USCB Financial 8K Reports Second Quarter 2022 Results | USCB 28 Jul 22

Exhibit 99.1

EARNINGS RELEASE

USCB Financial Holdings, Inc. Reports Second Quarter 2022 Results

MIAMI –

July 28,

2022 –

USCB Financial

Holdings, Inc.

(the “Company”)

(NASDAQ:

USCB)

, the

holding company

for U.S.

Century Bank, reported net income of $5.3 million or $0.26 per diluted share 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.

On December

21, 2021,

the Company

agreed to

exchange all

the outstanding

shares of

Class B

common

stock for

Class

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

for each 5 shares of Class B common stock. As of December 31, 2021,

the

Company’s only class of securities issued

and outstanding was Class A common stock.

“Second quarter results demonstrated

continued solid performance by our USCB team members.

Total assets exceeded

$2.0 billion for

the first time,

loans grew

19.9% from June

30, 2021,

our net interest

margin expanded

to 3.37%, operating

expenses remained in

line

with an efficiency ratio of 55.34%, and credit quality remains pristine. We are pleased with our profitability metrics and believe we will

be able

to continue

to successfully

execute on

our strategy

that delivers

improved performance

in the

years to

come.” said

Luis de

Aguilera, President and Chief Executive Officer.

Unless

otherwise

stated,

all

percentage

comparisons

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.

Profitability

•

Annualized return on

average assets for the

quarter ended June 30,

2022 was 1.08%

compared to 0.98%

for the second

quarter of

2021.

•

Annualized

return on

average stockholders’

equity for

the quarter

ended June

30, 2022

was 11.38

compared to

9.74% for

the

second quarter of 2021.

•

The efficiency ratio for the quarter

ended June 30, 2022 was 55.34%

an improvement as compared to

62.00% for the second quarter

of 2021.

•

Net interest margin increased to 3.37% for the quarter ended June

30, 2022 compared to 3.14% for the second quarter of 2021.

•

Net

interest

income

before

provision

for

credit

losses

was

$15.6 million

for

the

quarter

ended

June 30,

2022,

increase

$3.2 million or

25.4% compared to

the second

quarter of 2021.

The increase was

primarily driven

by higher

loan and investment

securities income.

Balance Sheet

•

Total assets were $2.0

billion at June 30, 2022, representing an increase of $349.1 million or

20.9% from June 30, 2021.

•

Total loans were

$1.4 billion at June 30, 2022, representing an increase of $227.6 million or 19.9%

from June 30, 2021.

•

Total deposits were $1.7

billion at June 30, 2022, representing an increase of $299.9 million or 20.8%

from June 30, 2021.

•

Total

stockholders’ equity

was $180.1 million

at June 30,

2022, representing

an increase

of $13.8

million or

8.3% from

June 30,

2021.

Asset Quality

•

The allowance for credit losses increased by $938 thousand to $15.8

million at June 30, 2022 from $14.9 million at June 30, 2021.

•

The allowance for credit losses represented 1.15% of total loans at June 30, 2022

compared to 1.30% at June 30, 2021.

•

Non-performing loans to total loans was 0.00% at June 30, 2022 and

2021.

Non-interest Income and Non-interest Expense

•

Non-interest income was

$1.6 million for

the three months

ended June 30, 2022,

an increase of

$101 thousand or 6.7%

compared

to the same period in 2021.

•

Non-interest expense

was $9.6 million

for the three

months ended June 30,

2022 compared to

$8.7 million for

the same period

2021,

an increase of

$877 thousand or

10.1%. The increase

was primarily

driven by higher

salaries and employee

benefits due to

new hires and salary compensation.

Capital

•

The Company and its wholly owned subsidiary, U.S. Century

Bank (the “Bank”), exceeded all regulatory capital requirements and

remained significantly above “well-capitalized” guidelines. As

of June 30, 2022,

total risk-based capital ratios for

the Company and

the Bank were 13.74% and 13.67%, respectively.

Conference Call and Webcast

The

Company

will host

conference

call

Friday,

July

29,

2022,

9:00

a.m. Eastern

Time

discuss

the

Company’s

unaudited

financial

results

for

the

quarter

ended

June 30,

2022.

access

the

conference

call,

dial

(866)

374-5140

(U.S.

toll-free)

and

use

conference code 31578788.

Additionally,

interested

parties can

listen to

a live

webcast

of the

call in

the “Investor

Relations” section

of the

Company’s

website

at www.uscentury.com

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

the live call has ended.

About USCB Financial Holdings, Inc.

USCB Financial Holdings, Inc.

is the bank holding company for

U.S. Century Bank. Established in 2002,

U.S. Century Bank is one of

the largest community banks headquartered in

Miami, and one of

the largest community banks in

the state of Florida. U.S.

Century Bank

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

financial

products

and

services

and

supports

numerous

community

organizations,

including

the

Greater

Miami

Chamber

Commerce, the South

Florida Hispanic Chamber

of Commerce, and

ChamberSouth. For more

information or to

find a banking

center

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

Forward-Looking Statements

This earnings

release may contain

statements that are

not historical in

nature and are

intended to be,

and are hereby

identified as,

forward-

looking statements for

purposes of the safe

harbor provided by

Section 21E of

the Securities Exchange

Act of 1934,

as amended. The

words “may,”

“will,” “anticipate,” “should,”

“would,” “believe,”

“contemplate,” “expect,”

“aim,” “plan,”

“estimate,” “continue,”

and

“intend,”

well

other

similar

words

and

expressions

the

future,

are

intended

identify

forward-looking

statements.

These

forward-looking

statements

include

statements

our

projected

growth,

anticipated

future

financial

performance,

and

management’s long-term performance goals, as

well as

statements relating to

the anticipated effects

on results of

operations and financial

condition from expected developments or events, or business and

growth strategies, including anticipated internal growth.

These forward-looking statements involve significant risks and uncertainties that could cause our actual results

to differ materially from

those anticipated in such statements. Potential risks and uncertainties include,

but are not limited to:

•

the strength of the United States economy in general and the strength of the local economies in

which we conduct operations;

•

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

the ultimate extent of the 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

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 earnings release and other filings we make with the

Securities and Exchange Commission (“SEC”).

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not

differ materially from

expectations. Therefore, you

are cautioned not

to place undue

reliance on any

forward-looking statements. Further,

forward-looking

statements included

in this

earnings release

are made

only as

of the

date hereof,

and we

undertake no

obligation

update or

revise any

forward-looking statement

to reflect

events or

circumstances after

the date

on which

the statement

is made

or to

reflect the occurrence of unanticipated events, unless required to

do so under the federal securities

laws. You should also review the risk

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

company reorganization in December 2021, the Bank

filed with the FDIC.

Non-GAAP Financial Measures

This earnings

release includes financial

information determined by

methods other than

in accordance with

generally accepted accounting

principles (“GAAP”). This financial

information includes certain

operating performance measures. Management

has included these

non-

GAAP

measures

because

believes

these

measures

may

provide

useful

supplemental

information

for

evaluating

the

Company’s

underlying

performance

trends. Further,

management

uses these

measures

in managing

and

evaluating

the

Company’s

business

and

intends to

refer to

them in

discussions about

our operations

and performance.

Operating performance

measures should

be viewed

addition

to,

and

not

alternative

substitute

for,

measures

determined

accordance

with

GAAP,

and

are

not

necessarily

comparable

to non-GAAP measures that

may be presented

by other companies.

the extent applicable,

reconciliations of these

non-

GAAP measures to the most directly

comparable GAAP measures can be

found in the ‘Non-GAAP Reconciliation

Tables’ included

the exhibits

to this earnings release.

You

should assume that all numbers are unaudited unless otherwise noted.

Contacts:

Investor Relations

InvestorRelations@uscentury.com

Media Relations

Martha Guerra-Kattou

MGuerra@uscentury.com

USCB FINANCIAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS

OF INCOME (UNAUDITED)

(Dollars in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2022

2021

Interest income:

Loans, including fees

14,053

11,538

27,035

23,406

Investment securities

2,510

1,968

4,839

3,812

Interest-bearing deposits in financial institutions

121

152

Total interest income

16,684

13,529

32,026

27,257

Interest expense:

Interest-bearing deposits

Savings and money markets accounts

615

523

1,166

1,071

Time deposits

271

379

530

933

Federal Home Loan Bank advances

139

138

276

275

Total interest expense

1,042

1,055

2,005

2,308

Net interest income before provision for credit losses

15,642

12,474

30,021

24,949

Provision for credit losses

705

(160)

Net interest income after provision for credit losses

14,937

12,474

29,316

25,109

Non-interest income:

Service fees

1,083

903

1,983

1,792

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

(3)

187

249

Gain on sale of loans held for sale, net

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

Non-interest expense:

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 expense

1,315

1,150

2,665

2,291

Total non-interest expense

9,551

8,674

19,163

17,351

Net income before income tax expense

7,003

5,316

13,715

11,595

Income tax expense

1,708

1,263

3,566

2,761

Net income

5,295

4,053

10,149

8,834

Preferred stock dividend

754

1,535

Net income available to common stockholders

5,295

3,299

10,149

7,299

Allocation of net income per common stock class:

(1)

Class A

5,295

2,509

10,149

5,551

Class B

790

1,747

Per share information:

(1)

Class A common stock

(2)

Net income per share, basic

0.26

0.65

0.51

1.43

Net income per share, diluted

0.26

0.64

0.50

1.41

Class B common stock

Net income per share, basic

0.13

0.29

Net income per share, diluted

0.13

0.29

Weighted average shares outstanding:

Class A common stock

(2)

Basic

20,000,753

3,889,469

19,997,869

3,889,469

Diluted

20,171,261

3,933,636

20,192,918

3,933,636

Class B common stock

Basic

6,121,052

Diluted

6,121,052

(1)

For the three and six months ended June 30, 2021,

the allocation of net income available to common stockholders

was based on the weighted average shares

outstanding per common share class to the total weighted

average shares outstanding during the period. The income allocation

is calculated using the weighted average

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

basis (20% per share equivalent to Class A common

stock).

(2)

For the three and six months ended June 30, 2021,

the common stock outstanding, weighted average shares

and net income per share for the Class A common stock

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

that occurred in June 2021.

USCB FINANCIAL HOLDINGS, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands, except per share data)

As of or For the Three Months Ended

6/30/2022

3/31/2022

12/31/2021

9/30/2021

6/30/2021

Income statement data:

Net interest income

15,642

14,379

14,076

13,471

12,474

Provision for credit losses

705

Net interest income after provision for credit losses

14,937

14,379

14,076

13,471

12,474

Service fees

1,083

900

961

856

903

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

(3)

(70)

187

Gain on sale of loans held for sale, net

334

107

532

Gain on sale of other assets

983

Loan settlement

161

2,500

Other income

515

529

558

399

403

Total non-interest income

1,617

1,945

2,644

4,217

1,516

Salaries and employee benefits

5,913

5,875

5,634

5,313

5,213

Occupancy

1,251

1,270

1,267

1,192

1,411

Regulatory assessment and fees

226

213

317

195

Consulting and legal fees

398

517

539

357

373

Network and information technology services

448

387

268

358

332

Other operating expense

1,315

1,350

1,518

1,470

1,150

Total non-interest expenses

9,551

9,612

9,319

9,007

8,674

Net income before income tax expense

7,003

6,712

7,401

8,681

5,316

Income tax expense

1,708

1,858

1,751

2,088

1,263

Net income

5,295

4,854

5,650

6,593

4,053

Preferred stock dividend

542

754

Exchange and redemption of preferred shares

89,585

Net income (loss) available to common stockholders

5,295

4,854

5,650

(83,534)

3,299

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

(1)

Class A

5,295

4,854

5,650

(77,278)

2,509

Class B

(6,256)

790

Per share information:

Class A common stock

(2)

Net income (loss) per share, basic

0.26

0.24

0.30

(5.11)

0.65

Net income (loss) per share, diluted

0.26

0.24

0.30

(5.11)

0.64

Class B common stock

Net income (loss) per share, basic

(1.02)

0.13

Net income (loss) per share, diluted

(1.02)

0.13

Balance sheet data (at period-end):

Cash and cash equivalents

83,272

94,113

46,228

69,597

47,117

Securities available-for-sale

339,464

392,214

401,542

328,171

395,804

Securities held-to-maturity

116,671

122,361

122,658

99,866

Total securities

456,135

514,575

524,200

428,037

395,804

Loans held for investment

(3)

1,372,733

1,258,388

1,190,081

1,176,412

1,145,095

Allowance for credit losses

(15,786)

(15,074)

(15,057)

(14,900)

(14,848)

Total assets

2,016,086

1,967,252

1,853,939

1,755,011

1,667,005

Non-interest-bearing deposits

653,708

656,622

605,425

570,091

555,993

Interest-bearing deposits

1,085,012

1,056,672

984,954

914,498

882,783

Total deposits

1,738,720

1,713,294

1,590,379

1,484,589

1,438,776

Federal Home Loan Bank advances and other borrowings

66,000

36,000

Total liabilities

1,836,018

1,775,213

1,650,042

1,553,093

1,500,703

Total stockholders' equity

180,068

192,039

203,897

201,918

166,302

Capital ratios:

(4)

Leverage ratio

9.43%

9.47%

9.55%

9.69%

7.91%

Common equity tier 1 capital

12.65%

13.35%

13.70%

13.85%

9.24%

Tier 1 risk-based capital

12.65%

13.35%

13.70%

13.85%

11.44%

Total risk-based capital

13.74%

14.49%

14.92%

15.10%

12.69%

(1)

The allocation of net income (loss) available to common

stockholders was based on the weighted average

shares outstanding per common share class to the total

weighted average shares outstanding during each period. The

income (loss) allocation is calculated using the weighted average

shares outstanding of Class B common

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

Class A common stock).

(2)

The quarter ended June 30, 2021 was adjusted for the

1 for 5 reverse stock split.

(3)

Loan amounts include deferred fees/costs.

(4)

The Company was formed during the quarter ended

December 31, 2021. As such, the capital ratios for Q2

2022, Q1 2022 and Q4 2021 are for the Company and for

Q3 2021 and prior are for the Bank. The Company, as a small bank holding company, is not subject to regulatory

capital requirements.

USCB FINANCIAL HOLDINGS, INC.

AVERAGE BALANCES, RATIOS, AND OTHER (UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

6/30/2022

3/31/2022

12/31/2021

9/30/2021

6/30/2021

Average balance sheet data:

Cash and cash equivalents

80,254

99,911

87,819

116,622

108,028

Securities available-for-sale

370,933

385,748

374,589

346,407

382,990

Securities held-to-maturity

120,130

122,381

114,108

51,238

Total securities

491,063

508,129

488,697

397,645

382,990

Loans held for investment

(1)

1,296,476

1,211,432

1,158,755

1,144,275

1,088,492

Total assets

1,968,381

1,913,484

1,828,037

1,741,423

1,660,060

Interest-bearing deposits

1,071,709

1,023,844

958,241

912,330

896,271

Non-interest-bearing deposits

644,975

626,400

603,735

564,928

535,894

Total deposits

1,716,684

1,650,244

1,561,976

1,477,258

1,432,165

Federal Home Loan Bank advances and other borrowings

36,330

36,011

36,000

Total liabilities

1,781,784

1,711,624

1,625,675

1,546,414

1,493,129

Total stockholders' equity

186,597

201,860

202,362

195,009

166,931

Performance ratios:

Return on average assets

(2)

1.08%

1.03%

1.23%

1.50%

0.98%

Return on average equity

(2)

11.38%

9.75%

11.08%

13.41%

9.74%

Net interest margin

(2)

3.37%

3.22%

3.19%

3.14%

Non-interest income to average assets

(2)

0.33%

0.41%

0.57%

0.96%

0.37%

Efficiency ratio

(3)

55.34%

58.88%

55.74%

50.92%

62.00%

Loans by type (at period end):

(4)

Residential real estate

203,662

204,317

201,359

201,124

213,575

Commercial real estate

843,445

782,072

704,988

693,469

673,944

Commercial and industrial

131,271

134,832

146,592

137,486

155,440

Foreign banks

84,770

63,985

59,491

58,839

62,042

Consumer and other

109,250

73,765

79,229

87,515

43,979

Asset quality data:

Allowance for credit losses to total loans

1.15%

1.20%

1.27%

1.30%

Allowance for credit losses to non-performing loans

- %

1,265%

82,778%

74,240%

Non-accrual loans less non-accrual TDRs

1,190

Non-accrual TDRs

Loans- over 90 days past due and accruing

Total non-performing loans

(5)

1,190

Non-performing loans to total loans

- %

0.10%

0.00%

Non-performing assets to total assets

- %

0.06%

0.00%

Net charge-offs (recoveries of) to average loans

(2)

(0.00)%

(0.01)%

(0.05)%

(0.02)%

0.06%

Net charge-offs (recovery of) credit losses

(7)

(17)

(157)

(51)

160

Interest rates and yields:

(2)

Loans

4.35%

4.32%

4.29%

4.19%

Investment securities

2.04%

1.85%

1.81%

1.86%

2.04%

Total interest-earning assets

3.60%

3.43%

3.41%

3.43%

3.41%

Deposits

0.21%

0.20%

0.21%

0.22%

0.26%

Borrowings and repurchase agreements

1.53%

1.54%

1.51%

1.52%

Total interest-bearing liabilities

0.38%

0.37%

0.38%

0.40%

0.45%

Other information:

Full-time equivalent employees

192

190

187

184

183

(1)

Loan amounts include deferred fees/costs.

(2)

Annualized.

(3)

Efficiency ratio is defined as total non-interest expense divided

by sum of net interest income and total non-interest

income.

(4)

Loan amounts exclude deferred fees/costs.

(5)

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

assets are the same for the dates presented since there were

no impaired investments or other

real estate owned (OREO) recorded.

USCB FINANCIAL HOLDINGS, INC.

NET INTEREST MARGIN (UNAUDITED)

(Dollars in thousands)

Three Months Ended June 30,

2022

2021

Average

Balance

Interest

Yield/Rate

(1)

Average

Balance

Interest

Yield/Rate

(1)

Assets

Interest-earning assets:

Loans

(2)

1,296,476

14,053

4.35%

1,088,492

11,538

4.19%

Investment securities

(3)

493,352

2,510

2.04%

385,090

1,968

2.04%

Other interest-earnings assets

69,503

121

0.70%

101,134

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

0.10%

52,620

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

(4)

3.22%

2.96%

Net interest margin

(5)

3.37%

3.14%

(1)

Annualized.

(2)

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

of deferred loan fees, net of deferred loan costs.

(3)

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

stock.

(4)

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

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

(5)

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

interest-earning assets.

USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

6/30/2022

3/31/2022

12/31/2021

9/30/2021

6/30/2021

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

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 credit losses

705

PTPP income

7,708

6,712

7,401

8,681

5,316

PTPP return on average assets:

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

(1)

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)

(70)

187

Less: Tax effect on sale of securities

(5)

(9)

(46)

Operating net income

5,297

4,838

5,624

6,646

3,912

Operating PTPP Income:

PTPP income

7,708

6,712

7,401

8,681

5,316

Less: Net gains (losses) on sale of securities

(3)

(70)

187

Operating PTPP income

7,711

6,691

7,366

8,751

5,129

Operating PTPP return on average assets:

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

(1)

1.57%

1.42%

1.60%

1.99%

1.24%

Operating return on average assets:

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

(1)

1.08%

1.03%

1.22%

1.51%

0.95%

(1)

Annualized.

USCB FINANCIAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands, except per share data)

As of or For the Three Months Ended

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

19,991,753

18,767,541

3,889,469

Class B common shares

1,224,212

Total common shares issued and outstanding

20,000,753

19,991,753

5,113,681

Tangible book value per common share (non-GAAP)

(3)

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

Diluted

6,121,052

Diluted EPS:

(4) (5)

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 key indicators of the ongoing earnings power

of the Company.

(2)

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

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

preferred stock were converted into

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

initial public offering of its Class A common stock on July

27, 2021, in which it

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

the total shares issued and outstanding of Class A common stock

was 18,767,541 shares at September 30,

2021.

(3)

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

stock options.

(4)

During the quarter ended September 30, 2021, basic

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

as the inclusion of all potential common shares

outstanding would have been antidilutive.

(5)

During the quarter ended December 31, 2021, the Company

entered into agreements with the Class B common

shareholders to exchange all outstanding Class B

non-voting common stock for Class A voting common stock

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

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

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

quarters presented, the allocation of operating net income available

to common stockholders was based on

the weighted average shares outstanding per common share

class to the total weighted average shares outstanding

during each period. The operating net income

allocation was calculated using the weighted average shares

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

USCB Financial (USCB) 8-KUSCB Financial Holdings, Inc. Reports Second Quarter 2022 Results