USCB Financial Holdings had a successful quarter in 2025, with net income up 29% over the prior year, reaching $8.9 million or $0.45 per diluted share. Return on average assets was 1.27%, and return on average equity was 15.74%. The company completed a $40 million subordinated debt issuance and repurchased 2 million shares at an average price of $17.19 per share. Loan yields decreased slightly due to the payoff of consumer yacht loans. The loan book increased $19 million, and new loan production had a weighted average coupon of 6.43%, higher than the portfolio’s average yield.

The company’s margin was at 3.14% for the quarter, with a slight retreat due to excess cash and increased funding costs. Despite this, they expect improvement in the NIM with excess cash being put to work in loans and securities. The company issued $100 million of brokered CDs, which will be renewed at market rates over the next two years. Deposit costs remained stable at 3.29%, with a slight increase in total deposit costs due to a shift in deposit mix. Loan growth metrics were within guidance, with average loans growing by $41.6 million on a linked quarter basis.

USCB Financial Holdings remains well-capitalized, with total risk-based capital ratios above regulatory minimums. The company is optimistic about deposit growth and is executing its business plan to support sustainable growth. They anticipate improvement in their funding base in the fourth quarter as liabilities reprice with rate cuts. The company’s securities portfolio is reflective of the COVID era, yielding 3.03%, and provides significant optionality for future investments or funding sources. Overall, the company’s strong performance reflects the strength of its business model and commitment to long-term value delivery.

Read more at Yahoo Finance: USCB Financial Q3 2025 Earnings Call Transcript