to $5.3 million 
for the three 
months ended June 
30, 2022 from 
$4.1 million for 
the same period 
 in 2021. 
Net income 
available to 
common stockholders 
increased $2.0 
million for 
the three 
months ended 
June 30, 2022 
 compared to 
the same 
period in 
2021 primarily 
because of 
increase in 
net interest 
income and 
no dividend 
payments in 
 2022. 

 Six months ended June 30, 2022 compared to six months 
ended June 30, 2021 
 
Net income increased to $10.1 million for 
the six months ended June 30, 2022 
from $8.8 million for the same period 
in 
 2021. 
Net 
income 
available 
to 
common 
stockholders 
increased 
$2.9 
million 
for 
the 
six 
months 
ended 
June 30, 
2022 

 Table of Contents 
 
 36 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 compared to 
the same 
period in 
2021 primarily 
because of 
increase in 
net interest 
income and 
no dividend 
payments in 
 2022. 
 Net Interest Income 
 Net 
interest 
income 
is 
the 
difference 
between 
interest 
earned 
on 
interest-earning 
assets 
and 
interest 
incurred 
on 
 interest-bearing liabilities and 
is the 
primary driver of 
core earnings. Interest 
income is generated 
from interest and 
dividends 
 on 
interest-earning 
assets, 
including 
loans, 
investment 
securities 
and 
other 
short-term 
investments. 
Interest 
expense 
is 
 incurred 
from 
interest 
paid 
on 
interest-bearing 
liabilities, 
including 
interest-bearing 
deposits, 
FHLB 
advances 
and 
other 
 borrowings. 
 To evaluate net 
interest income, we 
measure and monitor 
(i) yields on 
loans and other 
interest-earning assets, (ii) 
the 
 costs of deposits 
and other funding 
sources, (iii) net 
interest spread, and 
(iv) net interest margin. 
Net interest spread is 
equal 
 to the difference between rates 
earned on interest-earning assets 
and rates paid on interest-bearing 
liabilities. Net interest 
 margin is 
equal to 
the annualized 
net interest 
income 
divided by 
average interest 
-earning assets. 
Because 
non-interest-
 bearing sources of funds, such as non-interest-bearing deposits 
and stockholders’ equity, also fund 
interest-earning assets, 
 net interest margin includes the indirect benefit of these 
non-interest-bearing sources. 
 Changes in 
the market 
interest rates 
and interest 
rates we 
earn on 
interest-earning assets 
or pay on 
interest-bearing 
 liabilities, as well 
as the volume 
and types of 
interest-earning assets and interest-bearing 
and non-interest-bearing liabilities, 
 are usually the 
largest drivers 
of periodic changes 
in net interest 
spread, net interest 
margin and net 
interest income. 
Our 
 asset liability committee 
(“ALCO”) has 
in place asset-liability 
management techniques 
to manage major 
factors that 
affect 
 net interest income and net interest margin. 

 Table of Contents 
 
 37 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 The following table contains information related 
to average balance sheet, average yields 
on assets, and average costs 
 of liabilities for the periods indicated (in thousands): 
 Three Months Ended June 30, 
 2022 
 2021 
 Average 
 Balance 
 (1)
 Interest 
 Yield/Rate 
 (2)
 
 Average 
 Balance 
 Interest 
 Yield/Rate 
 (2)
 Assets 
 Interest-earning assets: 
 Loans 
 (3)
 $ 
 1,296,476 
 $ 
 14,053 
 4.35 
 % 
 $ 
 1,088,492 
 $ 
 11,538 
 4.19 
 % 
 Investment securities 
 (4)
 493,352 
 2,510 
 2.04 
 % 
 385,090 
 1,968 
 2.04 
 % 
 Other interest earnings assets 
 69,503 
 121 
 0.70 
 % 
 101,134 
 23 
 0.09 
 % 
 Total 
interest-earning assets 
 1,859,331 
 16,684 
 3.60 
 % 
 1,574,716 
 13,529 
 3.41 
 % 
 Non-interest earning assets 
 109,050 
 
 85,344 
 Total 
assets 
 $ 
 1,968,381 
 
 $ 
 1,660,060 
 Liabilities and stockholders' equity 
 
 Interest-bearing liabilities: 
 
 Interest-bearing demand deposits 
 $ 
 66,349 
 17 
 0.10 
 % 
 $ 
 52,620 
 15 
 0.11 
 % 
 Saving and money market deposits 
 781,076 
 615 
 0.32 
 % 
 607,752 
 523 
 0.35 
 % 
 Time deposits 
 224,284 
 271 
 0.48 
 % 
 235,899 
 379 
 0.65 
 % 
 Total 
interest-bearing deposits 
 1,071,709 
 903 
 0.34 
 % 
 896,271 
 917 
 0.41 
 % 
 Borrowings and repurchase agreements 
 36,330 
 139 
 1.53 
 % 
 36,000 
 138 
 1.52 
 % 
 Total 
interest-bearing liabilities 
 1,108,039 
 1,042 
 0.38 
 % 
 932,271 
 1,055 
 0.45 
 % 
 Non-interest bearing demand deposits 
 644,975 
 
 535,894 
 Other non-interest-bearing liabilities 
 28,770 
 
 24,964 
 Total 
liabilities 
 1,781,784 
 
 1,493,129 
 Stockholders' equity 
 186,597 
 
 166,931 
 Total 
liabilities and stockholders' equity 
 $ 
 1,968,381 
 
 $ 
 1,660,060 
 Net interest income 
 
 $ 
 15,642 
 
 $ 
 12,474 
 Net interest spread 
 (5)
 3.23 
 % 
 2.96 
 % 
 Net interest margin 
 (6)
 3.37 
 % 
 3.14 
 % 
 (1) 
Average balances - Daily average balances are used 
to calculate yields/rates. 
 (2) 
Annualized. 
 (3) 
Average loan balances include non-accrual loans. Interest income 
on loans includes accretion of deferred 
loan fees, net of deferred loan costs. 
 (4) 
At fair value except for securities held to maturity. Includes FHLB stock. 
 (5) 
Net interest spread is the average yield on 
total interest-earning assets minus the average 
rate on total interest-bearing liabilities. 
 (6) 
Net interest margin is the ratio of net interest 
income to average total interest-earning assets. 

 Table of Contents 
 
 38 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Six Months Ended June 30, 
 2022 
 2021 
 Average 
 Balance 
 (1)
 Interest 
 Yield/Rate 
 (2)
 Average 
 Balance 
 (1)
 Interest 
 Yield/Rate 
 (2)
 Assets 
 Interest-earning assets: 
 Loans 
 (3)
 $ 
 1,254,189 
 $ 
 27,035 
 4.35 
 % 
 $ 
 1,080,183 
 $ 
 23,406 
 4.31 
 % 
 Investment securities 
 (4)
 501,758 
 4,839 
 1.94 
 % 
 361,394 
 3,812 
 2.11 
 % 
 Other interest-earnings assets 
 79,763 
 152 
 0.38 
 % 
 89,914 
 39 
 0.90 
 % 
 Total 
interest-earning assets 
 1,835,710 
 32,026 
 3.52 
 % 
 1,531,491 
 27,257 
 3.54 
 % 
 Non-interest earning assets 
 105,374 
 85,718 
 Total 
assets 
 $ 
 1,941,084 
 $ 
 1,617,209 
 Liabilities and stockholders' equity 
 Interest-bearing liabilities: 
 Interest-bearing demand deposits 
 $ 
 65,398 
 33 
 0.10 
 % 
 $ 
 48,607 
 29 
 0.12 
 % 
 Saving and money market deposits 
 758,729 
 1,166 
 0.31 
 % 
 588,282 
 1,071 
 0.37 
 % 
 Time deposits 
 223,781 
 530 
 0.48 
 % 
 241,993 
 933 
 0.78 
 % 
 Total 
interest-bearing deposits 
 1,047,908 
 1,729 
 0.33 
 % 
 878,882 
 2,033 
 0.47 
 % 
 Borrowings and repurchase agreements 
 36,171 
 276 
 1.54 
 % 
 36,000 
 275 
 1.52 
 % 
 Total 
interest-bearing liabilities 
 1,084,079 
 2,005 
 0.37 
 % 
 914,882 
 2,308 
 0.51 
 % 
 Non-interest bearing demand deposits 
 635,740 
 509,283 
 Other non-interest-bearing liabilities 
 27,079 
 23,803 
 Total 
liabilities 
 1,746,898 
 1,447,968 
 Stockholders' equity 
 194,186 
 169,241 
 Total 
liabilities and stockholders' equity 
 $ 
 1,941,084 
 $ 
 1,617,209 
 Net interest income 
 $ 
 30,021 
 $ 
 24,949 
 Net interest spread 
 (5)
 3.15 
 % 
 3.03 
 % 
 Net interest margin 
 (6)
 3.30 
 % 
 3.24 
 % 
 (1) 
Average balances - Daily average balances are used 
to calculate yields/rates. 
 (2) 
Annualized. 
 (3) 
Average loan balances include non-accrual loans. Interest income 
on loans includes accretion of deferred loan 
fees, net of deferred loan costs. 
 (4) 
At fair value except for securities held to maturity. Includes FHLB stock. 
 (5) 
Net interest spread is the average yield on 
total interest-earning assets minus the average 
rate on total interest-bearing liabilities. 
 (6) 
Net interest margin is the ratio of net interest 
income to average total interest-earning assets. 
 Three months ended June 30, 2022 compared to the three months 
ended June 30, 2021 

 Net interest income before the provision 
for credit losses was $15.6 million 
for the three months ended June 
30, 2022, 
 an increase of $3.2 million or 
25.4%, from $12.5 million for 
the same period in 2021. 
This increase was primarily attributable 
 to higher income from larger loan and investment portfolio 
s 
combined with an increase in the weighted average 
loan yield. 

 Included with loan interest 
income are PPP loan 
fees totaling $484 thousand 
and $925 thousand for 
the three months 
 ended June 30, 2022 and 2021, respectively. 
PPP loan fees are recognized upon loan forgiveness by the SBA 
. 

 Net interest margin 
increased to 3.37% 
for the quarter 
ended June 30, 2022 
from 3.14% 
for the same 
period in 2021. 
 The yield for loans and other interest-earning assets increased 
, 
while the overall interest-bearing deposits cost decreased 
. 
 Six months ended June 30, 2022 compared to six months 
ended June 30, 2021 
 Net interest 
income before 
the provision 
for credit 
losses 
was $30.0 
million for 
the six 
months ended 
June 30, 
2022, an 
 increase of $5.1 million or 20.3%, from $24.9 million for the same period in 
2021. This increase was primarily attributable to 
 higher income from larger loan and investment portfolios combined 
with a decrease in the average deposit cost. 

 Included with loan 
interest income are PPP 
loan fees totaling $1.5 
million and $2.4 million 
for the six 
months ended June 30, 
 2022 and 2021, respectively. PPP loan fees are recognized upon 
loan forgiveness by the SBA. 

 Net 
interest 
margin 
increased 
to 
3.30% 
at 
June 30, 
2022 
from 
3.24% 
in 
the 
same 
period 
in 
2021. 
The 
overall 
interest-
 bearing liabilities yields decreased. 

 Table of Contents 
 
 39 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Provision for Credit 
Losses 
 The ACL 
represents probable incurred losses in our portfolio. We maintain an adequate ACL 
that can mitigate probable 
 losses inherent 
in the 
loan portfolio. 
The ACL is increased 
by the 
provision for 
credit losses 
and is 
decreased by 
charge-
 offs, 
net 
of 
recoveries 
on 
prior 
loan 
charge-offs. 
There 
are 
multiple 
credit 
quality 
metrics 
that 
we 
use 
to 
base 
our 
 determination of 
the amount 
of the ACL 
and corresponding 
provision for 
credit losses. 
These credit 
metrics evaluate 
the 
 credit 
quality 
and 
level 
of 
credit 
risk 
inherent 
in 
our 
loan 
portfolio, 
assess 
non-performing 
loans 
and 
charge-offs 
levels, 
 considers statistical and historical trends and economic conditions 
and other applicable factors. 

 Three months ended June 30, 2022 compared to the three months 
ended June 30, 2021 

 The 
provision 
for credit 
loss 
was 
$705 
thousand 
for 
the 
three 
months 
ended 
June 30, 
2022 compared 
no 
provision 
 recorded for the same period in 2021. The primary driver of the provision 
expense was attributed to loan growth. 

 Six months ended June 30, 2022 compared to six months 
ended June 30, 2021 
 
The provision for 
credit loss 
was $705 thousand 
for the six 
months ended 
June 30, 2022 
compared a 
net recovery of 
 $160 thousand for the same period in 2021. The primary driver of the provision expense was attributed to loan growth. The 
 ACL as a percentage of total 
loans decreased to 1.15% 
at June 30, 2022 compared 
to 1.30% at June 30, 
2021 due to the 
 growth of the loan portfolio. 
 See “Allowance for Credit Losses” below for further discussion 
on how the ACL is calculated. 

 Non-Interest Income 
 Our services and products generate service charges and fees, mainly from our depository 
accounts. We also generate 
 income from gain on sale of loans though our swap and SBA 
programs. In addition, we own and are beneficiaries of the life 
 insurance policies 
on some 
of our 
employees and 
generate income 
on the 
increase in 
the cash 
surrender value 
of these 
 policies. 
 The following table presents the components of non-interest 
income for the dates indicated (in thousands): 
 Three Months Ended June 30, 
 Six Months Ended June 30, 
 2022 
 2021 
 2022 
 2021 
 Service fees 
 $ 
 1,083 
 $ 
 903 
 $ 
 1,983 
 $ 
 1,792 
 Gain (loss) on sale of securities available for sale, net 
 (3) 
 187 
 18 
 249 
 Gain on sale of loans held for sale, net 
 22 
 23 
 356 
 987 
 Loan settlement 
 - 
 - 
 161 
 - 
 Other non-interest income 
 515 
 403 
 1,044 
 809 
 Total 
non-interest income 
 $ 
 1,617 
 $ 
 1,516 
 $ 
 3,562 
 $ 
 3,837 
 Three months ended June 30, 2022 compared to the three months 
ended June 30, 2021 

 Non-interest 
income for 
the 
three months 
ended June 
30, 2022 
increased 
$101 thousand 
or 6.7%, 
compared 
to the 
 same period in 2021. This increase was primarily driven by higher 
services fees. 
 Six months ended June 30, 2022 compared to the six 
months ended June 30, 2021 

 Non-interest income for the 
six months ended June 30, 
2022 decreased $275 thousand 
or 7.2%, compared to 
the same 
 period in 2021. This decrease was primarily driven by fewer loan sales 
resulting in reduced gains. 

 Table of Contents 
 
 40 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Non-Interest Expense 
 The following table presents the components of non-interest 
expense for the dates indicated (in thousands):
 Three Months Ended June 30, 
 Six Months Ended June 30, 
 2022 
 2021 
 2022 
 2021 
 Salaries and employee benefits 
 $ 
 5,913 
 $ 
 5,213 
 $ 
 11,788 
 $ 
 10,491 
 Occupancy 
 1,251 
 1,411 
 2,521 
 2,798 
 Regulatory assessment and fees 
 226 
 195 
 439 
 373 
 Consulting and legal fees 
 398 
 373 
 915 
 558 
 Network and information technology services 
 448 
 332 
 835 
 840 
 Other operating 
 1,315 
 1,150 
 2,665 
 2,291 
 Total 
non-interest expense 
 $ 
 9,551 
 $ 
 8,674 
 $ 
 19,163 
 $ 
 17,351 
 Three months ended June 30, 2022 compared to the three months 
ended June 30, 2021 

 Non-interest expense for the 
three months ended June 30, 
2022 increased $877 thousand 
or 10.1%, compared to 
the 
 same period in 2021. The increase 
was primarily driven by higher salaries 
and employee benefits due to 
new hires, salary 
 compensation, and seasonal payroll taxes. 
 Six months ended June 30, 2022 compared to the six 
months ended June 30, 2021 

 Non-interest expense for the six months 
ended June 30, 2022 increased $1.8 
million or 10.4%, compared to the 
same 
 period 
in 
2021. 
The 
increase 
was 
primarily 
driven 
by 
higher 
salaries 
and 
employee 
benefits 
due 
to 
new 
hires, 
salary 
 compensation, and seasonal payroll taxes. 
 Provision for Income Tax 
 Fluctuations in the effective tax rate reflect the effect of the differences in the inclusion or deductibility of certain income 
 and expenses for 
income tax purposes. 
Therefore, future 
decisions on the 
investments we choose 
will affect our 
effective 
 tax rate. Surrender value of 
bank-owned life insurance policies 
covering key employees, purchasing 
municipal bonds, and 
 overall levels of taxable income will be important elements in 
determining our effective tax rate. 
 Three months ended June 30, 2022 compared to the three months 
ended June 30, 2021 

 Income tax expense for the three months 
ended June 30, 2022 increased to $1.7 million from 
$1.3 million for the same 
 period in 2021. The effective tax 
rate for the three months ended June 30, 2022 
was 24.4% and for the three months 
ended 
 2021 was 23.8%. 
 Six months ended June 30, 2022 compared to the six 
months ended June 30, 2021 

 Income tax 
expense for 
the six 
months ended 
June 30, 2022 
increased to 
$3.6 million 
from $2.8 million 
for the 
same 
 period in 2021. The Company’s effective tax rate was 26.0% compared 
to 23.8% for the same period in 2021. 
 For a further discussion 
on income taxes, see 
Note 4 “Income Taxes” to 
the Consolidated Financial 
Statements in this 
 Form 10-Q. 
 Analysis of Financial Condition 
 Total 
assets at June 30, 2022 were 
$2.0 billion, an increase of 
$162.1 million, or 8.7%, 
over total assets of $1.9 
billion 
 at December 
31, 2021. Total 
loans increased 
$182.7 million, 
or 15.3%, 
to $1.4 billion 
at June 30, 
2022 compared 
to $1.2 
 billion at December 31, 
2021. Total deposits increased by $148.3 million, 
or 9.3%, to $1.7 
billion at June 30, 2022 
compared 
 to December 31, 2021. 
 Investment Securities 
 The investment portfolio 
is used and 
managed to provide 
liquidity through cash 
flows, marketability 
and, if necessary, 
 collateral for 
borrowings. The 
investment portfolio 
is also 
used as 
a tool 
to manage 
interest rate 
risk and 
the Company’s 
 capital 
market 
risk 
exposure. 
The 
philosophy 
of 
the 
portfolio 
is 
to 
maximize 
the 
Company’s 
profitability 
taking 
into 

 Table of Contents 
 
 41 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 consideration the Company’s 
risk appetite and 
tolerance, manage 
the asset composition 
and diversification, 
and maintain 
 adequate risk-based capital ratios. 
 The 
investment 
portfolio 
is 
managed 
in 
accordance 
with 
the 
Asset 
and 
Liability 
Management 
(“ALM”) 
policy, 
which 
 includes an 
investment guideline, 
approved by 
the Board. 
Such policy 
is reviewed 
at least 
annually or 
more frequently 
if 
 deemed necessary, 
depending 
on market 
conditions 
and/or 
unexpected 
events. 
The investment 
portfolio 
composition 
is 
 subject to change 
depending on the 
funding and liquidity 
needs of 
the Company, and the interest 
risk management objective 
 directed by the ALCO. The portfolio of investments can be used to modify the duration of the balance 
sheet. The allocation 
 of cash into 
securities takes 
into consideration 
anticipated future cash 
flows (uses 
and sources) and 
all available sources 
 of credit. 
 Our investment portfolio consists 
primarily of securities issued 
by U.S. government-sponsored agencies, 
U.S. 
agency 
 mortgage-backed securities, 
collateralized mortgage 
obligation securities, 
municipal securities, 
and other 
debt securities, 
 all with varying contractual maturities and coupons. Due to the optionality embedded in these securities, the final maturities 
 do not 
necessarily represent the 
expected life of 
the portfolio. Some 
of these 
securities will be 
called or paid 
down depending 
 on capital market conditions and expectations. The investment portfolio is regularly reviewed by the Chief Financial Officer, 
 Treasurer, 
or the 
ALCO of 
the Company 
to ensure 
an appropriate 
risk and 
return profile 
as well 
as for 
adherence to 
the 
 investment policy. 
 As of June 30, 2022, the 
investment portfolio consisted 
of available-for-sale (“AFS”) and 
held-to-maturity (“HTM”) debt 
 securities. During the year ended December 31, 2021, 
there were 28 investment securities that were transferred from AFS 
 to HTM with an 
amortized cost basis 
and fair value amount 
of $67.6 million and 
$68.7 million, respectively. 
On the date of 
 transfer, these securities had a total net unrealized gain of $1.1 
million. The transfer of debt securities from the AFS 
to HTM 
 category was 
made at 
fair value 
at the 
date of 
transfer. 
The unrealized 
gain or 
loss 
at the 
date of 
transfer is 
retained in 
 accumulated other 
comprehensive income 
and in 
the carrying 
value of 
the HTM 
securities. Such 
amounts are 
amortized 
 over the remaining life of 
the security. 
There was no immediate 
impact to net income on 
the date of transfer. 
Two of these 
 transferred securities totaling $2.0 million matured during 
the second quarter of 2022. 

 The book value of the AFS securities is adjusted monthly 
for unrealized gain or loss as a valuation allowance, 
and any 
 gain 
or 
loss 
is 
reported 
on 
an 
after-tax 
basis 
as 
a 
component 
of 
other 
comprehensive 
income 
in 
stockholders’ 
equity. 
 Periodically, 
we 
may 
need 
to 
assess 
whether 
there 
have 
been 
any 
events 
or 
unexpected 
economic 
circumstances 
to 
 indicate that 
a security 
on which 
there is 
an unrealized 
loss is 
impaired on 
an other-than-temporary 
basis (“OTTI”). 
If the 
 impairment 
is 
deemed 
to 
be 
permanent, 
an 
analysis 
is 
then 
made 
considering 
many 
factors, 
including 
the 
severity 
and 
 duration of the impairment, the severity 
of the event, our intent and 
ability to hold the security for a 
period of time sufficient 
 for a 
recovery in 
value, recent 
events specific 
to the 
issuer or 
industry, 
any related 
credit events, 
and for 
debt securities, 
 external 
credit 
ratings 
and 
recent 
downgrades 
related 
to 
deterioration 
of 
credit 
quality. 
Securities 
on 
which 
there 
is 
an 
 unrealized loss 
that is 
deemed to 
be OTTI 
are written 
down to 
fair value, 
with the 
write-down recorded 
as a 
realized loss 
 under line item 
“Gain (loss) on 
sale of securities 
available-for-sale, 
net” of the Consolidated 
Statements of Operations. 
As 
 of June 30, 2022, there are no securities 
which management has classified as OTTI 
. 
For further discussion of our analysis 
 on impaired investment securities for OTTI, see Note 2 “Investment Securities” to the Consolidated Financial Statements in 
 this Form 10-Q. 
 AFS 
and 
HTM 
investment 
securities 
decreased 
$68.1 million 
or 
13.0% 
to 
$456.1 million 
at 
June 30, 
2022 
from 
 $524.2 million 
at December 
31, 2021. 
Investment 
securities 
decreased 
due to 
payments received 
and higher 
unrealized 
 losses. 
Management 
reinvested 
excess 
cash 
balances 
into 
high 
credit 
quality 
investments 
to 
increase 
the 
Company’s 
 profitability and modify the Company’s balance sheet duration according 
to the ALM policy. As of June 
30, 2022, corporate 
 bond securities with a market value 
of $23.6 million were pledged to secure 
public deposits. The investment portfolio 
does 
 not have any tax-exempt securities. 

 Table of Contents 
 
 42 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 The 
following 
table 
presents 
the 
amortized 
cost 
and 
fair 
value 
of 
investment 
securities 
for 
the 
dates 
indicated 
(in 
 thousands): 
 June 30, 2022 
 December 31, 2021 
 Available-for-sale: 
 Amortized 
 Cost 
 Fair Value 
 Amortized 
 Cost 
 Fair Value 
 U.S. Government Agency 
 $ 
 27,816 
 $ 
 25,850 
 $ 
 10,564 
 $ 
 10,520 
 U.S. Treasury 
 2,468 
 2,437 
 - 
 - 
 Collateralized mortgage obligations 
 155,340 
 133,820 
 160,506 
 156,829 
 Mortgage-backed securities - residential 
 111,708 
 95,982 
 120,643 
 118,842 
 Mortgage-backed securities - commercial 
 44,670 
 40,121 
 49,905 
 50,117 
 Municipal securities 
 25,124 
 19,602 
 25,164 
 24,276 
 Bank subordinated debt securities 
 16,503 
 15,972 
 27,003 
 28,408 
 Corporate bonds 
 6,062 
 5,680 
 12,068 
 12,550 
 $ 
 389,691 
 $ 
 339,464 
 $ 
 405,853 
 $ 
 401,542 
 Held-to-maturity: 
 U.S. Government Agency 
 $ 
 34,100 
 $ 
 29,408 
 $ 
 34,505 
 $ 
 33,904 
 Collateralized mortgage obligations 
 40,806 
 35,293 
 44,820 
 43,799 
 Mortgage-backed securities - residential 
 27,478 
 23,524 
 26,920 
 26,352 
 Mortgage-backed securities - commercial 
 3,095 
 2,692 
 3,103 
 3,013 
 Corporate bonds 
 11,192 
 10,150 
 13,310 
 13,089 
 $ 
 116,671 
 $ 
 101,067 
 $ 
 122,658 
 $ 
 120,157 
 The following 
table shows 
the weighted 
average yields, 
categorized by 
contractual maturity, 
for investment 
securities 
 as of June 30, 2022 (in thousands, 
except ratios): 

 Within 1 year 
 After 1 year through 5 
 years 
 After 5 years through 
 10 years 
 After 10 years 
 Total 
 Amortized 
 Cost 
 Yield 
 Amortized 
 Cost 
 Yield 
 Amortized 
 Cost 
 Yield 
 Amortized 
 Cost 
 Yield 
 Amortized 
 Cost 
 Yield 
 Available-for-sale: 
 U.S. Government Agency 
 $ 
 - 
 0.00% 
 $ 
 4,810 
 2.76% 
 $ 
 2,015 
 2.84% 
 $ 
 20,991 
 2.82% 
 $ 
 27,816 
 2.81% 
 U.S. Treasury 
 - 
 0.00% 
 2,468 
 2.32% 
 - 
 0.00% 
 - 
 0.00% 
 2,468 
 2.32% 
 Collateralized mortgage obligations 
 - 
 0.00% 
 - 
 0.00% 
 - 
 0.00% 
 155,340 
 1.49% 
 155,340 
 1.49% 
 MBS - residential 
 - 
 0.00% 
 - 
 0.00% 
 - 
 0.00% 
 111,708 
 1.61% 
 111,708 
 1.61% 
 MBS - commercial 
 - 
 0.00% 
 - 
 0.00% 
 - 
 0.00% 
 44,670 
 1.99% 
 44,670 
 1.99% 
 Municipal securities 

 - 
 0.00% 
 - 
 0.00% 
 1,000 
 2.05% 
 24,124 
 1.72% 
 25,124 
 1.73% 
 Bank subordinated debt securities 
 - 
 0.00% 
 - 
 0.00% 
 16,503 
 4.71% 
 - 
 0.00% 
 16,503 
 4.71% 
 Corporate bonds 
 - 
 0.00% 
 6,062 
 2.59% 
 - 
 0.00% 
 - 
 0.00% 
 6,062 
 2.59% 
 $ 
 - 
 $ 
 13,340 
 $ 
 19,518 
 $ 
 356,833 
 $ 
 389,691 
 1.85% 
 Held-to-maturity: 
 U.S. Government Agency 
 $ 
 - 
 0.00% 
 $ 
 7,890 
 1.03% 
 $ 
 18,540 
 1.32% 
 $ 
 7,670 
 1.58% 
 $ 
 34,100 
 1.31% 
 Collateralized mortgage obligations 
 - 
 0.00% 
 - 
 0.00% 
 - 
 0.00% 
 40,806 
 1.42% 
 40,806 
 1.42% 
 MBS - residential 
 - 
 0.00% 
 1,354 
 2.63% 
 9,224 
 1.61% 
 16,900 
 2.05% 
 27,478 
 1.93% 
 MBS - commercial 
 - 
 0.00% 
 - 
 0.00% 
 3,095 
 1.62% 
 - 
 0.00% 
 3,095 
 1.62% 
 Corporate bonds 
 - 
 0.00% 
 11,192 
 2.71% 
 - 
 0.00% 
 - 
 0.00% 
 11,192 
 2.71% 
 $ 
 - 
 $ 
 20,436 
 $ 
 30,859 
 $ 
 65,376 
 $ 
 116,671 
 1.64% 
 Loans 
 Loans 
are 
the 
largest 
category 
of 
interest-earning 
assets 
on 
the 
Consolidated 
Balance 
Sheets, 
and 
usually 
provide 
 higher yields 
than the 
rest of 
the interest-earning 
assets. Higher 
yields typically 
carry inherent 
credit and 
liquidity risks 
in 
 comparison to lower yield assets. 
The Company manages and mitigates 
such risks in accordance with the 
credit and ALM 
 policies, risk tolerance and balance sheet composition. 

 Table of Contents 
 
 43 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 The following table shows the loan portfolio composition 
as of the dates indicated (in thousands): 
 
 June 30, 2022 
 December 31, 2021 
 Total 
 Percent of 
 Total 
 Total 
 Percent of 
 Total 
 Residential Real Estate 
 $ 
 203,662 
 14.8 
 % 
 $ 
 201,359 
 16.9 
 % 
 Commercial Real Estate 
 843,445 
 61.5 
 % 
 704,988 
 59.2 
 % 
 Commercial and Industrial 
 131,271 
 9.5 
 % 
 146,592 
 12.3 
 % 
 Foreign Banks 
 84,770 
 6.2 
 % 
 59,491 
 5.0 
 % 
 Consumer and Other 

 109,250 
 8.0 
 % 
 79,229 
 6.6 
 % 
 Total 
gross loans 
 1,372,398 
 100.0 
 % 
 1,191,659 
 100.0 
 % 
 Less: Deferred fees (cost) 
 (335) 
 1,578 
 Total 
loans net of deferred fees (cost) 
 1,372,733 
 1,190,081 
 Less: Allowance for credit losses 
 15,786 
 15,057 
 Total 
net loans 
 $ 
 1,356,947 
 $ 
 1,175,024 
 Total 
gross 
loans 
increased 
by 
$180.7 million 
or 
15.2% 
at 
June 30, 
2022 
compared 
to 
December 31, 
2021. 
The 
 commercial real estate 
and to 
a lesser 
extent, foreign banks 
and consumer and 
other loan 
segments had the 
most significant 
 growth partially offset by declines in the commercial and industrial loan segment. Commercial and industrial loans declined 
 primarily because of continuing PPP loan forgiveness. 
 Our 
loan 
portfolio 
continues 
to 
grow, 
with 
commercial 
real 
estate 
lending 
as 
the 
primary 
focus 
which 
represented 
 approximately 61.5% 
of the total 
gross loan portfolio 
as of June 30, 
2022. We 
do not expect 
any significant changes 
over 
 the foreseeable 
future in 
the composition 
of our 
loan portfolio 
or in 
our emphasis 
on commercial 
real estate 
lending. Our 
 loan growth 
strategy 
since 
inception 
has been 
reflective 
of the 
market in 
which 
we operate 
and 
of 
our strategic 
plan 
as 
 approved by the Board. 
 Most of the 
commercial real estate 
exposure represents 
loans to commercial 
businesses secured 
by owner-occupied 
 real estate. 
The growth 
experienced in 
recent years 
is primarily 
due to 
implementation of 
our relationship-based 
banking 
 model and 
the success 
of our 
relationship managers 
in competing 
for new 
business 
in a 
highly competitive 
metropolitan 
 area. Many 
of our 
larger loan 
clients have 
leng-term relationships 
with members 
of our 
senior management 
team or 
our 
 relationship managers that date back to former institutions. 

 From a 
liquidity perspective, 
our loan 
portfolio provides 
us with 
additional 
liquidity due 
to repayments 
or unexpected 
 prepayments. The following table shows maturities and sensitivity 
to interest rate changes for the loan portfolio at June 30, 
 2022 (in thousands): 
 Due in 1 year or 
 less 
 Due in 1 to 5 
 years 
 Due after 5 to 15 
 years 
 Due after 15 
 years 
 Total 
 Residential Real Estate 
 $ 
 10,471 
 $ 
 26,776 
 $ 
 79,213 
 $ 
 87,202 
 $ 
 203,662 
 Commercial Real Estate 
 41,993 
 186,681 
 610,145 
 4,626 
 843,445 
 Commercial and Industrial 
 20,660 
 37,175 
 29,233 
 44,203 
 131,271 
 Foreign Banks 
 84,770 
 - 
 - 
 - 
 84,770 
 Consumer and Other 
 1,338 
 3,732 
 11,856 
 92,324 
 109,250 
 Total 
gross loans 
 $ 
 159,232 
 $ 
 254,364 
 $ 
 730,447 
 $ 
 228,355 
 $ 
 1,372,398 
 Interest rate sensitivity: 
 Fixed interest rates 
 $ 
 125,693 
 $ 
 179,013 
 $ 
 140,784 
 $ 
 115,986 
 $ 
 561,476 
 Floating or adjustable rates 
 33,539 
 75,351 
 589,663 
 112,369 
 810,922 
 Total 
gross loans 
 $ 
 159,232 
 $ 
 254,364 
 $ 
 730,447 
 $ 
 228,355 
 $ 
 1,372,398 
 The information 
presented 
in the 
table above 
is based 
upon the 
contractual 
maturities of 
the individual 
loans, which 
 may be 
subject to 
renewal at 
their contractual 
maturity. 
Renewals will 
depend on 
approval by 
our credit 
department and 
 balance sheet 
composition at the 
time of 
the analysis, 
as well 
as any 
modification of terms 
at the 
loan’s maturity. Additionally, 
 maturity 
concentrations, 
loan 
duration, 
prepayment 
speeds 
and 
other 
interest 
rate 
sensitivity 
measures 
are 
discussed, 
 reviewed, and analyzed by the ALCO. Decisions on term 
rate modifications are discussed as well. 

 As of 
June 30, 
2022, approximately 
59.1% of 
the loans 
have adjustable/variable 
rates and 
40.9% of 
the loans 
have 
 fixed 
rates. 
The 
adjustable/variable 
loans 
re-price 
to 
different 
benchmarks 
and 
tenors 
in 
different 
periods 
of 
time. 
By 

 Table of Contents 
 
 44 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 contractual characteristics, there are no 
material concentrations on anniversary repricing. Additionally, it is 
important to note 
 that most 
of our 
loans have 
interest rate 
floors. This 
embedded option 
protects the 
Company from 
a decrease 
in interest 
 rates and positions us to gain in the scenario of higher interest 
rates. 
 Asset Quality 

 Our asset quality grading 
analysis estimates the capability of 
the borrower to repay 
the contractual obligation of 
the loan 
 agreement as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly 
 graded loans. Internal credit 
risk grades are reviewed 
at least once a 
year, and 
more frequently as 
needed. Internal credit 
 risk ratings 
may change 
based on 
management’s 
assessment of 
the results 
from the 
annual review, 
portfolio monitoring, 
 and other developments observed with borrowers. 

 The internal credit risk grades used by the Company to 
assess the credit worthiness of a loan are shown below: 
 Pass 
 – Loans indicate different levels of satisfactory 
financial condition and performance. 

 Special Mention
 
– Loans classified as special mention have a potential weakness 
that deserves management’s 
 close attention. If left uncorrected, these potential weaknesses 
may result in deterioration of the repayment 
 prospects for the loan or of the institution’s 
credit position at some future date. 

 Substandard 
 – Loans classified as substandard are inadequately protected 
by the current net worth and paying 
 capacity of the obligator or of the collateral pledged, if 
any. Loans so classified 
have a well-defined weakness or 
 weaknesses that jeopardize the liquidation of the debt. 
They are characterized by the distinct possibility that the 
 institution will sustain some loss if the deficiencies are 
not corrected. 

 Doubtful
 
– Loans classified as doubtful have all the weaknesses inherent 
in those classified at substandard, with 
 the added characteristic that the weaknesses make collection 
or liquidation in full on the basis of currently existing 
 facts, conditions, and values, highly questionable and improbable. 

 Loss 
 – Loans classified as loss are considered uncollectible. 
 Loan credit exposures by internally assigned grades are 
as follows for the dates indicated (in thousands): 

 June 30, 2022 
 Pass 
 Special Mention 
 Substandard 
 Doubtful 
 Total 
 Residential Real Estate 
 $ 
 203,662 
 $ 
 - 
 $ 
 - 
 $ 
 - 
 $ 
 203,662 
 Commercial Real Estate 
 841,842 
 1,197 
 406 
 - 
 843,445 
 Commercial and Industrial 
 130,809 
 - 
 462 
 - 
 131,271 
 Foreign Banks 
 84,770 
 - 
 - 
 - 
 84,770 
 Consumer and Other 

 109,040 
 - 
 210 
 - 
 109,250 
 $ 
 1,370,123 
 $ 
 1,197 
 $ 
 1,078 
 $ 
 - 
 $ 
 1,372,398 
 December 31, 2021 
 Pass 
 Special Mention 
 Substandard 
 Doubtful 
 Total 
 Residential Real Estate 
 $ 
 196,778 
 $ 
 - 
 $ 
 4,581 
 $ 
 - 
 $ 
 201,359 
 Commercial Real Estate 
 703,349 
 1,222 
 417 
 - 
 704,988 
 Commercial and Industrial 
 146,039 
 - 
 553 
 - 
 146,592 
 Foreign Banks 
 59,491 
 - 
 - 
 - 
 59,491 
 Consumer and Other 

 79,005 
 - 
 224 
 - 
 79,229 
 $ 
 1,184,662 
 $ 
 1,222 
 $ 
 5,775 
 $ 
 - 
 $ 
 1,191,659 

 Table of Contents 
 
 45 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Non-Performing Assets 
 The following table presents non-performing assets as 
of the dates shown (in thousands, 
except ratios): 
 June 30, 2022 
 December 31, 2021 
 Non-accrual loans, less non-accrual TDR loans 
 $ 
 - 
 $ 
 1,190 
 Non-accrual TDRs 
 - 
 - 
 Loans past due over 90 days and still accruing 
 - 
 - 
 Total 
non-performing loans 
 - 
 1,190 
 Other real estate owned 
 - 
 - 
 Total 
non-performing assets 
 $ 
 - 
 $ 
 1,190 
 Asset quality ratios: 
 Allowance for credit losses to total loans 
 1.15% 
 1.27% 
 Allowance for credit losses to non-performing loans 
 0% 
 1,265% 
 Non-performing loans to total loans 
 0% 
 0.10% 
 Non-performing 
assets include 
all loans 
categorized as 
non-accrual or 
restructured, 
impaired securities, 
non-accrual 
 troubled debt restructuring 
(“TDRs”), other real 
estate owned (“OREO”) 
and other repossessed 
assets. Problem 
loans for 
 which the collection 
or liquidation 
in full 
is reasonably 
uncertain are 
placed on 
a non-accrual 
status. This 
determination is 
 based on current existing facts concerning collateral values and the paying capacity of 
the borrower. When the collection of 
 the full contractual 
balance is unlikely, 
the loan is 
placed on non-accrual 
to avoid overstating 
the Company’s 
income for a 
 loan with increased credit risk. 

 If the 
principal or 
interest on 
a commercial 
loan becomes 
due and 
unpaid for 
90 days 
or more, 
the loan 
is placed 
on 
 non-accrual status as of 
the date it becomes 
90 days past due 
and remains in non-accrual 
status until it meets 
the criteria 
 for restoration to accrual status. 
Residential loans, on 
the other hand, are placed 
on non-accrual status when 
the principal 
 or interest 
becomes due 
and unpaid 
for 120 
days or 
more and 
remains in 
non-accrual status 
until it 
meets the 
criteria for 
 restoration 
to 
accrual 
status. 
Restoring 
a 
loan 
to 
accrual 
status 
is 
possible 
when 
the 
borrower 
resumes 
payment 
of 
all 
 principal and interest 
payments for a period 
of six months 
and the Company 
has a documented 
expectation of repayment 
 of the remaining contractual principal and interest or the 
loan becomes secured and in the process of collection. 
 A TDR is 
a debtor 
that is experiencing 
financial difficulties 
and to whom 
the Company grants 
a loan concession. 
This 
 determination 
is performed 
during the 
annual 
review 
process 
or whenever 
problems 
are surfacing 
regarding 
the client’s 
 ability to repay in accordance with 
the original terms of the loan 
or line of credit. In general, 
a borrower that can obtain funds 
 from sources 
other than 
the Company 
at market 
interest rates 
at or 
near those 
for non-troubled 
debt is 
not involved 
in a 
 troubled debt 
restructuring. 
The concessions 
are given 
to the 
debtor 
in various 
forms, 
including 
interest rate 
reductions, 
 principal 
forgiveness, 
extension 
of 
maturity 
date, 
waiver, 
or 
deferral 
of 
payments 
and 
other 
concessions 
intended 
to 
 minimize potential losses. 
 The following tables present performing and non-performing 
TDRs at the dates indicated (in thousands): 
 June 30, 2022 
 December 31, 2021 
 Accrual Status 
 Non-Accrual 
 Status 
 Total TDRs 
 Accrual Status 
 Non-Accrual 
 Status 
 Total TDRs 
 Residential real estate 
 $ 
 7,307 
 $ 
 - 
 $ 
 7,307 
 $ 
 7,815 
 $ 
 - 
 $ 
 7,815 
 Commercial real estate 
 594 
 - 
 594 
 696 
 - 
 696 
 Commercial and industrial 
 99 
 - 
 99 
 141 
 - 
 141 
 Consumer and other 

 210 
 - 
 210 
 224 
 - 
 224 
 Total 
 $ 
 8,210 
 $ 
 - 
 $ 
 8,210 
 $ 
 8,876 
 $ 
 - 
 $ 
 8,876 
 The Company allocated 
$319 thousand and $360 
thousand of specific 
allowance for TDR loans 
at June 30, 2022 and 
 December 31, 
2021, respectively. 
There 
was 
no 
commitment 
to 
lend additional 
funds to 
these 
TDR 
customers 
at either 
 date. 

 During the 
quarter ended 
June 30, 2022 
and 2021, 
there were 
no defaults 
on TDR 
loans within 
the prior 
12 months. 
 Additionally, the Company 
did not have any new TDR loans during the three months 
ended June 30, 2022 and 2021. 
 The 
Company 
provided 
financial 
relief 
to 
borrowers 
impacted 
by 
COVID-19 
and 
provided 
modifications 
to 
include 
 interest 
only 
deferral 
or 
principal 
and 
interest 
deferral. 
These 
modifications 
are 
excluded 
from 
TDR, 
classification 
under 
 Section 4013 of the CARES Act or under applicable interagency 
guidance of the federal banking regulators. 

 Table of Contents 
 
 46 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 For further 
discussion on 
non-performing loans, 
see Note 
3 “Loans” 
to the Consolidated 
Financial Statements 
on this 
 Form 10-Q. 
 Allowance for Credit Losses 
 In 
determining 
the 
balance 
of 
the 
allowance 
account, 
loans 
are 
pooled 
by 
product 
segments 
with 
similar 
risk 
 characteristics and management 
evaluates the ACL on 
each segment and on 
a regular basis to maintain 
the allowance at 
 an 
adequate 
level 
based 
on 
factors 
which, 
in 
management’s 
judgment, 
deserve 
current 
recognition 
in 
estimating 
credit 
 losses. 
Such 
factors 
include 
changes 
in 
prevailing 
economic 
conditions, 
historical 
loss 
experience, 
delinquency 
trends, 
 changes in the composition and size of the loan portfolio 
and the overall credit worthiness of the borrowers. 
 Additionally, 
qualitative adjustments 
are made to 
the ACL when, 
based on management’s 
judgment, there are 
factors 
 impacting the allowance estimate not considered by the 
quantitative calculations. 

 Table of Contents 
 
 47 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 The following table presents ACL and net charge-offs to average loans by 
type for the periods indicated (in thousands): 
 Residential 
 Real Estate 
 Commercial 
 Real Estate 
 Commercial 
 and Industrial 
 Foreign 

 Banks 
 Consumer 
 and Other 
 Total 
 Three Months Ended June 30, 2022 
 
 Beginning balance 
 $ 
 2,357 
 $ 
 9,183 
 $ 
 2,355 
 $ 
 491 
 $ 
 688 
 $ 
 15,074 
 Provision for credit losses 
 9 
 107 
 311 
 160 
 118 
 705 
 Recoveries 
 - 
 - 
 5 
 - 
 3 
 8 
 Charge-offs 
 - 
 - 
 - 
 - 
 (1) 
 (1) 
 Ending Balance 

 $ 
 2,366 
 $ 
 9,290 
 $ 
 2,671 
 $ 
 651 
 $ 
 808 
 $ 
 15,786 
 Average loans 
 $ 
 198,812 
 799,846 
 126,434 
 76,968 
 94,416 
 1,296,476 
 Net charge-offs to average loans 
 
 0.00% 
 0.00% 
 -0.02% 
 0.00% 
 -0.01% 
 0.00% 
 Six Months Ended June 30, 2022 
 
 Beginning balance 
 $ 
 2,498 
 $ 
 8,758 
 $ 
 2,775 
 $ 
 457 
 $ 
 569 
 $ 
 15,057 
 Provision for credit losses 
 (148) 
 532 
 (115) 
 194 
 242 
 705 
 Recoveries 
 32 
 - 
 11 
 - 
 3 
 46 
 Charge-offs 
 (16) 
 - 
 - 
 - 
 (6) 
 (22) 
 Ending Balance 

 $ 
 2,366 
 $ 
 9,290 
 $ 
 2,671 
 $ 
 651 
 $ 
 808 
 $ 
 15,786 
 Average loans 
 $ 
 198,453 
 769,978 
 133,009 
 68,400 
 84,349 
 1,254,189 
 Charge-offs 
 -0.02% 
 0.00% 
 -0.02% 
 0.00% 
 0.01% 
 0.00% 
 Residential 
 Real Estate 
 Commercial 
 Real Estate 
 Commercial 
 and Industrial 
 Foreign 

 Banks 
 Consumer 
 and Other 
 Total 
 Three Months Ended June 30, 2021 
 
 Beginning balance 
 $ 
 3,087 
 $ 
 9,320 
 $ 
 2,005 
 $ 
 407 
 $ 
 190 
 $ 
 15,009 
 Provision for credit losses 
 (322) 
 (568) 
 398 
 147 
 345 
 - 
 Recoveries 
 4 
 - 
 64.00 
 - 
 1 
 69 
 Charge-offs 
 (229) 
 - 
 - 
 - 
 (1) 
 (230) 
 Ending Balance 

 $ 
 2,540 
 $ 
 8,752 
 $ 
 2,467 
 $ 
 554 
 $ 
 535 
 $ 
 14,848 
 Average loans 
 $ 
 216,190 
 $ 
 650,871 
 $ 
 160,968 
 $ 
 48,551 
 $ 
 11,912 
 $ 
 1,088,492 
 Net charge-offs to average loans 
 
 0.42% 
 0.00% 
 -0.16% 
 0.00% 
 0.00% 
 0.06% 
 Six Months Ended June 30, 2021 
 
 Beginning balance 
 $ 
 3,408 
 $ 
 9,453 
 $ 
 1,689 
 $ 
 348 
 $ 
 188 
 $ 
 15,086 
 Provision for credit losses 
 (647) 
 (701) 
 627 
 206 
 355 
 (160) 
 Recoveries 
 8 
 - 
 151 
 - 
 2 
 161 
 Charge-offs 
 (229) 
 - 
 - 
 - 
 (10) 
 (239) 
 Ending Balance 

 $ 
 2,540 
 $ 
 8,752 
 $ 
 2,467 
 $ 
 554 
 $ 
 535 
 $ 
 14,848 
 
 Average loans 
 $ 
 223,628 
 $ 
 638,444 
 $ 
 163,922 
 $ 
 45,432 
 $ 
 8,757 
 $ 
 1,080,183 
 Net charge-offs to average loans 
 0.20% 
 0.00% 
 -0.19% 
 0.00% 
 0.18% 
 0.01% 
 Bank-Owned Life Insurance 
 As of June 30, 
2022, the combined 
cash surrender value 
of all bank-owned 
life insurance (“BOLI”) 
policies was $42.2 
 million. Changes in 
cash surrender value 
are recorded to 
non-interest income in 
the Consolidated Statements 
of Operations. 
 The Company had BOLI policies with five insurance carriers. 
The Company is the beneficiary of these policies. 
 Deposits 
 Customer deposits are the 
primary funding source for 
the Bank’s growth. 
Through our network of 
banking centers, we 
 offer a competitive array of deposit 
accounts and treasury management services designed 
to meet our customers’ business 
 needs. 
Our 
primary 
deposit 
customers 
are 
small-to-medium 
sized 
businesses 
(“SMBs”), 
and 
the 
personal 
business 
of 
 owners and operators of these SMBs, as well as the retail/consumer 
relationships of the employees of these businesses. 

 Table of Contents 
 
 48 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 The following table 
presents the daily 
average balance and 
average rate paid 
on deposits by 
category for 
the periods 
 presented (in thousands, except ratios): 
 Three Months Ended June 30, 
 2022 
 2021 
 Average Balance 
 Average Rate 
 Paid 
 Average Balance 
 Average Rate 
 Paid 
 Non-interest-bearing demand deposits 
 $ 
 644,975 
 0.00% 
 $ 
 535,894 
 0.00% 
 Interest-bearing demand deposits 
 66,349 
 0.10% 
 52,620 
 0.11% 
 Saving and money market deposits 
 781,076 
 0.32% 
 607,752 
 0.35% 
 Time deposits 
 224,284 
 0.48% 
 235,899 
 0.65% 
 $ 
 1,716,684 
 0.21% 
 $ 
 1,432,165 
 0.26% 
 The 
uninsured 
deposits 
are 
estimated 
based 
on 
the 
FDIC 
deposit 
insurance 
limit 
of 
$250 thousand 
for 
all 
deposit 
 accounts at 
the Bank 
per account 
holder. Total estimated uninsured deposits 
were $1.0 billion and 
$897.8 million at June 30, 
 2022 and December 31, 2021, respectively. 

 The following table shows scheduled maturities of uninsured 
time deposits as of June 30, 2022 (in thousands): 
 June 30, 2022 
 Three months or less 
 $ 
 27,087 
 Over three through six months 
 22,393 
 Over six though twelve months 
 31,622 
 Over twelve months 
 23,301 
 $ 
 104,403 
 Other Liabilities 
 The Company collects from commercial loan customers 
funds which are held in escrow for future payment of 
real 
 estate taxes and insurance. These escrow funds are disbursed 
by the Company directly to the insurance companies 
and 
 taxing authority of the borrower. 
Escrow funds are recognized as other liabilities. 

 As of June 30, 2022 escrow balances totaled $10.2 million 
compared to $4.0 million at December 31, 2021. 
 Borrowings 
 As a 
member of 
the FHLB, we 
are eligible for 
advances with various 
terms and conditions. 
This accessibility of 
additional 
 funding allows 
us to 
efficiently 
and timely 
meet both 
expected and 
unexpected outgoing 
cash flows 
and collateral 
needs 
 without adversely affecting either daily operations or the financial condition 
of the Company. 
 As of June 30, 
2022 we had 
$66.0 million of 
fixed-rate advances outstanding 
from the FHLB 
with a weighted 
average 
 rate of 1.55%. Most of the advances are due in the first 
two calendar quarters of 2025. 

 The following table presents the FHLB fixed rate advances 
as of June 30, 2022 (in thousands): 
 Interest Rate 
 Type of Rate 
 Maturity Date 
 Amount 
 0.81% 
 Fixed 
 August 17, 2023 
 $ 
 5,000 
 1.04% 
 Fixed 
 July 30, 2024 
 5,000 
 2.05% 
 Fixed 
 March 27, 2025 
 10,000 
 1.91% 
 Fixed 
 March 28, 2025 
 5,000 
 1.81% 
 Fixed 
 April 17, 2025 
 5,000 
 1.07% 
 Fixed 
 July 18, 2025 
 6,000 
 1.58% 
 Fixed 
 July 14, 2022 
 30,000 
 $ 
 66,000 
 We 
have 
also 
established 
Fed 
Funds 
lines 
of 
credit 
with 
our 
upstream 
correspondent 
banks 
to 
manage 
temporary 
 fluctuations in our daily cash balances. 
As of June 30, 2022, there 
were no outstanding balances with 
the Fed Funds lines 
 of credit.

 Table of Contents 
 
 49 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Off-Balance Sheet Arrangements 
 We engage 
in various financial 
transactions in 
our operations 
that, under GAAP, 
may not be 
included on 
the balance 
 sheet. To 
meet the financing needs 
of our customers we may 
include commitments to extend 
credit and standby letters 
of 
 credit. To 
a varying 
degree, such 
commitments involve 
elements of 
credit, market, 
and interest 
rate risk 
in excess 
of the 
 amount recognized 
in the 
balance sheet. 
We use 
more conservative 
credit and 
collateral policies 
in making 
these credit 
 commitments than 
we do 
for on-balance 
sheet items. 
We are 
not aware 
of any accounting 
loss to 
be incurred 
by funding 
 these commitments; 
however, 
we 
maintain 
an 
allowance 
for 
off-balance 
sheet 
credit 
risk 
which 
is recorded 
under 
other 
 liabilities on the Consolidated Balance Sheets. 
 Since commitments associated with letters of 
credit and commitments to extend 
credit may expire unused, the 
amounts 
 shown 
do 
not 
necessarily 
reflect 
actual 
future 
cash 
funding 
requirements. 
The 
following 
table 
presents 
lending 
related 
 commitments outstanding as of the dates indicated (in thousands 
): 
 June 30, 2022 
 December 31, 2021 
 Commitments to grant loans and unfunded lines of credit 
 $ 
 142,498 
 $ 
 134,877 
 Standby and commercial letters of credit 
 3,843 
 6,420 
 $ 
 146,341 
 $ 
 141,297 
 Commitments to extend credit are agreements to lend funds to a client, as long as there is no violation of any condition 
 established 
in 
the 
contract, 
for 
a 
specific 
purpose. 
Commitments 
generally 
have 
variable 
interest 
rates, 
fixed 
expiration 
 dates or 
other 
termination 
clauses 
and 
may require 
payment 
of 
a fee. 
Since many 
of the 
commitments 
are 
expected to 
 expire without being 
fully drawn, the 
total commitment 
amounts disclosed 
above do not 
necessarily represent 
future cash 
 requirements. 
 Unfunded lines of credit represent unused portions of credit facilities to our current borrowers that represent no change 
 in credit risk in our portfolio. Lines 
of credit generally have variable interest 
rates. The maximum potential amount 
of future 
 payments we could 
be required to 
make is represented 
by the contractual 
amount of the 
commitment, less 
the amount of 
 any advances made. 
 Letters of credit are 
conditional commitments issued 
by us to guarantee 
the performance of a 
client to a third 
party. 
In 
 the event of nonperformance by 
the client in accordance with the 
terms of the agreement with the 
third party, 
we would be 
 required to fund 
the commitment. 
If the commitment 
is funded, we 
would be entitled 
to seek recovery 
from the client 
from 
 the underlying collateral, 
which can include 
commercial real estate, 
physical plant and 
property, inventory, receivables, cash 
 or marketable securities. 
 Asset and Liability Management Committee 
 Members 
of 
senior 
management 
and 
our 
Board 
make 
up 
the 
asset 
and 
liability 
management 
committee, 
or 
ALCO. 
 Senior management is responsible for ensuring that Board 
approved strategies, policies, and procedures for managing and 
 mitigating risks are appropriately executed within the designated 
lines of authority and responsibility in a timely 
manner. 
 ALCO 
oversees 
the 
establishment, 
approval, 
implementation, 
and 
review 
of 
interest 
rate 
risk, 
management, 
and 
 mitigation strategies, ALM related policies, ALCO procedures 
and risk tolerances and appetite. 
 While some degree 
of IRR (“Interest 
Rate Risk”) is 
inherent to the banking 
business, we 
believe our ALCO 
has put in 
 place sound risk management practices to identify, 
quantify, monitor, 
and limit IRR exposures. 
 When assessing 
the scope 
of IRR 
exposure 
and 
impact on 
the consolidated 
balance sheet, 
cash 
flows and 
income 
 statement, 
management 
considers 
both 
earnings 
and 
economic 
impacts. 
Asset 
price 
variations, 
deposits 
volatility 
and 
 reduced earnings or outright losses could adversely affect 
the Company’s liquidity, 
performance, and capital adequacy. 
 Income simulations 
are used 
to assess 
the impact 
of changing 
rates on 
earnings under 
different rates 
scenarios and 
 time horizons. 
These simulations 
utilize both 
instantaneous and 
parallel changes 
in the 
level of 
interest rates, 
as well 
as 
 non-parallel changes such as changing slopes (flat and steeping) and 
twists of the yield curve, Static simulation models are 
 based on current exposures and 
assume a constant balance sheet with 
no new growth. Dynamic simulation analysis 
is also 
 utilized to have a 
more comprehensive assessment 
on IRR. This simulation 
relies on detailed 
assumptions outlined in 
our 
 budget and strategic plan, and in assumptions regarding changes in 
existing lines of business, new business, management 
 strategies and client expected behavior. 

 Table of Contents 
 
 50 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 To 
have 
a 
more 
complete 
picture 
of 
IRR, 
the 
Company 
also 
evaluates 
the 
economic 
value 
of 
equity 
(“EVE”). 
This 
 assessment 
allows 
us 
to 
measure 
the 
degree 
to 
which 
the 
economic 
values 
will 
change 
under 
different 
interest 
rate 
 scenarios (parallel and non-parallel). The economic value approach focuses on a longer-term time horizon and captures all 
 future cash flows expected 
from existing assets and 
liabilities. The economic value 
model utilizes a static 
approach in that 
 the analysis 
does not 
incorporate new 
business; rather, 
the analysis 
shows a 
snapshot in 
time of 
the risk 
inherent in 
the 
 balance sheet.
 Market and Interest Rate Risk Management 
 According to our last ALCO model run as of June 30, 2022, we are an 
asset-sensitive company for years one and two. 
 This indicates that our 
assets generally reprice 
faster than our liabilities, 
which results in 
a favorable impact to 
net interest 
 income when market interest rates 
increase. Many assumptions are used 
to calculate the impact of interest 
rate variations 
 on our 
net interest 
income, such 
as asset 
prepayment speeds, 
non-maturity deposit 
price sensitivity, 
pricing correlations, 
 deposit truncations and decay rates, and key rate drivers. 
 Because of the inherent 
use of these estimates and 
assumptions in the model, 
our actual results may, 
and most likely 
 will, differ from static measures results. In addition, static measures like 
EVEs do not include actions that management may 
 undertake to manage the risks in response to anticipated changes in interest rates or client deposit behavior. As part of our 
 ALM strategy 
and 
policy, 
management 
has the 
ability 
to modify 
the 
balance sheet 
to 
either increase 
asset 
duration 
and 
 decrease liability 
duration to reduce 
asset sensitivity, 
or to decrease 
asset duration and 
increase liability duration 
in order 
 to increase asset sensitivity. 
 According to our model, 
as of June 30, 
2022, NIM should 
increase for static rate 
scenarios (-400 basis 
points or +400 
 basis points). 
For the static 
forecast in year 
one, the 
estimated NIM 
will remain 
stable from 
the 
base case 
scenario to 
a 
 +400 basis points scenario. Additionally, utilizing an EVE 
approach, we analyze the risk 
to capital from the 
effects of various 
 interest 
rate 
scenarios 
through 
a 
long-term 
discounted 
cash 
flow 
model. 
This 
measures 
the 
difference 
between 
the 
 economic value of our assets and the economic value 
of our liabilities, which is a proxy for our liquidation value. 
According 
 to our 
balance 
sheet 
composition, 
and 
as expected, 
our model 
stipulates 
that 
an 
increase 
of rates 
will 
have 
a 
negative 
 impact on the EVE. Results and analysis are presented quarterly 
to the Board, and strategies are defined. 
 We have also 
been reducing asset 
sensitivity by extending 
asset duration, which 
has lowered our 
net interest income 
 volatility and allowed us to keep the net interest income 
consistent with ALCO objectives. 
 Liquidity 
 Liquidity is defined 
as a Company’s 
capacity to meet 
its cash and 
collateral obligations at 
a reasonable cost. 
Maintaining 
 an adequate level of liquidity depends on the Company’s ability to 
efficiently meet both expected and unexpected cash flow 
 and collateral needs without adversely affecting 
either daily operations or the financial condition of the 
Company. 
 Liquidity risk 
is the 
risk that 
we will 
be unable 
to meet 
our short-term 
and long-term 
obligations as 
they become 
due 
 because of an inability 
to liquidate assets or 
obtain relatively adequate funding. The 
Company’s obligations, and the funding 
 sources 
used 
to 
meet 
them, 
depend 
significantly 
on 
our 
business 
mix, 
balance 
sheet 
structure 
and 
composition, 
credit 
 quality of our assets and the cash flow profiles of our on- 
and off-balance sheet obligations. 
 In managing 
inflows and 
outflows, 
management 
regularly 
monitors situations 
that can 
give rise 
to increased 
liquidity 
 risk. These 
include funding 
mismatches, market 
constraints on 
the ability 
to convert 
assets (particularly 
investments) into 
 cash or in accessing sources of funds (i.e., market liquidity), 
and contingent liquidity events. 
 Changes in macroeconomic conditions, as well as exposure 
to credit, market, operational, legal and reputational 
risks, 
 such as 
cybersecurity risk, 
could have 
an unexpected 
impact on 
the Company’s 
liquidity risk 
profile and 
are factored 
into 
 the assessment of liquidity and the ALM framework. 
 Management has established 
a comprehensive and 
holistic management process for 
identifying, measuring, monitoring 
 and 
mitigating 
liquidity 
risk. 
Due 
to 
its 
critical 
importance 
to 
the 
viability 
of 
the 
Company, 
liquidity 
risk 
management 
is 
 integrated into our risk management processes and ALM 
policy. 
 Critical elements of our liquidity 
risk management include: effective corporate governance consisting of 
oversight by the 
 Board and active 
involvement of senior 
management; appropriate strategies, policies, 
procedures, and limits 
used to identify 
 and mitigate liquidity risk; comprehensive liquidity risk measurement and 
monitoring systems (including assessments of the 
 current and prospective cash flows or sources and uses of funds) that are commensurate with the complexity and 
business 
 activities of 
the Company; 
active management 
of intraday 
liquidity and 
collateral; an 
appropriately diverse 
mix of 
existing 

 Table of Contents 
 
 51 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 and 
potential 
future 
funding 
sources; 
adequate 
levels 
of 
highly 
liquid 
marketable 
securities 
free 
of 
legal, 
regulatory, 
or 
 operational 
impediments, 
that 
can 
be 
used 
to 
meet 
liquidity 
needs 
in 
stressful 
situations; 
comprehensive 
contingency 
 funding plans 
that sufficiently address 
potential adverse liquidity 
events and emergency 
cash flow 
requirements; and internal 
 controls 
and 
internal 
audit 
processes 
sufficient 
to 
determine 
the 
adequacy 
of 
the 
institution’s 
liquidity 
risk 
management 
 process. 
 We 
expect 
funds 
to 
be 
available 
from 
several 
basic 
banking 
activity 
sources, 
including 
the 
core 
deposit 
base, 
the 
 repayment and maturity of loans and investment security 
cash flows. Other potential funding sources include 
federal funds 
 purchased, brokered certificates 
of deposit, listing 
certificates of deposit, 
and borrowings 
from the FHLB. 
Accordingly, 
our 
 liquidity 
resources 
were 
adequate 
to 
fund 
loans 
and 
meet 
other 
cash 
needs 
as 
necessary. 
We 
do 
not 
expect 
liquidity 
 resources to be compromised at this time.
 Capital Adequacy 
 As 
of 
June 30, 
2022, 
the 
Bank 
was 
well 
capitalized 
under 
the 
FDIC’s 
prompt 
corrective 
action 
framework. 
We 
also 
 follow the capital conservation 
buffer framework, 
and as of June 
30, 2022, we 
exceeded the capital 
conversation buffer 
in 
 all capital ratios, according to our actual ratios. The following table presents the 
capital ratios for both the Company and the 
 Bank at the dates indicated (in thousands, 
except ratios): 
 Actual 
 Minimum Capital 
 Requirements 

 To be Well Capitalized 
 Under Prompt Corrective 
 Action Provisions 
 Amount 
 Ratio 
 Amount 
 Ratio 
 Amount 
 Ratio 
 June 30, 2022: 
 Total 
risk-based capital: 
 USCB Financial Holdings, Inc. 
 $ 
 202,417 
 13.74 
 % 
 $ 
 117,842 
 8.00 
 % 
 $ 
 147,302 
 10.00 
 % 
 U.S. Century Bank 
 $ 
 201,314 
 13.67 
 % 
 $ 
 117,842 
 8.00 
 % 
 $ 
 147,302 
 10.00 
 % 
 Tier 1 risk-based capital: 
 
 USCB Financial Holdings, Inc. 
 $ 
 186,384 
 12.65 
 % 
 $ 
 88,381 
 6.00 
 % 
 $ 
 117,842 
 8.00 
 % 
 U.S. Century Bank 
 $ 
 185,281 
 12.58 
 % 
 $ 
 88,381 
 6.00 
 % 
 $ 
 117,842 
 8.00 
 % 
 Common equity tier 1 capital: 
 USCB Financial Holdings, Inc. 
 $ 
 186,384 
 12.65 
 % 
 $ 
 66,286 
 4.50 
 % 
 $ 
 95,746 
 6.50 
 % 
 U.S. Century Bank 
 $ 
 185,281 
 12.58 
 % 
 $ 
 66,286 
 4.50 
 % 
 $ 
 95,746 
 6.50 
 % 
 Leverage ratio: 
 
 USCB Financial Holdings, Inc. 
 $ 
 186,384 
 9.43 
 % 
 $ 
 79,040 
 4.00 
 % 
 $ 
 98,800 
 5.00 
 % 
 U.S. Century Bank 
 $ 
 185,281 
 9.38 
 % 
 $ 
 79,040 
 4.00 
 % 
 $ 
 98,800 
 5.00 
 % 
 December 31, 2021:
 (1)
 Total 
risk-based capital 
 $ 
 186,735 
 14.92 
 % 
 $ 
 100,125 
 8.00 
 % 
 $ 
 125,157 
 10.00 
 % 
 Tier 1 risk-based capital 
 $ 
 171,484 
 13.70 
 % 
 $ 
 75,094 
 6.00 
 % 
 $ 
 100,125 
 8.00 
 % 
 Common equity tier 1 capital 
 $ 
 171,484 
 13.70 
 % 
 $ 
 56,321 
 4.50 
 % 
 $ 
 81,352 
 6.50 
 % 
 Leverage ratio 
 $ 
 171,484 
 9.55 
 % 
 $ 
 71,825 
 4.00 
 % 
 $ 
 89,781 
 5.00 
 % 
 (1) 
As of December 31, 2021, the regulatory capital 
ratios for both USCB Financial Holdings, Inc. and 
U.S. Century Bank were the same since there 
 was no activity between both of these entities. 

 Impact of Inflation 
 Our 
Consolidated 
Financial 
Statements 
and 
related 
notes 
have 
been 
prepared 
in 
accordance 
with 
U.S. 
GAAP, 
 which require the measurement of financial 
position and operating results in terms 
of historical dollars, without considering 
 the changes in the 
relative purchasing power 
of money over time 
due to inflation. The 
impact of inflation is 
reflected in the 
 increased cost of operations. 
Unlike most industrial companies, 
nearly all our assets and 
liabilities are monetary in 
nature. 
 As a result, 
interest rates have a 
greater impact on our 
performance than do the 
effects of general levels 
of inflation. Periods 
 of high inflation 
are often accompanied 
by relatively higher 
interest rates, and 
periods of low 
inflation are accompanied 
by 
 relatively lower interest rates. 
As market interest rates 
rise or fall in relation 
to the rates earned 
on loans and investments, 
 the 
value 
of 
these 
assets 
decreases 
or 
increases 
respectively. 
Inflation 
can 
also 
impact 
core 
non-interest 
expenses 
 associated with delivering the Company’s services. 
 Recently Issued Accounting Pronouncements
 
 Table of Contents 
 
 52 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Recently issued accounting 
pronouncements are discussed 
in Note 1 “Summary 
of Significant Accounting Policies” 
to 
 the Consolidated Financial Statements on this Form 10-Q.
 Reconciliation and Management Explanation of Non 
-GAAP Financial 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. The 
following table reconciles the non-GAAP financial measurement 
 of operating net income available to common stockholders for the periods presented (in thousands, 
except per share data):
 As of or For the Three Months Ended 
 6/30/2022 
 3/31/2022 
 12/31/2021 
 9/30/2021 
 6/30/2021 
 Pre-Tax Pre-Provision ("PTPP") Income:
 (1)
 
Net income 

 $ 
 5,295 
 $ 
 4,854 
 $ 
 5,650 
 $ 
 6,593 
 $ 
 4,053 
 
Plus: Provision for income taxes 
 1,708 
 1,858 
 $ 
 1,751 
 $ 
 2,088 
 $ 
 1,263 
 
Plus: Provision for (recovery of) credit losses 
 705 
 - 
 $ 
 - 
 $ 
 - 
 $ 
 - 
 
PTPP income 
 $ 
 7,708 
 $ 
 6,712 
 $ 
 7,401 
 $ 
 8,681 
 $ 
 5,316 
 PTPP Return on Average Assets:
 (1)
 
PTPP income 
 $ 
 7,708 
 $ 
 6,712 
 $ 
 7,401 
 $ 
 8,681 
 $ 
 5,316 
 
Average assets 
 $ 
 1,968,381 
 $ 
 1,913,484 
 $ 
 1,828,037 
 $ 
 1,741,423 
 $ 
 1,660,060 
 
PTPP return on average assets
 (2)
 1.57% 
 $ 
 1.42% 
 $ 
 1.61% 
 $ 
 1.98% 
 $ 
 1.28% 
 Operating Net Income: 
 
Net income 
 $ 
 5,295 
 $ 
 4,854 
 $ 
 5,650 
 $ 
 6,593 
 $ 
 4,053 
 
Less: Net gains (losses) on sale of 
securities 
 (3) 
 $ 
 21 
 $ 
 35 
 $ 
 (70) 
 $ 
 187 
 
Less: Tax effect on sale of securities 
 1 
 $ 
 (5) 
 $ 
 (9) 
 $ 
 17 
 $ 
 (46) 
 
Operating net income 
 $ 
 5,297 
 $ 
 4,838 
 $ 
 5,624 
 $ 
 6,646 
 $ 
 3,912 
 Operating PTPP Income:
 (1)
 
PTPP income 
 $ 
 7,708 
 $ 
 6,712 
 $ 
 7,401 
 $ 
 8,681 
 $ 
 5,316 
 
Less: Net gains (losses) on sale of 
securities 
 (3) 
 $ 
 21 
 $ 
 35 
 $ 
 (70) 
 $ 
 187 
 
Operating PTPP Income 
 $ 
 7,711 
 $ 
 6,691 
 $ 
 7,366 
 $ 
 8,751 
 $ 
 5,129 
 Operating PTPP Return on Average Assets:
 (1)
 
Operating PTPP income 
 $ 
 7,711 
 $ 
 6,691 
 $ 
 7,366 
 $ 
 8,751 
 $ 
 5,129 
 
Average assets 
 $ 
 1,968,381 
 $ 
 1,913,484 
 $ 
 1,828,037 
 $ 
 1,741,423 
 $ 
 1,660,060 
 
Operating PTPP Return on average assets
 (2)
 1.57% 
 $ 
 1.42% 
 $ 
 1.60% 
 $ 
 1.99% 
 $ 
 1.24% 
 Operating Return on Average Assets:
 (1)
 
Operating net income 
 $ 
 5,297 
 $ 
 4,838 
 $ 
 5,624 
 $ 
 6,646 
 $ 
 3,912 
 
Average assets 
 $ 
 1,968,381 
 $ 
 1,913,484 
 $ 
 1,828,037 
 $ 
 1,741,423 
 $ 
 1,660,060 
 
Operating return on average assets
 (2)
 1.08% 
 $ 
 1.03% 
 $ 
 1.22% 
 $ 
 1.51% 
 $ 
 0.95% 
 (1) 
The Company believes these non-GAAP measurements 
are a key indicator of the ongoing earnings 
power of the Company. 
 (2) Annualized. 

 Table of Contents 
 
 53 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 As of or For the Three Months Ended 
 6/30/2022 
 3/31/2022 
 12/31/2021 
 9/30/2021 
 6/30/2021 
 Tangible book value per common share (at period-end):
 (1)
 Total stockholders' equity (GAAP) 
 $ 
 180,068 
 $ 
 192,039 
 $ 
 203,897 
 $ 
 201,918 
 $ 
 166,302 
 Less: Intangible assets 
 - 
 - 
 - 
 - 
 - 
 Less: Preferred stock 
 - 
 - 
 - 
 - 
 24,616 
 Tangible stockholders' equity (non-GAAP) 
 $ 
 180,068 
 $ 
 192,039 
 $ 
 203,897 
 $ 
 201,918 
 $ 
 141,686 
 Total shares issued and outstanding (at period-end):
 (2)
 Class A common shares 
 20,000,753 
 20,000,753 
 19,991,753 
 18,767,541 
 3,889,469 
 Class B common shares 
 - 
 - 
 - 
 1,224,212 
 1,224,212 
 Total common shares issued and outstanding 
 20,000,753 
 20,000,753 
 19,991,753 
 19,991,753 
 5,113,681 
 Tangible book value per common share (non-GAAP) 
 $ 
 9.00 
 $ 
 9.60 
 $ 
 10.20 
 $ 
 10.10 
 $ 
 27.71 
 
 Operating net income available to common stockholders:
 (1)
 Net income (GAAP) 
 $ 
 5,295 
 $ 
 4,854 
 $ 
 5,650 
 $ 
 6,593 
 $ 
 4,053 
 Less: Preferred dividends 
 - 
 - 
 - 
 542 
 754 
 Less: Exchange and redemption of preferred shares 
 - 
 - 
 - 
 89,585 
 - 
 Net income (loss) available to common stockholders 
(GAAP) 
 5,295 
 4,854 
 5,650 
 (83,534) 
 3,299 
 Add back: Exchange and redemption of preferred 
shares 
 - 
 - 
 - 
 89,585 
 - 
 Operating net income avail. to common stock (non-GAAP) 

 $ 
 5,295 
 $ 
 4,854 
 $ 
 5,650 
 $ 
 6,051 
 $ 
 3,299 
 Allocation of operating net income per common 
stock class: 
 
 Class A common stock 
 $ 
 5,295 
 $ 
 4,854 
 $ 
 5,650 
 $ 
 5,598 
 $ 
 2,509 
 Class B common stock 
 $ 
 - 
 $ 
 - 
 $ 
 - 
 $ 
 453 
 $ 
 790 
 Weighted average shares outstanding: 
 Class A common stock 
 
 Basic 
 20,000,753 
 19,994,953 
 18,913,914 
 15,121,460 
 3,889,469 
 Diluted 
 20,171,261 
 20,109,783 
 19,023,686 
 15,187,729 
 3,933,636 
 Class B common stock 
 Basic 
 - 
 - 
 - 
 6,121,052 
 6,121,052 
 Diluted 
 - 
 - 
 - 
 6,121,052 
 6,121,052 
 Diluted EPS: 
 (3) (4)
 
 Class A common stock 
 Net income (loss) per diluted share (GAAP) 
 $ 
 0.26 
 $ 
 0.24 
 $ 
 0.30 
 $ 
 (5.11) 
 $ 
 0.64 
 Add back: Exchange and redemption of preferred 
shares 
 - 
 - 
 - 
 5.48 
 - 
 Operating net income per diluted share (non-GAAP) 
 $ 
 0.26 
 $ 
 0.24 
 $ 
 0.30 
 $ 
 0.37 
 $ 
 0.64 
 Class B common stock 
 Net income (loss) per diluted share (GAAP) 
 $ 
 - 
 $ 
 - 
 $ 
 - 
 $ 
 (1.02) 
 $ 
 0.13 
 Add back: Exchange and redemption of preferred 
shares 
 - 
 - 
 - 
 1.09 
 - 
 Operating net income per diluted share (non-GAAP) 
 $ 
 - 
 $ 
 - 
 $ 
 - 
 $ 
 0.07 
 $ 
 0.13 
 (1) 
The Company believes these non-GAAP measurements are 
a key indicator 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 
 exchanged for an aggregate of 10,278,072 shares 
of Class A common stock. Additionally, the Bank completed 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) 
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. 

 (4) 
During the quarter ended December 31, 2021, 
the Company entered into agreements with 
the Class B shareholders to exchange all 
outstanding 
 shares of Class B non-voting stock for Class A 
voting common stock at a ratio of 5 to 1. 
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 a as-converted basis. 

 Table of Contents 
 
 54 
USCB Financial Holdings, Inc. 
Q2 2022 Form 10-Q 
 Item 3. 
Quantitative and Qualitative Disclosures About Market Risk 
 
 As a smaller reporting company, 
we are not required to provide the information required 
by this item.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
USCB FINANCIAL HOLDINGS, INC. 10-Q

Item 2. Management’s Discussion and Analysis
