[Management View]
USCB Financial reported a net income of $8.9 million for Q3 2025, a 29% increase from Q3 2024, driven by operating leverage and balance sheet growth. The company achieved a record EPS of $0.45 per diluted share, marking the third consecutive quarterly record. Key strategic priorities include disciplined expense management, expansion of deposit-focused verticals, and leveraging a $40 million subordinated debt issuance for share repurchase and capital deployment.

[Outlook]
USCB Financial anticipates continued loan momentum into Q4 2025, supported by a strong pipeline and strategic investments in business verticals. The company expects to benefit from a declining rate environment through proactive rate reductions and asset-liability management strategies. The association banking vertical is projected to potentially double its business in the next 18 months due to Florida condominium recertification cycles.

[Financial Performance]
The company reported a YoY increase in net interest margin to 3.14% and a 10.5% YoY growth in total assets. Total deposits grew by 15.5% YoY, with significant contributions from association banking, private client group, and correspondent banking. Non-performing loans decreased to 0.06% of the loan portfolio, reflecting strong credit quality.

[Q&A Highlights]
Question 1: Could you quantify the yacht payoffs and their timing in the quarter?
Answer: The yacht payoffs totaled over $10 million and occurred in August, impacting loan yields and margins for that month.

Question 2: Is the strong loan production in September indicative of sustained momentum into Q4?
Answer: Yes, September was a record-setting month, and the pipeline suggests continued strong loan momentum into Q4.

Question 3: How is competition affecting loan pricing, and what are the current yield trends?
Answer: The market is competitive, but USCB prices based on relationships rather than transactions. New loan production yields are around 6.43%, above the portfolio average.

Question 4: What is the outlook for the net interest margin (NIM) given the current rate environment?
Answer: The NIM is expected to improve, with a September rate of 3.27% as a good starting point for Q4. Proactive rate cuts and securities portfolio adjustments are anticipated to enhance margins.

Question 5: What is the growth potential for the condo association banking business line?
Answer: The association banking vertical is expected to double its business in the next 18 months, driven by Florida's condominium recertification cycles.

[Sentiment Analysis]
Analysts expressed interest in the company's strategic initiatives and growth potential, particularly in the association banking vertical. Management conveyed confidence in sustaining momentum and leveraging the current economic environment to enhance profitability.

[Quarterly Comparison]
| Key Metrics | Q3 2025 | Q3 2024 |
|------------------------------|---------|---------|
| Net Income | $8.9M | $6.9M |
| EPS | $0.45 | $0.35 |
| Return on Average Assets | 1.27% | 1.11% |
| Return on Average Equity | 15.74% | 13.38% |
| Net Interest Margin | 3.14% | 3.03% |
| Total Assets | $2.8B | - |
| Total Deposits | $2.5B | - |
| Non-Performing Loans | 0.06% | 0.14% |

[Risks and Concerns]
Potential risks include competitive pressures on loan pricing and the impact of interest rate fluctuations on margins. The company is actively managing these risks through strategic pricing and asset-liability management.

[Final Takeaway]
USCB Financial's Q3 2025 performance underscores its strategic focus on disciplined growth and capital management. The company's proactive approach to managing interest rate risks and expanding its business verticals positions it well for continued success. With a strong pipeline and favorable economic conditions in Florida, USCB is poised to sustain its growth trajectory into 2026.