USCB Financial Holdings Q4 net income falls

Overview

• Community bank's Q4 net income fell due to portfolio restructuring and tax liabilities

• Operating EPS for Q4 was consistent with the prior quarter

• Net interest income rose 14.7% yr/yr in Q4

Outlook

• USCB aims for enhanced profitability in 2026 through portfolio restructuring

• USCB focuses on balance sheet management and client relationships for stable performance

Result Drivers

• PORTFOLIO RESTRUCTURING - USCB executed a portfolio restructuring strategy, selling $44.6 mln of lower-yielding securities for an after-tax loss, reinvesting proceeds into loans

• TAX LIABILITY IMPACT - Q4 results included a tax liability expense from prior periods, affecting diluted EPS by ($0.06)

• NON-INTEREST INCOME DECLINE - Non-interest income was negative due to a $7.5 mln pre-tax loss on securities sale

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for USCB Financial Holdings Inc is $21.00, about 3% above its January 21 closing price of $20.38

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX1fbJkl

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