Oct 23, 2026 earnings call — Record quarterly earnings and deposit expansion
USCB reported record quarterly net income of $9.5 million and guided Q4 net interest margin to about 3.40%.
Revenue $0.0B (est $0.0B) · EPS $0.51 (est $0.56)
Key quotes
"We delivered record quarterly earnings and continue to build on the momentum we have established over the past several years."
"Non-performing loans increased to $7.7 million, or 33 basis points of total loans, compared with $2.1 million, or nine basis points at the end of the prior quarter."
"This month, we expanded our deposit-gathering capabilities with the addition of a seasoned team of four deposit-focused bankers from a national competitor who collectively managed more than $700 million in deposits."
Analyst Q&A 3
Loan yields, margins and loan growth outlook
Q (Hannah Wynn · KBW): Analyst asked about underlying loan yields excluding fees and where loan yields are headed. She also asked about the loan pipeline into Q4 and expectations for loan growth for the full year and 2027.
A: Management said new loan production (excluding correspondent loans) came in at 6.29%. They noted a little over $100 million in correspondent banking loans (180 days, tied to SOFR) and about $610 million of loans repricing at a weighted average yield of 6.37%, which would reprice quickly with rate increases. They guided the margin to the 3.40% level and said the Q4 pipeline is strong, and they expect high single to low double-digit loan growth, cautious near term but sticking with that range into 2027.
"So we are going to guide to the 3.40% level on the margin, but we would like to see some upside since we came in at the lower end of our range this past quarter." — Rob Anderson (CFO)
Loan payoffs, margin sensitivity and expense growth
Q (Feddie Strickland · Hovde Group): Analyst asked whether lower payoffs this quarter were planned amortization or early payoffs and if lower payoffs factor into future assumptions. He also asked how margins might behave if there are hikes late 2026/early 2027 and what to expect for expense growth in 2027.
A: They said payoffs were lower this quarter versus Q2 (Q2 amortization about $189 million, this quarter $155 million) and they have over $100 million maturing in Q4, much of it correspondent, so they expect similar payoff levels in Q4 (last year Q4 was $137 million). On margins they said they are slightly liability sensitive to neutral, have over $600 million repricing, will push relationship deposits and can pay down over $120 million of wholesale funding, and they again guided to the 340 level. For expenses they said mid to high single digits growth is reasonable for 2027, they will hire opportunistically, and they remain targeted to the low 50s efficiency ratio and below 2% expense-to-assets.
"But I would still guide to the 340 level, and we'll see how that shakes out in the fourth quarter." — Rob Anderson (CFO)
Why quarter was weaker than expected
Q (Stephen Scouten · Piper Sandler): Analyst asked what was misinterpreted or what worsened since last quarter that led to slightly worse quarter-over-quarter performance and the disconnect with expectations.
A: Management said the quarter was affected by elevated payoffs after a strong Q2 and by seasonal Q3 weakness. They also pointed to disappointing non-interest income driven by transactional items—swap activity was negligible in Q2 and Q3 (Q1 swap activity was $1.4 million)—and some missed SBA execution, while expenses rose with opportunistic hires and the provision stayed flat due to no loan growth.
"On the non-interest income, certainly I mentioned that we're a little bit disappointed in that activity, but it's really some transactional pieces." — Rob Anderson (CFO)