What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-11-12 compared with 2024-08-12 · 469 added, 393 removed, 1274 unchanged (40% of the section changed)

3 unchanged sentences

(Dollars in thousands, except share data)

June 30, 2024

September 30, 2024

December 31, 2023

3 unchanged sentences

Investment securities held to maturity, net of allowance of $

, respectively (fair value $

for both periods (fair value $

, respectively)

20 unchanged sentences

Preferred stock - Class C;

$1.00 par value;

per share liquidation preference;

issued and outstanding as of June 30, 2024

and December 31, 2023

52,748 shares

0 and 0 issued and outstanding as

of September 30, 2024 and December 31, 2023

Preferred stock - Class D;

$1.00 par value;

per share liquidation preference;

issued and outstanding as of June 30, 2024

and December 31, 2023

0 and 0 issued and outstanding as

of September 30, 2024 and December 31,

Preferred stock - Class E;

per share liquidation preference;

issued and outstanding as of June 30, 2024

and December 31, 2023

$1.00 par value;

share liquidation preference;

3,185,024 shares

0 and 0 issued and outstanding as

of of September 30, 2024 and December 31,

Common stock - Class A Voting;

shares authorized;

as of June 30, 2024,

issued and outstanding as of December 31,

$1.00 par value;

45,000,000 shares

19,620,632 issued and

as of September 30, 2024, 19,575,435 issued and

outstanding as of

December 31, 2023

Common stock - Class B Non-voting;

8,000,000 shares authorized;

outstanding as of June 30, 2024 and December

outstanding as of September 30, 2024 and

December 31, 2023

Additional paid-in capital on common stock

11 unchanged sentences

except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Interest income:

40 unchanged sentences

(Dollars in thousands)

Three Months Ended June 30,

Six Months Ended

Three Months Ended

September 30,

Nine Months Ended

September 30,

Other comprehensive income (loss):

Unrealized gain (loss) on investment securities

Amortization of net unrealized gain (loss) on securities

Amortization of net unrealized gain on securities

transferred from

2 unchanged sentences

in net income

Unrealized gain on cash flow hedge

Unrealized gain (loss) on cash flow hedge

Total other comprehensive income (loss), net of tax

14 unchanged sentences

Stockholders'

Balance at March 31, 2024

Balance at June 30,2024

Other comprehensive income

Repurchase of Class A common stock

Restricted stock issued

Dividend payment

Stock-based compensation

Balance at September 30,2024

Balance at June 30, 2023

Balance at March 31, 2023

Cumulative effect of adoption of accounting principle

related to ASC 326

Adjusted beginning balance after cumulative

effect adjustment

Other comprehensive loss

Repurchase of Class A common stock

Restricted stock issued

Restricted stock forfeiture

Stock-based compensation

Balance at June 30, 2023

Balance at September 30, 2023

The accompanying notes are an integral

part of these consolidated financial statements.

USCB Financial Holdings, Inc.

Q2 2024 Form 10-Q

Additional Paid-in

4 unchanged sentences

Balance at December 31, 2023

Other comprehensive loss

Other comprehensive income

Repurchase of Class A common stock

4 unchanged sentences

Stock-based compensation

Balance at June 30, 2024

Balance at September 30, 2024

Balance at December 31, 2022

6 unchanged sentences

Restricted stock issued

Restricted stock forfeiture

Stock-based compensation

Balance at June 30, 2023

Balance at September 30, 2023

The accompanying notes are an integral

5 unchanged sentences

(Dollars in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

6 unchanged sentences

Stock-based compensation

Loss (gain) on sale of available for sale securities

(Gain) loss on sale of available for sale securities

Gain on sale of loans held for sale

19 unchanged sentences

Proceeds from the sale of loans held for sale

Purchase of Bank owned life insurance

Proceeds from the redemption of Federal

10 unchanged sentences

Repayments on Federal Home Loan Bank advances

and other borrowings

Net cash provided by financing activities

Net increase in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning

39 unchanged sentences

financial statements

with the Company’s consolidated

audited financial statements and

with the Company’s audited

consolidated financial statements and

related notes appearing in

82 unchanged sentences

consolidated financial statements.

Improvements to Reportable Segment Disclosures

2023-07, “Improvements

to Reportable

Segment Disclosures.”

standard is effective

for fiscal years beginning

after December 15,

interim periods beginning

after December

The Company is evaluating the impact of the

changes to its existing disclosures.

INVESTMENT SECURITIES

40 unchanged sentences

the expected loss if a borrower were to default.

The Company monitors

quality of held

securities through

credit ratings.

monitors the credit

quality of HTM

securities through the

credit ratings.

are monitored by

the Company on

a quarterly basis.

June 30, 2024

ratings are monitored

by the Company on

at least a quarterly basis.

As of September 30, 2024

and December 31, 2023,

2023, all HTM

held by the Company were rated investment grade.

all HTM securities held

by the Company were rated investment grade.

mortgage-backed

6 unchanged sentences

methodology to estimate

value for debt

securities classified

represents amortized

less the ACL related to these securities.

The Company determined that

an ACL on its debt

securities available for sale

as of June 30,

2024 and December 31,

2023 was not required.

thousand ACL as of September

The book value

for debt securities classified

as HTM represents amortized

cost less the ACL related to these securities.

September 30,

December 31, 2023 was not required.

USCB FINANCIAL HOLDINGS, INC.

8 unchanged sentences

value of investment securities at the dates indicated (in

June 30, 2024

September 30, 2024

Available-for-sale:

29 unchanged sentences

Securities held-to maturity, net of allowance for credit losses

During the quarter

30, 2024 there

investment securities

that were transferred

from available-for-

sale (“AFS”) to HTM.

For the three months ended June 30, 2024, total amortization out of Additional Other Comprehensive

amortization out of Additional

Other Comprehensive Income

(“AOCI”) for net unrealized

losses on securities transferred

2022 from AFS to HTM was $

During the quarter ended

September 30, 2024 there were

investment securities that were

transferred from available-

September 30,

Comprehensive

on securities

unamortized net

unrealized loss

September 30,

September 30, 2024,

total amortization

out of Additional

Other Comprehensive

Income (“AOCI”) for

net unrealized

on securities transferred in 2022 from AFS to HTM was

transferred from AFS to HTM was $

In addition for these securities,

the balance of the net unrealized

retained in AOCI was $

million at December 31, 2023.

USCB FINANCIAL HOLDINGS, INC.

4 unchanged sentences

The following table presents the proceeds, realized gross gains and realized gross losses on sales and

calls of AFS debt securities for the three and six months

ended June 30, 2024 and 2023 (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

calls of AFS debt securities for the three and nine months

ended September 30, 2024 and 2023 (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Available-for-sale:

16 unchanged sentences

Held-to-maturity

June 30, 2024:

September 30, 2024:

Due within one year

6 unchanged sentences

Mortgage-backed securities - commercial

At June 30, 2024,

there were no

securities held in

the portfolio from

any one issuer

in an amount greater

stockholders’

collateralized

mortgage-backed

At September 30,

securities held

portfolio from

10% of total stockholders’

equity other than the U.S.

Government and Government Agency

All the collateralized

mortgage obligations and mortgage-backed securities at September 30, 2024 and

December 31, 2023 were issued by U.S.

sponsored entities

attributable to a combination of factors, including relative

changes in interest rates since the time of purchase.

The contractual

9 unchanged sentences

expects to recover the entire amortized cost basis of these

At June 30, 2024,

the Company did not

intend to sell debt

securities that are in

an unrealized loss position and

than likely not required to sell these securities before recovery

of the amortized cost basis.

At September 30, 2024, the Company did not intend to

sell debt securities that are in an unrealized loss position

is more than likely not required to sell these securities

before recovery of the amortized cost basis.

The Bank is a Qualified Public Depository (“QPD”) with the State of Florida.

2 unchanged sentences

municipalities,

securities pledged to the State of

Florida at a ratio of

% of the outstanding uninsured deposits

for June 30, 2024 and

minimum amount

securities to

As of June 30, 2024, the

Bank had a total of $

million in deposits under the

public funds program and pledged

the State of Florida for these public funds were

securities pledged

the outstanding

uninsured deposits

at September 30,

% at December 31, 2023.

must also maintain a minimum amount of pledged

securities to be in the public

funds program.

September 30,

pledged to the State of Florida for these public funds were

bonds with an aggregate fair value of $

4 unchanged sentences

bonds with an aggregate fair value of $

Federal Reserve

2023, announced

of the Federal

Reserve System,

announced the

Funding Program (“BTFP”).

1 unchanged sentence

mortgage-backed

securities, and other qualifying

assets as collateral.

pledged assets were valued

BTFP program ceased

making new loans as of March 2024.

securities, and other qualifying assets as collateral.

BTFP program ceased making new loans as of March

USCB FINANCIAL HOLDINGS, INC.

3 unchanged sentences

borrowings under

program during

quarter 2024.

maturity of this

borrowing under the

was January 2025,

are no remaining

borrowings under

The following table is a summary of the distribution of

loans held for investment by type (in thousands):

June 30, 2024

September 30, 2024

December 31, 2023

2 unchanged sentences

Commercial and Industrial

Foreign Banks

Correspondent Banks

Consumer and Other

2 unchanged sentences

Allowance for credit losses

respectively,

At September 30, 2024

and December 31, 2023,

the Company had

million and $

million, respectively,

commercial real estate

4 unchanged sentences

Allowance for Credit Losses

methodology to estimate the quantitative portion

of the ACL for loan

The DCF uses a

loss driver analysis (“LDA”) and

discounted cash flow

methodology to

quantitative portion

driver analysis

(“LDA”) and discounted cash flow analyses.

Management engaged

advisors and consultants

with expertise in

CECL model development

in development

on regression

supportable forecast.

data obtained

forecasts in projective

Economic forecasts

applied to regression

models to estimate

probability of default

receivables use at least one

of the following economic indicators:

unemployment rate (national), real gross domestic

product growth (national

House Price Index (“HPI”).

the segments in

which the WARM methodology

the long-term

quarterly basis

Adjustments for economic expectations are made through

qualitative factors.

advisors and consultants with expertise in CECL model

development to

development of

regression models

and supportable

of reasonable

default for loan receivables use at least

one of the following economic indicators:

civilian unemployment rate (national), real

gross domestic

product growth

(national GDP)

Index (“HPI”).

WARM methodology is used,

the long-term average

calculated and applied

on a quarterly

basis for the

life of the pool.

Adjustments for economic expectations are

made through qualitative factors.

Qualitative factors (“Q-Factors”) used in the ACL methodology

2 unchanged sentences

Changes in nature and volume of portfolio

Changes in the volume and severity of past due loans and other similar conditions

Changes in the volume and severity of past due loans

and other similar conditions

Concentration risk

1 unchanged sentence

The effect of other external factors:

e.g., competition, legal, and regulatory requirements

e.g., competition,

legal, and regulatory requirements

Changes in lending management, among others

3 unchanged sentences

Q3 2024 Form 10-Q

Changes in the ACL for the three and six months ended June

30, 2024 and 2023 were as follows (in thousands):

Three Months Ended June 30, 2024

Changes in the

three and nine

months ended September 30,

2024 and 2023

were as follows

(in thousands):

Correspondent

Three Months Ended September 30,

Beginning balance

1 unchanged sentence

Ending Balance

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Beginning balance

3 unchanged sentences

thousand charge due to unfunded commitments included in other liabilities and a $

thousand charge related to investment securities held to maturity.

thousand release related to investment securities held to maturity.

(2) Provision for credit losses excludes a $

thousand charge due to unfunded commitments included in other liabilities and a $

thousand charge related to investment securities held to maturity.

Three Months Ended June 30, 2023

thousand charge due to unfunded commitments included in other liabilities.

Correspondent

Three Months Ended September 30,

Beginning balance

1 unchanged sentence

Ending Balance

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Beginning balance

9 unchanged sentences

thousand expense related to investment securities held to maturity.

million compared

At September 30, 2024,

million compared to

million at December 31,

million in the ACL was due to loan growth.

Charge offs for the three months ended

June 30, 2024 totaled $

thousand and were all originated in

for the six months ended June 30, 2024 totaled $

September 30,

Charge-offs for the nine months ended September

30, 2024 totaled $

thousand and were all originated in 2024.

3 unchanged sentences

Q3 2024 Form 10-Q

offs totaling

charge offs related to loans were originated in 2015 and

thousand related to loans were originated in 2023.

thousand originated

originated in

improvements in

unemployment and a

slight slower

growth forecast

September 30,

related to loans.

thousand was related to loans originated

in 2023 and $

thousand of charge offs was related to

originated in 2015.

September 30,

deterioration in unemployment

improvement forecast for

Fannie Mae HPI forecast

reflected minimal

reflected moderate

improvement in national housing prices

9 unchanged sentences

expected losses on the residential loan segment.

As of June 30,

2024, for every 100 basis points increase in the HPI

approximately

As of September 30, 2024, for every 100 basis points increase in the HPI

index, the forecast reduces

reserves by approximately $

thousand and about

basis point to

the reserve coverage ratio,

everything else being

This sensitivity

analysis provides a

hypothetical result to

assess the sensitivity

sensitivity analysis provides

a hypothetical result

to assess the

sensitivity of the

and does not represent a change in management’s

As of June 30, 2024, we stress

tested two qualitative factors in our commercial

real estate loan pool, as it’s

our portfolio.

the qualitative

September 30, 2024,

qualitative factors

in our commercial

largest segment

evaluated the

qualitative factors

sensitivity of

1 unchanged sentence

risk resulted

sensitivity analysis

hypothetical result

the sensitivity

represent a change in management’s judgement.

outstanding balances

specified loan

categories as

December 31, 2023

% increase in ACL.

This sensitivity analysis provides a

hypothetical result to assess the sensitivity of

the ACL and does

not represent a change in management’s judgement.

the outstanding balances

in the specified

loan categories

as of September

2023 are as follows (in thousands):

and Industrial

June 30, 2024:

Correspondent

September 30, 2024:

Allowance for credit losses:

20 unchanged sentences

on the borrower,

documentation

periodically.

USCB FINANCIAL HOLDINGS, INC.

2 unchanged sentences

Q3 2024 Form 10-Q

documentation

periodically.

The Company's internally assigned credit risk grades are as follows:

30 unchanged sentences

presented below for the periods indicated (in thousands):

As of June 30, 2024

As of September 30, 2024

Term Loans by Origination Year

2 unchanged sentences

Commercial and

Foreign banks

Correspondent banks

Consumer and other

9 unchanged sentences

Commercial and

Foreign banks

Correspondent banks

Consumer and other

11 unchanged sentences

payment performance

December 31, 2023 (in thousands):

As of June 30, 2024

The following

tables include

accruing loans

of September 30,

and December 31, 2023 (in thousands):

As of September 30, 2024

Residential real estate:

9 unchanged sentences

Commercial and industrial:

Foreign banks

Correspondent banks

Consumer and other

15 unchanged sentences

Commercial and industrial:

Foreign banks

Correspondent banks

Consumer and other

6 unchanged sentences

past due over

and still accruing as of June 30, 2024 and as of December

31, 2023 (in thousands):

June 30, 2024

and still accruing as of September 30, 2024 and as of

December 31, 2023 (in thousands):

September 30, 2024

Days and Still

1 unchanged sentence

Commercial and industrial

Consumer and other

December 31, 2023

8 unchanged sentences

the three months

ended June 30,

2024 and 2023.

ended September 30, 2024 and

Interest income

these loans for

on these loans for

the three months

ended June 30,

ended September 30,

2024 and 2023,

1 unchanged sentence

approximately $

thousand, respectively,

had these loans performed in accordance with their

original terms.

thousand, respectively, had these loans performed

in accordance with

their original terms.

Interest income on

USCB FINANCIAL HOLDINGS, INC.

2 unchanged sentences

Q3 2024 Form 10-Q

September 30, 2024

been approximately

thousand, respectively,

had these loans performed in accordance with their

original terms.

Collateral-Dependent Loans

1 unchanged sentence

collateral dependent

loans as of June 30,

2024, or as of December 31, 2023.

loans as of September 30, 2024, or as of December 31,

Loan Modifications to Borrowers Experiencing Financial

The following

table presents

newly restructured

modification, which

occurred during

ended June 30, 2024 (in thousands):

The following table

presents newly restructured

loans, by type of

modification, which occurred

during the nine

ended September 30, 2024 (in thousands):

Recorded Investment Prior to Modification

5 unchanged sentences

Commercial and industrial

The Company had

no new modifications to

borrowers experiencing financial difficulties for

the three months

30, 2024 and one new modification for the six months ended June 30, 2024.

existing loan modifications that

modification to borrowers experiencing

financial difficulties for

the three and six

months ended June 30,

existing loan modifications that subsequently defaulted

for the three and six months ended June 30, 2023.

modifications

September 30,

new modification

September 30,

loan modifications that subsequently

defaulted during the three

months and nine

months ended September 30,

September 30, 2023.

existing loan modifications that subsequently

defaulted for the three and nine

ended September 30, 2023.

The Company’s provision for income taxes is presented

in the following table for the periods indicated (in thousands):

Six Months Ended June 30,

The actual income tax

expense for the six

months ended June 30, 2024 and

2023 differs from the statutory

for the periods (computed by

applying the U.S.

federal corporate tax

Nine Months Ended September 30,

The actual income tax expense for the nine months

ended September 30, 2024 and 2023 differs

from the statutory tax

expense for the periods (computed by applying the U.S.

federal corporate tax rate of

% for both 2024 and 2023

to income before

provision for income taxes) as follows (in thousands):

Six Months Ended June 30,

to income before provision for income taxes) as follows

(in thousands):

Nine Months Ended September 30,

Federal taxes at statutory rate

7 unchanged sentences

tax liabilities as of the dates indicated were (in thousands):

June 30, 2024

September 30, 2024

December 31, 2023

38 unchanged sentences

With few exceptions, the Company is no longer subject to U.S.

federal and state income tax examinations by tax

authorities for years before 2020.

For the three months and six months ended June 30, 2024 and 2023, the Company did

t have any unrecognized tax

federal and state income tax return examinations

by tax authorities for years before 2020.

September 30,

unrecognized tax benefits

as a result of

tax positions taken

during a prior

period or during

the current period.

Additionally,

penalties were recorded as a result of tax uncertainties.

interest or penalties were recorded as a result

of tax uncertainties.

OFF-BALANCE SHEET ARRANGEMENTS

27 unchanged sentences

Q3 2024 Form 10-Q

June 30, 2024 and December 31, 2023 (in thousands):

June 30, 2024

September 30, 2024 and December 31, 2023 (in thousands):

September 30, 2024

December 31, 2023

39 unchanged sentences

Interest Rate Swaps Designated as a Cash Flow Hedge

interest rate

swap agreements

notional aggregate

were designated

interest rate

average maturity

As of September 30,

2024, the Company

interest rate swap

agreements with a

notional aggregate amount

million that were designated as cash flow hedges of certificates of deposit.

The interest rate swap agreements have an

compound SOFR being received.

14 unchanged sentences

Interest Rate Swaps Designated as Fair Value

As of June 30,

2024, the Company

interest rate swap

agreements with a

notional aggregate amount

million that were designated as fair value hedges on loans.

rate swap agreements have an average maturity of

As of December

31, 2023, the

interest rate swap

agreements with a

notional aggregate amount

years, the weighted average fixed-rate paid

%, with the weighted average

3-month compound SOFR

being received.

corresponding recognition in the assets being hedged.

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q2 2024 Form 10-Q

During the quarter

ended September 30, 2024,

the Company unwound

fair value interest rate

aggregate amount

interest rate

and asset-liability management strategies.

termination fee to unwind the

fair value swaps totaled $

termination fees

category will

remining life

straight-line basis with full recognition of the unamortized

cost upon the early payoff of the hedge

The amortization of

the termination fee

is reflected in

the loan interest income

statement of operations.

The original maturities of

years at the date of termination.

Interest Rate Swaps

2 unchanged sentences

interest rate swaps

December 31, 2023,

respectively.

These interest

mature between

Company entered

September 30,

December 31, 2023, respectively.

At September 30, 2024, these

interest rate swaps mature between

2025 and 2051.

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q3 2024 Form 10-Q

corresponding

Company to provide the counterparty

with funds to be held as collateral

which the Company reports as other

the Consolidated

Balance Sheets.

derivatives represent

economic hedges,

accounting purposes.

derivatives requires the Company to

provide the counterparty with funds to

be held as collateral which

the Company reports

as other assets under

the Consolidated Balance

While these derivatives

represent economic hedges,

qualify as hedges for accounting purposes.

The following table reflects the Company’s

1 unchanged sentence

Balance Sheet Location

June 30, 2024:

September 30, 2024:

Derivatives designated as cash flow hedges:

Interest rate swaps

Derivatives designated as hedging instruments:

Interest rate swaps

Other liabilities

Derivatives not designated as hedging instruments:

73 unchanged sentences

generally include

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q2 2024 Form 10-Q

equity securities that

9 unchanged sentences

observable for the

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q3 2024 Form 10-Q

markets that are

37 unchanged sentences

classified within Level 2 of the hierarchy.

June 30, 2024 and December 31, 2023 for each of the

fair value hierarchy levels (in thousands):

June 30, 2024

September 30, 2024 and December 31, 2023 for each

of the fair value hierarchy levels (in thousands):

September 30, 2024

December 31, 2023

21 unchanged sentences

not carried at fair

value as of June 30, 2024 and December 31, 2023 (in

value as of September 30, 2024 and December 31, 2023

(in thousands):

Fair Value Hierarchy

June 30, 2024:

September 30, 2024:

Financial Assets:

44 unchanged sentences

formerly held

Shareholders was

converted into

8 unchanged sentences

and restrictions,

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q2 2024 Form 10-Q

held in the Bank,

5 unchanged sentences

stock as they previously owned of the Bank’s common

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q3 2024 Form 10-Q

During the first quarter 2024, the Company issued

27 unchanged sentences

existing cash and cash equivalents or future cash flow.

During the three months

ended June 30, 2024, the

Company repurchased

shares of Class A common stock at

September 30,

approximately

thousand, including transaction costs.

These repurchases were made pursuant to the Company’s publicly announced

repurchase programs.

As of June 30, 2024,

shares remained authorized for repurchase under the Company’s two

stock repurchase

Company repurchased

common stock at a

weighted average price per

The aggregate purchase

price for these transactions

was approximately $

thousand, including transaction costs.

Shares of the Company’s Class A common stock issued and outstanding as of June

30, 2024 and December 31, 2023

publicly announced repurchase programs.

As of September 30, 2024,

shares remained authorized for repurchase

under the Company’s

two stock repurchase

the nine months

ended September 30,

2023, the Company

Class A common

purchase price for these transactions was approximately $

million, including transaction costs.

repurchases in new share repurchase programs.

Shares of the Company’s Class A common stock issued and outstanding as

of September 30, 2024 and December 31,

, respectively.

11, Subsequent Events, for

information regarding issuance

Declaration of dividends

24 unchanged sentences

such payment to be an unsafe or unsound practice.

shareholders in

negative retained

addition, under

applicable FDIC

regulations and

prior approval

dividend or other capital distribution.

On January 29, 2024, the

18 unchanged sentences

The aggregate

distribution on connection with the second quarter dividend

dividends were

the stockholders

See Note 11, Subsequent

Events, for information regarding dividends declared in July 2024.

The following table details the dividends declared and paid by

the Company during the three months and six months

ended June 30, 2024:

distribution on connection with

the second quarter dividend

The quarterly dividend

for the third quarter

per share of Class

A common stock, paid on

September 5, 2024, to

stockholders of record as of

the close of business

on August 15, 2024.

The aggregate distribution on connection with

the second quarter dividend was $

USCB FINANCIAL HOLDINGS, INC.

2 unchanged sentences

Q3 2024 Form 10-Q

September 30, 2023.

See Note 11, Subsequent

Events, for information regarding dividends declared in October

The following table details the dividends declared and paid by

the Company during the three months and nine months

ended September 30, 2024:

Declaration Date

5 unchanged sentences

April 22, 2024

July 22, 2024

August 15, 2024

September 5, 2024

“well-capitalized”

guidelines as

June 30, 2024, the

total risk-based

capital ratios for

and the Bank were

%, respectively.

guidelines as of September 30, 2024 and December 31,

At September 30, 2024, the total

risk-based capital ratios for

EARNINGS PER SHARE

19 unchanged sentences

of diluted EPS when their effect is dilutive.

The following table

reflects the calculation of

net income available to

common shareholders for the

three and six months

ended June 30, 2024 and 2023 (in thousands):

Three Months Ended June 30,

Six Months Ended

months ended September 30, 2024 and 2023 (in thousands):

Three Months Ended

September 30,

Nine Months Ended

September 30,

Net income available to common shareholders

The following table reflects

the calculation of basic

and diluted earnings per

common share class

for the three

months ended June 30, 2024 and 2023 (in thousands,

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q3 2024 Form 10-Q

The following table reflects the calculation of basic and diluted earnings per common share class for the three and nine

months ended September 30, 2024 and 2023 (in thousands,

except per share amounts):

Three Months Ended June 30,

Three Months Ended September 30,

Net income available to common shares

16 unchanged sentences

for each of the periods presented.

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q2 2024 Form 10-Q

Six Months Ended June 30,

Nine Months Ended September 30,

Net income available to common shares

9 unchanged sentences

Net income has not been allocated to unvested

restricted stock awards that are participating

securities because the amounts that would be allocated

restricted stock awards that are participating securities

because the amounts that would be allocated are

not material to net income per share of common

3 unchanged sentences

for each of the periods presented.

USCB FINANCIAL HOLDINGS, INC.

Notes to the Consolidated Financial Statements - Unaudited

USCB Financial Holdings, Inc.

Q3 2024 Form 10-Q

LOSS CONTINGENCIES

6 unchanged sentences

in the aggregate,

adverse effect

is expected to

material adverse

on the Company’s Consolidated Financial Statements.

SUBSEQUENT EVENTS

announced that

third quarterly

cash dividend.

quarterly dividend for the

third quarter of 2024

Class A common

stock and will

be paid on September

5, 2024, to stockholders of record as of the close of business

on August 15, 2024.

October 2024,

restricted stock awards pursuant to the Company’s

2015 equity incentive plan.

Shares of the

Company’s Class A common

stock issued and outstanding as of October 31, 2024

On October 28,

2024, the Company

announced that its

Board of Directors

declared its fourth

quarterly cash

The quarterly

December 5, 2024, to stockholders of record as of the close

of business on November 15, 2024.

USCB Financial Holdings, Inc.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements