U.S. Century Bank Reports Third Quarter 2021 Results

October 28, 2021 4:19 PM EDT

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MIAMI, Oct. 28, 2021 (GLOBE NEWSWIRE) -- U.S. Century Bank (the “Company” or the “Bank”) (NASDAQ: USCB) reported net income of $6.6 million for the three months ended September 30, 2021, compared with net income of $3.4 million for the same period in 2020. The Company reported net loss per diluted share for the three months ended September 30, 2021 of $5.11 and $1.02 for Class A and Class B common stock, respectively, compared to net income per diluted share for the same period in 2020 of $0.51 and $0.10 for Class A and Class B common stock, respectively. In the third quarter of 2021, the Company completed an exchange of then outstanding preferred shares for Class A common shares and thereafter redeemed the remaining outstanding preferred shares, at a liquidation value that exceeded book value, causing a one-time reduction in net income available to common stockholders of $89.6 million. Additionally, the reported net income of $6.6 million for the third quarter in 2021 includes a default interest recovery of $2.5 million ($0.11 EPS impact) from a prior lending customer of the Bank. The loan was originated in 2008 and subsequently went through many iterations of credit collection. This payment reflects the final payment and settlement of lien judgments against the customer.

Operating net income per diluted share (non-GAAP) for the three months ended September 30, 2021 was $0.37 and $0.07 for Class A and Class B common stock, respectively, compared to operating net income per diluted share (non-GAAP) for the same period in 2020 of $0.51 and $0.10 for Class A and Class B, respectively. Operating net income per diluted share (non-GAAP) in the third quarter of 2021 excludes the $89.6 million one-time accounting impact of the exchange and redemption of the preferred shares. A reconciliation of non-GAAP measures to GAAP measures appears at the end of this press release.

“I am extremely proud about the milestones that we have achieved in such a short amount of time despite the many and varied challenges of the COVID-19 pandemic. During the third quarter of 2021, we issued 4,600,000 shares of Class A common stock at a price of $10.00 per share through the completion of our initial public offering. We also managed to simplify our capital structure through the exchange and redemption of the remaining Class C and Class D preferred shares.” said Luis de la Aguilera, President and Chief Executive Officer.

Profitability

  • Annualized return on average assets for the quarter ended September 30, 2021 was 1.50% compared to 0.93% in the third quarter of 2020.

  • Annualized return on average stockholders’ equity for the quarter ended September 30, 2021 was 13.41% compared to 8.11% in the third quarter of 2020.

  • The efficiency ratio for the quarter ended September 30, 2021 decreased to 50.92% compared to 65.02% for the third quarter in 2020.

  • Net interest margin (NIM) increased to 3.19% for the quarter ended September 30, 2021 compared to 3.17% for the third quarter in 2020.

  • Net interest income was $13.5 million for the quarter ended September 30, 2021, an increase of $2.4 million or 21.21% compared to the third quarter in 2020. The increase was primarily driven by higher loan and investment income along with lower deposit costs.

Balance Sheet

  • Total assets were $1.8 billion at September 30, 2021, representing an increase of $264.0 million or 17.70% from the third quarter in 2020.

  • Total deposits were $1.5 billion at September 30, 2021, representing an increase of $232.0 million or 18.52%, from the third quarter in 2020.

  • Total shareholders’ equity was $201.9 million at September 30, 2021, representing an increase of $33.3 million or 19.77% from the third quarter in 2020.

  • Total loans were $1.2 billion at September 30, 2021, representing an increase of $134.3 million or 12.89% from the third quarter in 2020.

  • The Company purchased a portfolio of yacht loans within the quarter. The portfolio includes loans that are secured by 30 vessels with an aggregate principal balance of $48.0 million.

  • The Company classified $100 million of securities to held-to-maturity (HTM) for the quarter ended September 30, 2021 to protect tangible book value in a rising rate environment.

Asset Quality

  • The allowance for credit losses was $14.9 million at September 30, 2021, down from $15.2 million at September 30, 2020.

  • The allowance for credit losses represented 1.27% of total loans at September 30, 2021 compared to 1.46% at September 30, 2020.

  • Non-performing loans to total loans was less than 0.01% at September 30, 2021 compared to 0.16% at September 30, 2020.

Non-interest Income and Non-interest Expense

  • Non-interest income totaled $4.2 million for the three months ended September 30, 2021, representing an increase of $2.4 million or 137.63% compared to the same period in 2020. The increase was primarily driven by a $2.5 million in default interest from a prior lending customer of the Bank.

  • Non-interest expense was $9.0 million for the three months ended September 30, 2021 compared to $8.4 million for the same period in 2020.

Capital

  • The Company exceeded all regulatory capital requirements and remained significantly above “well-capitalized” guidelines. Total risk-based capital ratio was 15.10% at September 30, 2021 compared to 14.34% for the third quarter in 2020.

Conference Call and Webcast

U.S. Century Bank will host a conference call on Friday, October 29, 2021 at 9:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended September 30, 2021. To access the conference call, dial (844) 221-2148 (domestically) or (929) 517-0937 (internationally) and use conference code 9479777.

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 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. U.S. Century is rated 4-star by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services. U.S. Century Bank has received awards and accolades from numerous organizations for its philanthropic support and leadership, including the Beacon Council, Greater Miami Chamber of Commerce, South Florida Hispanic Chamber of Commerce and others. For more information or to find a U.S. Century branch near you, please call (305) 715-5200 or visit www.uscentury.com.

Forward-Looking Statements

Statements included in this earning release that are not historical in nature 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,” “may” and “intend,” as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include statements related to 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 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 of 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 forthcoming CECL implementation;
  • 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;
  • 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 pricing of our products and services as well as our margins;
  • 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 from time to time in our filings with the FDIC.

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 presentation are made only as of the date hereof, and we undertake no obligation to 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 we describe in the reports we will file from time to time with the FDIC.

Non-GAAP Financial Measures

This earning 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 it 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 in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To 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 in the exhibits to this earning release.

You should assume that all numbers are unaudited unless otherwise noted.

Contacts:

Investor Relations
InvestorRelations@uscentury.com

Media Relations
Martha Guerra-Kattou
(305) 715-5141
MGuerra@uscentury.com

U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED)
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
        
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2021 2020 2021 2020
Interest income:       
Loans, including fees$12,538  $11,819 $35,944  $35,528
Investment securities 1,858   1,274  5,670   3,756
Interest-bearing deposits in financial institutions 38   52  77   261
Total interest income 14,434   13,145  41,691   39,545
Interest expense:       
Interest-bearing deposits 16   38  45   128
Savings and money markets accounts 501   660  1,572   2,550
Time deposits 306   1,127  1,239   3,845
Federal Home Loan Bank advances 140   207  415   925
Total interest expense 963   2,032  3,271   7,448
Net interest income before provision for credit losses 13,471   11,113  38,420   32,097
Provision for (recovery of) credit losses -   -  (160)  3,250
Net interest income after provision for credit losses 13,471   11,113  38,580   28,847
Non-interest income:       
Service fees 856   777  2,648   2,236
Gain (loss) on sale of securities available for sale, net (70)  -  179   423
   Gain on sale of loans held for sale, net 532   612  1,519   840
   Other non-interest income 2,899   386  3,708   1,146
Total non-interest income 4,217   1,775  8,054   4,645
Non-interest expense:       
Salaries and employee benefits 5,313   4,907  15,804   14,769
Occupancy 1,192   1,419  3,990   4,254
Regulatory assessment and fees 317   179  690   520
Consulting and legal fees 357   342  915   771
Network and information technology services 358   407  1,198   1,156
Other operating 1,470   1,124  3,761   3,300
Total non-interest expense 9,007   8,378  26,358   24,770
Net income before income tax expense 8,681   4,510  20,276   8,722
Income tax expense 2,088   1,106  4,849   2,139
Net income 6,593   3,404  15,427   6,583
Preferred stock dividend 542   782  2,077   2,345
Exchange and redemption of preferred shares 89,585   -  89,585   -
Net income (loss) available to common stockholders$(83,534) $2,622 $(76,235) $4,238
Allocation of net income (loss) per common stock class: (1)       
Class A$(77,278) $1,994 $(65,747) $3,223
Class B$(6,256) $628 $(10,488) $1,015
Per share information:       
Class A common stock (2)       
Net income (loss) per share, basic$(5.11) $0.51 $(8.57) $0.83
Net income (loss) per share, diluted$(5.11) $0.51 $(8.57) $0.82
Class B common stock       
Net income (loss) per share, basic$(1.02) $0.10 $(1.71) $0.17
Net income (loss) per share, diluted$(1.02) $0.10 $(1.71) $0.17
Weighted average shares outstanding:       
Class A common stock (2)       
Basic 15,121,460   3,887,469  7,674,609   3,887,469
Diluted 15,121,460   3,944,455  7,674,609   3,944,455
Class B common stock       
Basic 6,121,052   6,121,052  6,121,052   6,121,052
Diluted 6,121,052   6,121,052  6,121,052   6,121,052
              
         
(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 a as-converted basis (20% per share equivalent to Class A common stock).
(2) For the three and nine months ended September 30, 2020, the common stock outstanding, weighted average shares and net income per share for the Class A common stock were adjusted to reflect the 1 for 5 reverse stock split that occurred in June of 2021.


U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED)
SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
          
 As of and for the three months ended
 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Income Statement Data:         
Net interest income$13,471  $12,474  $12,475  $11,499  $11,113 
Provision for (recovery of) credit losses -   -   (160)  -   - 
Net interest income after provision for credit losses 13,471   12,474   12,635   11,499   11,113 
Service fees 856   903   889   1,030   777 
Gain (loss) on sale of securities available for sale, net (70)  187   62   11   - 
Gain (loss) on sale of loans held for sale, net 532   23   964   (1)  612 
Other income 2,899   403   406   414   386 
Total non-interest income 4,217   1,516   2,321   1,454   1,775 
Salaries and employee benefits 5,313   5,213   5,278   4,435   4,907 
Occupancy 1,192   1,411   1,387   1,402   1,419 
Regulatory assessment and fees 317   195   178   171   179 
Consulting and legal fees 357   373   185   274   342 
Network and information technology services 358   332   508   380   407 
Other operating 1,470   1,150   1,141   1,603   1,124 
Total non-interest expenses 9,007   8,674   8,677   8,265   8,378 
Net income before income tax expense 8,681   5,316   6,279   4,688   4,510 
Income tax expense 2,088   1,263   1,498   449   1,106 
Net income 6,593   4,053   4,781   4,239   3,404 
Preferred stock dividend 542   754   781   782   782 
Exchange and redemption of preferred shares 89,585   -   -   -   - 
Net income (loss) available to common stockholders$(83,534) $3,299  $4,000  $3,457  $2,622 
Allocation of net income (loss) per common stock class: (1)        
Class A$(77,278) $2,509  $3,042  $2,629  $1,994 
Class B$(6,256) $790  $958  $828  $628 
Per share information:         
Class A common stock (2)         
Net income (loss) per share, basic$(5.11) $0.65  $0.78  $0.68  $0.51 
Net income (loss) per share, diluted$(5.11) $0.64  $0.78  $0.67  $0.51 
Class B common stock         
Net income (loss) per share, basic$(1.02) $0.13  $0.16  $0.14  $0.10 
Net income (loss) per share, diluted$(1.02) $0.13  $0.16  $0.14  $0.10 
Balance Sheet Data (at period end):         
Cash and cash equivalents$69,597  $47,117  $105,940  $47,734  $177,411 
Securities available-for-sale$328,171  $395,804  $341,344  $334,322  $189,507 
Securities held-to-maturity$99,866  $-  $-  $-  $- 
Loans held for investment (3)$1,176,412  $1,145,095  $1,103,981  $1,038,504  $1,042,106 
Allowance for credit losses$(14,900) $(14,848) $(15,009) $(15,086) $(15,207)
Total assets$1,755,011  $1,667,005  $1,633,359  $1,501,742  $1,491,036 
Non-interest-bearing deposits$570,091  $555,993  $516,550  $442,467  $416,564 
Interest-bearing deposits$914,498  $882,783  $887,681  $830,935  $836,058 
Federal Home Loan Bank advances and other borrowings$36,000  $36,000  $36,000  $36,000  $41,000 
Total liabilities$1,553,093  $1,500,703  $1,462,934  $1,330,741  $1,322,450 
Total stockholders' equity$201,918  $166,302  $170,425  $171,001  $168,586 
Capital ratios:         
Leverage ratio 9.69%  7.91%  8.57%  8.61%  8.73%
Common equity tier 1 capital 13.85%  9.24%  9.47%  9.71%  9.68%
Tier 1 risk-based capital 13.85%  11.44%  12.54%  12.99%  13.08%
Total risk-based capital 15.10%  12.69%  13.80%  14.24%  14.34%
          
(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 a as-converted basis (20% per share equivalent to Class A common stock).
(2) The quarters ended June 30, 2021 and prior were all adjusted for the 1 for 5 reverse stock split.
(3) Loan amounts include deferred fees/costs.         


U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED)
AVERAGE BALANCES, RATIOS, AND OTHER
(Dollars in thousands)
          
 As of and for the three months ended
 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Average balance sheet data:         
Cash and cash equivalents$116,622  $108,028  $86,157  $154,415  $159,230 
Securities available-for-sale$346,407  $382,990  $334,723  $251,294  $187,096 
Securities held-to-maturity$51,238  $-  $-  $-  $- 
Loans held for investment$1,144,275  $1,088,492  $1,071,782  $1,036,249  $1,032,264 
Total assets$1,741,423  $1,660,060  $1,573,881  $1,522,735  $1,460,732 
Interest-bearing deposits$912,330  $896,271  $861,300  $854,206  $813,031 
Total deposits$1,477,258  $1,432,165  $1,343,676  $1,291,427  $1,222,900 
Federal Home Loan Bank advances and other borrowings$36,000  $36,000  $36,000  $37,522  $43,935 
Total liabilities$1,546,414  $1,493,129  $1,402,305  $1,353,424  $1,293,905 
Total stockholders' equity$195,009  $166,931  $171,576  $169,311  $166,827 
Performance ratios:         
Return on average assets (1) 1.50%  0.98%  1.23%  1.11%  0.93%
Return on average equity (1) 13.41%  9.74%  11.30%  9.96%  8.11%
Net interest margin (1) 3.19%  3.14%  3.35%  3.14%  3.17%
Non-interest income to average assets (1) 0.96%  0.37%  0.60%  0.38%  0.48%
Efficiency ratio (2) 50.92%  62.00%  58.64%  63.81%  65.02%
Loans by type (at period end): (3)         
Residential real estate$201,124  $213,575  $231,554  $232,754  $247,620 
Commercial real estate$693,469  $673,944  $650,762  $606,425  $603,544 
Commercial and industrial$137,486  $155,440  $174,546  $157,330  $159,882 
Foreign banks$58,839  $62,042  $45,659  $38,999  $27,847 
Consumer and other$87,515  $43,979  $5,627  $5,507  $6,356 
Asset quality data:         
Allowance for credit losses to total loans 1.27%  1.30%  1.36%  1.45%  1.46%
Allowance for credit losses to non-performing loans 82778%  74240%  2214%  956%  930%
Non-accrual loans less non-accrual TDRs -   -   228   303   4 
Non-accrual TDRs 18   20   450   1,275   1,632 
Loans- over 90 days past due and accruing -   -   -   -   - 
Total non-performing loans (4) 18   20   678   1,578   1,636 
Non-performing loans to total loans 0.00%  0.00%  0.06%  0.15%  0.16%
Non-performing assets to total assets 0.00%  0.00%  0.04%  0.11%  0.11%
Net charge-offs (recoveries of) to average loans (1) -0.02%  0.06%  -0.03%  0.05%  0.04%
Net charge-offs (recovery of) credit losses (51)  160   (83)  121   116 
Interest rates and yields:         
Loans 4.29%  4.19%  4.43%  4.36%  4.48%
Investment securities 1.86%  2.04%  2.19%  2.35%  2.68%
Total interest-earning assets 3.43%  3.41%  3.69%  3.57%  3.75%
Deposits 0.22%  0.26%  0.34%  0.44%  0.59%
Borrowings and repurchase agreements 1.52%  1.52%  1.52%  1.55%  1.84%
Total interest-bearing liabilities 0.40%  0.45%  0.57%  0.71%  0.94%
Other information:         
Full-time equivalent employees 184   183   186   179   178 
          
(1) Annualized.
(2) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
(3) Loan amounts exclude deferred fees/costs.
(4) The amounts for total non-performing loans and total non-performing assets are the same for the periods presented since there were no impaired investments or other real estate owned (OREO) recorded.



U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED)
NET INTEREST INCOME
(Dollars in thousands)
            
 Three Months Ended September 30,
  2021   2020 
 Average
Balance
 Interest Yield/Rate (1) Average
Balance
 Interest Yield/Rate (1)
Assets           
Interest-earning assets:           
Loans (2)$1,144,275 $12,538 4.29% $1,032,264 $11,819 4.48%
Investment securities (3) 399,745  1,858 1.86%  190,144  1,274 2.68%
Other interest earnings assets 109,639  38 0.14%  151,721  52 0.14%
Total interest-earning assets 1,653,659  14,434 3.43%  1,374,129  13,145 3.75%
Non-interest earning assets 87,764      86,603    
Total assets$1,741,423     $1,460,732    
Liabilities and stockholders' equity           
Interest-bearing liabilities:           
Interest-bearing demand deposits$55,621  16 0.11% $47,905  38 0.31%
Saving and money market deposits 627,654  501 0.32%  483,754  660 0.54%
Time deposits 229,055  306 0.53%  281,372  1,127 1.59%
Total interest-bearing deposits 912,330  823 0.36%  813,031  1,825 0.89%
Borrowings and repurchase agreements 36,000  140 1.52%  43,935  207 1.84%
Total interest-bearing liabilities 948,330  963 0.40%  856,966  2,032 0.94%
Non-interest bearing demand deposits 564,928      409,869    
Other non-interest-bearing liabilities 33,156      27,070    
Total liabilities 1,546,414      1,293,905    
Stockholders' equity 195,009      166,827    
Total liabilities and stockholders' equity$1,741,423     $1,460,732    
Net interest income  $13,471     $11,113  
Net interest spread (4)    3.03%     2.81%
Net interest margin (5)    3.19%     3.17%
            
(1) Annualized.
(2) Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3) At fair value except for securities held to maturity.
(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.


U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED)
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
          
 As of and for the three months ended
 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Pre-Tax Pre-Provision ("PTPP") Income:         
Net income$6,593  $4,053  $4,781  $4,239  $3,404 
Plus: Provision for income taxes 2,088   1,263   1,498   449   1,106 
Plus: Provision for (recovery of) credit losses -   -   (160)  -   - 
PTPP income$8,681  $5,316  $6,119  $4,688  $4,510 
          
PTPP Return on Average Assets:         
PTPP income$8,681  $5,316  $6,119  $4,688  $4,510 
Average assets$1,741,423  $1,660,060  $1,573,881  $1,522,735  $1,460,732 
PTPP return on average assets (1) 1.98%  1.28%  1.58%  1.22%  1.23%
          
Operating Net Income:         
Net income$6,593  $4,053  $4,781  $4,239  $3,404 
Less: Net gains (losses) on sale of securities (70)  187   62   11   - 
Less: Tax effect on sale of securities 17   (46)  (15)  (3)  - 
Operating net income$6,646  $3,912  $4,734  $4,231  $3,404 
          
Operating PTPP Income:         
PTPP income$8,681  $5,316  $6,119  $4,688  $4,510 
Less: Net gains (losses) on sale of securities (70)  187   62   11   - 
Operating PTPP Income$8,751  $5,129  $6,057  $4,677  $4,510 
          
Operating PTPP Return on Average Assets:         
Operating PTPP income$8,751  $5,129  $6,057  $4,677  $4,510 
Average assets$1,741,423  $1,660,060  $1,573,881  $1,522,735  $1,460,732 
Operating PTPP Return on average assets (1) 1.99%  1.24%  1.56%  1.22%  1.23%
          
Operating Return on Average Asset:         
Operating net income$6,646  $3,912  $4,734  $4,231  $3,404 
Average assets$1,741,423  $1,660,060  $1,573,881  $1,522,735  $1,460,732 
Operating return on average assets (1) 1.51%  0.95%  1.22%  1.11%  0.93%
          
(1) Annualized.         


U.S. CENTURY BANK AND SUBSIDIARIES (UNAUDITED)
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
          
 As of and for the three months ended
 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Tangible Book Value per Common Share (at period-end):         
Total stockholders' equity (GAAP)$201,918  $166,302 $170,425 $171,001 $168,586
Less: Intangible assets -   -  -  -  -
Less: Preferred stock -   24,616  32,077  32,077  32,077
Tangible stockholders' equity (non-GAAP)$201,918  $141,686 $138,348 $138,924 $136,509
Total shares issued and outstanding (at period-end):         
Class A common shares 18,767,541   3,889,469  3,889,469  3,889,469  3,887,469
Class B common shares (1) 1,224,212   1,224,212  1,224,212  1,224,212  1,224,212
Total common shares outstanding 19,991,753   5,113,681  5,113,681  5,113,681  5,111,681
Tangible book value per common share (non-GAAP) (2)$10.10  $27.71 $27.05 $27.17 $26.71
          
Operating Net Income Available to Common Stockholders:         
Net income (GAAP)$6,593  $4,053 $4,781 $4,239 $3,404
Less: Preferred dividends 542   754  781  782  782
Less: Exchange and redemption of preferred shares 89,585   -  -  -  -
Net income (loss) available to common stockholders (GAAP) (83,534)  3,299  4,000  3,457  2,622
Add back: Exchange and redemption of preferred shares 89,585   -  -  -  -
Operating net income avail. to common stock (non-GAAP) (3)$6,051  $3,299 $4,000 $3,457 $2,622
Allocation of operating net income per common stock class:         
Class A common stock$5,598  $2,509 $3,042 $2,629 $1,994
Class B common stock$453  $790 $958 $828 $628
Weighted average shares outstanding:         
Class A common stock         
Basic 15,121,460   3,889,469  3,889,469  3,887,512  3,887,469
Diluted 15,187,729   3,933,636  3,913,279  3,911,322  3,944,455
Class B common stock         
Basic 6,121,052   6,121,052  6,121,052  6,121,052  6,121,052
Diluted 6,121,052   6,121,052  6,121,052  6,121,052  6,121,052
Diluted EPS:(3) (4) (5)         
Class A common stock         
Net income (loss) per diluted share (GAAP)$(5.11) $0.64 $0.78 $0.67 $0.51
Add back: Exchange and redemption of preferred shares 5.48   -  -  -  -
Operating net income per diluted share (non-GAAP)$0.37  $0.64 $0.78 $0.67 $0.51
Class B common stock         
Net income (loss) per diluted share (GAAP)$(1.02) $0.13 $0.16 $0.14 $0.10
Add back: Exchange and redemption of preferred shares 1.09   -  -  -  -
Operating net income per diluted share (non-GAAP)$0.07  $0.13 $0.16 $0.14 $0.10
          
(1) Class B Non-Voting Common Stock, $1.00 par value per share; 8,000,000 shares authorized; 6,121,052 issued and outstanding (convertible to 1,224,212 shares of Class A Voting Common Stock); 6,121,052 shares issued and outstanding as adjusted (convertible to 1,224,212 shares of Class A Voting Common Stock). Pursuant to the terms of the Amended and Restated Articles, each share of Class B non-voting common stock is convertible to 0.2 shares of Class A Voting Common Stock after adjustment based on the completion of the Reverse Stock Split of our Class A common stock.
(2) Tangible book value per common share is equal to total stockholders’ equity, excluding preferred stock and intangible assets, divided by the number of shares of common stock outstanding at period-end (including Class A common stock and Class B common stock on an as-converted basis).
(3) The Company believes these non-GAAP measurements are a key indicator of the ongoing earnings power of the Company.
(4) For 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) In calculating net income (loss) per diluted share, 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 a as-converted basis.

 

 




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