USCB's Post-IPO Record Profit Meets NPL Spike

The Tip Desk · November 8, 2026 · 3 min read

Net interest income before provision was $24.3 million as the Miami community bank posted $9.5 million of net income, or $0.51 a share.

USCB Financial Holdings, Inc. (USCB), the holding company for U.S. Century Bank, reported net income of $9.5 million, or $0.51 a fully diluted share, for the three months ended September 30, 2026, compared with $8.9 million, or $0.45 a share, a year earlier.

Chairman, President and CEO Luis de la Aguilera said the result was the highest quarterly net income since the 2021 initial public offering. Net income of $28.0 million for the first nine months of 2026 had already surpassed full-year net income for every year since the IPO, he said. Annualized return on average assets was 1.27% and return on average equity was 16.03%.

Net interest income before provision for credit losses was $24.3 million, up 14.2% from $21.3 million a year earlier. The net interest margin expanded 23 basis points year over year to 3.37%. Period-end loans held for investment were $2.32 billion, up 9.0% from $2.13 billion a year earlier. Total assets were $3.0 billion.

The margin, however, reversed a second-quarter expansion. Net interest margin compressed 12 bps from 3.49% in the quarter ended June 30, 2026, after having expanded 22 bps from 3.27% in the first quarter. Net interest income before provision was $24.3 million, down $0.1 million from $24.4 million in the prior quarter. Average loans held for investment were $2.31 billion, up $50.1 million from $2.26 billion in the prior quarter.

Average loan yield was 6.11%, down 9 bps from 6.20% in the prior quarter. Average deposit cost, including non-interest-bearing mix, was 2.19%. Average non-interest-bearing demand deposits were $610.3 million, down $21.9 million from $632.2 million in the prior quarter. Average FHLB advances were $121.1 million. Period-end FHLB advances were $232.0 million.

Period-end total deposits were $2.45 billion, down $5.9 million from $2.45 billion at June 30, 2026. Average total deposits were $2.51 billion.

Non-interest income was $2.7 million, down 27.5% from $3.7 million a year earlier. Service fees were $1.5 million. Non-interest expense was $14.7 million, up 12.9% from $13.0 million a year earlier. Salaries and employee benefits were $9.3 million. The efficiency ratio was 54.62%, up 465 bps from 49.97% in the prior quarter.

Credit quality deteriorated. Non-performing loans were $7.7 million, up $5.5 million from $2.1 million at June 30, 2026. Non-performing loans to total loans were 0.33%, up 24 bps from 0.09% in the prior quarter. The provision for credit losses was $53 thousand, down $1.2 million from $1.3 million in the prior quarter. Net charge-offs were $23 thousand. The allowance for credit losses was $27.0 million, or 1.16% of total loans.

Common equity tier 1 capital was 11.23% and total risk-based capital was 14.07% at September 30, 2026. The Bank’s total risk-based capital ratio was 13.93%. Tangible book value per common share was $12.42, up 7.6% from $11.55 a year earlier. Accumulated other comprehensive loss of $43.3 million reduced tangible book value by $2.35 a share, primarily from market-value changes in available-for-sale securities.

On October 19, 2026, the board declared a quarterly cash dividend of $0.125 a share of Class A common stock, payable December 4, 2026.