# USCB Financial Holdings, Inc. (USCB) 10-Q SEC filing - Q2 FY2026 - Filed: Aug 7, 2026, 11:10 AM EDT - Fiscal quarter: Q2 FY2026 - Calendar quarter: Q2 2026 - Accession: 0001562762-26-000090 - OpenCapital page: https://www.opencapital.sh/filings/0001562762-26-000090 - Markdown URL: https://www.opencapital.sh/filings/0001562762-26-000090.md - Official SEC filing index: https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/0001562762-26-000090-index.htm ## Filing documents - [10-Q (uscb-20260630.htm)](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/uscb-20260630.htm) - [EX-10.3 (exhibit103.htm)](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit103.htm) - [EX-31.1 (exhibit311.htm)](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit311.htm) - [EX-31.2 (exhibit312.htm)](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit312.htm) - [EX-32.1 (exhibit321.htm)](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit321.htm) - [EX-32.2 (exhibit322.htm)](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit322.htm) --- ## 10-Q SEC source: [uscb-20260630.htm](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/uscb-20260630.htm) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number: 001-41196 USCB Financial Holdings, Inc. (Exact name of registrant as specified in its charter) Florida 87-4070846 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2301 N.W. 87th Avenue , Doral , FL 33172 (Address of principal executive offices) (zip code) Registrant’s telephone number, including area code: ( 305 ) 715-5200 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Class A common stock, $1.00 par value per share USCB The Nasdaq Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of July 31, 2026, the registrant had 18,474,470 shares of Class A common stock outstanding. FORM 10-Q June 30, 2026 TABLE OF CONTENTS [PART I](#a407) [3](#a407) [Item 1.](#a412) [Financial Statements](#a412) [3](#a412) [Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025](#a417) [3](#a417) [Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025](#a881) [(Unaudited)](#a881) [4](#a881) [Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2026 and](#a1622) [2025 (Unaudited)](#a1622) [5](#a1622) [Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30,](#a1876) [2026 and 2025 (Unaudited)](#a1876) [6](#a1876) [Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025 (Unaudited)](#a2906) [8](#a2906) [Notes to the Consolidated Financial Statements (Unaudited)](#a3418) [9](#a3418) [Item 2.](#a15480) [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a15480) [30](#a15480) [Item 3.](#a26348) [Quantitative and Qualitative Disclosures About Market Risk](#a26348) [53](#a26348) [Item 4.](#a26359) [Controls and Procedures](#a26359) [53](#a26359) [PART II](#a26463) [54](#a26463) [Item 1.](#a26463) [Legal Proceedings](#a26463) [54](#a26463) [Item 1A.](#a26489) [Risk Factors](#a26489) [54](#a26489) [Item 2.](#a26523) [Unregistered Sales of Equity Securities and Use of Proceeds](#a26523) [54](#a26523) [Item 3.](#a26713) [Defaults Upon Senior Securities](#a26713) [54](#a26713) [Item 4.](#a26723) [Mine Safety Disclosures](#a26723) [54](#a26723) [Item 5.](#a26735) [Other Information](#a26735) [54](#a26735) [Item 6.](#a26803) [Exhibit Index](#a26803) [56](#a26803) [Signatures](#a27217) USCB Financial Holdings, Inc. Q2 2026 Form 10-Q PART I ## Item 1. Financial Statements USCB FINANCIAL HOLDINGS, INC Consolidated Balance Sheets – Unaudited (Dollars in thousands, except share data) June 30, 2026 December 31, 2025 ASSETS: Cash and due from banks $ 7,892 $ 6,027 Interest-bearing deposits in banks 110,262 32,450 Total cash and cash equivalents 118,154 38,477 Investment securities held to maturity, net of allowance of $ 0 and $ 2 , respectively (fair value of $ 124,177 and $ 142,508 , respectively) 136,127 153,941 Investment securities available for sale, at fair value 332,859 307,490 Federal Home Loan Bank stock, at cost 13,395 9,323 Loans held for investment, net of allowance of $ 26,701 and $ 25,500 , respectively 2,295,684 2,163,757 Accrued interest receivable 11,670 11,661 Premises and equipment, net 4,664 4,247 Bank owned life insurance 60,427 59,424 Deferred tax assets, net 17,512 18,046 Lease right-of-use asset 12,625 5,519 Other assets 16,584 19,655 Total assets $ 3,019,701 $ 2,791,540 LIABILITIES: Deposits: Non-interest bearing demand deposits $ 618,062 $ 583,860 Savings and money market deposits 1,251,598 1,186,422 Interest-bearing demand deposits 49,721 46,989 Time deposits 532,890 527,809 Total deposits 2,452,271 2,345,080 Federal Home Loan Bank advances 240,900 158,250 Subordinated notes, net 39,376 39,300 Lease liability 12,625 5,519 Accrued interest and other liabilities 41,291 26,208 Total liabilities 2,786,463 2,574,357 Commitments and contingencies (See Notes 6 and 11) (nil) (nil) STOCKHOLDERS' EQUITY: Preferred stock - Class C; $ 1.00 par value; $ 1,000 per share liquidation preference; 52,748 shares authorized; 0 and 0 issued and outstanding as of June 30, 2026 and December 31, 2025 - - Preferred stock - Class D; $ 1.00 par value; $ 5.00 per share liquidation preference; 12,309,480 shares authorized; 0 and 0 issued and outstanding as of June 30, 2026 and December 31, 2025 - - Preferred stock - Class E; $ 1.00 par value; $ 1,000 per share liquidation preference; 3,185,024 shares authorized; 0 and 0 issued and outstanding as of June 30, 2026 and December 31, 2025 - - Common stock - Class A Voting; $ 1.00 par value; 45,000,000 shares authorized; 18,459,470 issued and outstanding as of June 30, 2026, 18,137,885 issued and outstanding as of December 31, 2025 18,459 18,138 Common stock - Class B Non-voting; $ 1.00 par value; 8,000,000 shares authorized; 0 and 0 issued and outstanding as of June 30, 2026 and December 31, 2025 - - Additional paid-in capital on common stock 281,864 278,852 Accumulated deficit (35,690) (49,542) Accumulated other comprehensive loss (31,395) (30,265) Total stockholders' equity 233,238 217,183 Total liabilities and stockholders' equity $ 3,019,701 $ 2,791,540 The accompanying notes are an integral part of these unaudited consolidated financial statements. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q USCB FINANCIAL HOLDINGS, INC. Consolidated Statements of Operations - Unaudited (Dollars in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Interest income: Loans, including fees $ 34,899 $ 31,946 $ 67,688 $ 62,191 Investment securities 3,858 3,432 7,269 6,456 Interest-bearing deposits in financial institutions 823 776 1,655 1,485 Total interest income 39,580 36,154 76,612 70,132 Interest expense: Interest-bearing demand deposits 311 285 621 623 Savings and money market deposits 8,478 9,410 16,611 18,745 Time deposits 4,628 4,343 9,328 8,261 Federal Home Loan Bank advances 976 1,082 2,016 2,354 Subordinated notes 800 - 1,601 - Total interest expense 15,193 15,120 30,177 29,983 Net interest income before provision for credit losses 24,387 21,034 46,435 40,149 Provision for credit losses 1,267 1,031 2,068 1,712 Net interest income after provision for credit losses 23,120 20,003 44,367 38,437 Non-interest income: Service fees 2,601 2,402 5,701 4,733 Gain on sale of securities available for sale, net - - 14 - Gain on sale of loans held for sale, net - 151 106 676 Other non-interest income 959 817 1,889 1,677 Total non-interest income 3,560 3,370 7,710 7,086 Non-interest expense: Salaries and employee benefits 8,537 7,954 17,107 15,590 Occupancy 1,369 1,337 2,685 2,621 Regulatory assessments and fees 397 396 881 817 Consulting and legal fees 583 263 1,144 456 Network and information technology services 524 564 1,084 1,069 Other operating expense 2,556 2,120 4,776 4,133 Total non-interest expense 13,966 12,634 27,677 24,686 Income before income tax expense 12,714 10,739 24,400 20,837 Income tax expense 3,636 2,599 5,971 5,039 Net income $ 9,078 $ 8,140 $ 18,429 $ 15,798 Per share information: Earnings per share, basic $ 0.49 $ 0.41 $ 1.01 $ 0.79 Earnings per share, diluted $ 0.49 $ 0.40 $ 1.00 $ 0.78 Cash dividends declared $ 0.125 $ 0.10 $ 0.250 $ 0.20 The accompanying notes are an integral part of these unaudited consolidated financial statements. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q USCB FINANCIAL HOLDINGS, INC. Consolidated Statements of Comprehensive Income - Unaudited (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 9,078 $ 8,140 $ 18,429 $ 15,798 Other comprehensive (loss) income: Unrealized gain (loss) on investment securities available for sale 286 (895) (1,922) 3,778 Reclassification adjustment for amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity 99 67 167 134 Reclassification adjustment for realized gains included in net income - - (14) - Unrealized gain (loss) on cash flow hedge 14 (28) 111 (186) Tax effect (444) 217 528 (944) Total other comprehensive (loss) income, net of tax (45) (639) (1,130) 2,782 Total comprehensive income $ 9,033 $ 7,501 $ 17,299 $ 18,580 The accompanying notes are an integral part of these unaudited consolidated financial statements. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q USCB FINANCIAL HOLDINGS, INC. Consolidated Statements of Changes in Stockholders’ Equity - Unaudited (Dollars in thousands, except per share data) Common Stock Additional Paid-in Capital on Common Stock Accumulated Deficit Accumulated Other Comprehensive Loss Shares Par Value Total Stockholders' Equity Balance at March 31, 2026 18,257,400 $ 18,257 $ 278,812 $ (42,473) $ (31,350) $ 223,246 Net income - - - 9,078 - 9,078 Other comprehensive loss - - - - (45) (45) Exercise of stock options 202,070 202 2,178 - - 2,380 Dividend payment - - - (2,295) - (2,295) Stock-based compensation - - 874 - - 874 Balance at June 30, 2026 18,459,470 $ 18,459 $ 281,864 $ (35,690) $ (31,395) $ 233,238 Balance at March 31, 2025 20,048,385 $ 20,048 $ 308,313 $ (62,160) $ (41,113) $ 225,088 Net income - - - 8,140 - 8,140 Other comprehensive loss - - - - (639) (639) Exercise of stock options 30,000 30 195 - - 225 Dividend payment - - - (2,005) - (2,005) Stock-based compensation - - 774 - - 774 Balance at June 30, 2025 20,078,385 $ 20,078 $ 309,282 $ (56,025) $ (41,752) $ 231,583 The accompanying notes are an integral part of these consolidated financial statements. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Common Stock Additional Paid-in Capital on Common Stock Accumulated Deficit Accumulated Other Comprehensive Loss Shares Par Value Total Stockholders' Equity Balance at December 31, 2025 18,137,885 $ 18,138 $ 278,852 $ (49,542) $ (30,265) $ 217,183 Net income - - - 18,429 - 18,429 Other comprehensive loss - - - - (1,130) (1,130) Repurchase of Class A common stock (53,475) (53) (948) - - (1,001) Restricted stock issued 147,490 147 (147) - - - Exercise of stock options 227,570 227 2,344 - - 2,571 Dividend payment - - - (4,577) - (4,577) Stock-based compensation - - 1,763 - - 1,763 Balance at June 30, 2026 18,459,470 $ 18,459 $ 281,864 $ (35,690) $ (31,395) $ 233,238 Balance at December 31, 2024 19,924,632 $ 19,925 $ 307,810 $ (67,813) $ (44,534) $ 215,388 Net income - - - 15,798 - 15,798 Other comprehensive income - - - - 2,782 2,782 Repurchase of Class A common stock (9,671) (10) (164) - - (174) Restricted stock issued 124,424 124 (124) - - - Exercise of stock options 39,000 39 278 - - 317 Dividend payment - - - (4,010) - (4,010) Stock-based compensation - - 1,482 - - 1,482 Balance at June 30, 2025 20,078,385 $ 20,078 $ 309,282 $ (56,025) $ (41,752) $ 231,583 The accompanying notes are an integral part of these consolidated financial statements. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q USCB FINANCIAL HOLDINGS, INC. Consolidated Statements of Cash Flows - Unaudited (Dollars in thousands) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 18,429 $ 15,798 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 2,068 1,712 Depreciation and amortization 345 298 Accretion of premiums on investment securities, net (784) (728) Amortization of deferred loan fees, net 314 280 Stock-based compensation 1,763 1,482 Gain on sale of available for sale securities, net (14) - Gain on sale of loans held for sale, net (106) (676) Proceeds from the sale of loans held for sale 1,329 9,745 Origination of loans held for sale (1,223) (9,069) Increase in cash surrender value of bank owned life insurance (1,003) (955) Amortization of subordinated debt issuance costs 76 - Deferred income tax expense 1,168 5,039 Net change in operating assets and liabilities: Accrued interest receivable (9) (340) Other assets 3,075 (6,585) Accrued interest and other liabilities 14,498 16,667 Net cash provided by operating activities 39,926 32,668 Cash flows from investing activities: Proceeds from maturities and pay-downs of investment securities held to maturity 17,950 6,044 Purchase of investment securities available for sale (75,083) (31,676) Proceeds from maturities and pay-downs of investment securities available for sale 11,428 11,063 Proceeds from sales of investment securities available for sale 37,181 - Net increase in loans held for investment (89,635) (71,439) Purchase of loans held for investment (44,090) (70,015) Additions to premises and equipment (762) (94) Purchase of bank owned life insurance - (4,000) Proceeds from the redemption of Federal Home Loan Bank stock 16,167 8,170 Purchase of Federal Home Loan Bank stock (20,239) (5,727) Net cash used in investment activities (147,083) (157,674) Cash flows from financing activities: Proceeds from issuance of Class A common stock, net 2,571 317 Cash dividends paid (4,577) (4,010) Repurchase of Class A common stock (1,001) (174) Net increase in deposits 107,191 161,657 Proceeds from FHLB advances 448,500 117,000 Repayments on Federal Home Loan Bank advances (365,850) (172,000) Net cash provided by financing activities 186,834 102,790 Net increase (decrease) in cash and cash equivalents 79,677 (22,216) Cash and cash equivalents at beginning of period 38,477 77,035 Cash and cash equivalents at end of period $ 118,154 $ 54,819 Supplemental disclosure of cash flow information: Interest paid $ 28,968 $ 29,167 Taxes paid $ 532 $ - Lease liabilities $ 7,106 $ - The accompanying notes are an integral part of these unaudited consolidated financial statements. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 9 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview USCB Financial Holdings, Inc., a Florida corporation incorporated in 2021, is a bank holding company with one direct wholly owned subsidiary, U.S. Century Bank (the “Bank”), together referred to as “the Company”. The Bank, established in 2002, is a Florida state-chartered, non-member financial institution providing financial services through its banking centers located in South Florida. The Bank owns a subsidiary, Florida Peninsula Title LLC, that offers our clients title insurance policies for real estate transactions closed at the Bank. Licensed in the State of Florida and approved by the Department of Insurance Regulation, Florida Peninsula Title LLC began operations in 2021. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Principles of Consolidation The Company consolidates entities in which it has a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. Use of Estimates To prepare consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements. The most significant estimate impacting the Company’s consolidated financial statements is the allowance for credit losses (“ACL”). Reclassifications Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current presentation. Reclassifications had no impact on prior period net income or stockholders’ equity. Recently Issued Accounting Standards There were no recently issued accounting standards adopted or issued during the period that are expected to have a material impact on the Company’s consolidated financial statements. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 10 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q 2. INVESTMENT SECURITIES The following tables present a summary of the amortized cost, unrealized or unrecognized gains and losses, and fair value of investment securities at the dates indicated (in thousands): June 30, 2026 Available-for-sale: Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Government Agency $ 11,883 $ - $ (1,028) $ 10,855 Collateralized mortgage obligations 84,406 - (17,307) 67,099 Mortgage-backed securities - residential 34,909 108 (6,026) 28,991 Mortgage-backed securities - commercial 215,345 171 (8,517) 206,999 Municipal securities 5,191 - (966) 4,225 Bank subordinated debt securities 14,578 226 (114) 14,690 $ 366,312 $ 505 $ (33,958) $ 332,859 June 30, 2026 Held-to-maturity: Amortized Cost Unrecognized Gains Unrecognized Losses Fair Value U.S. Government Agency $ 37,328 $ 67 $ (3,266) $ 34,129 Collateralized mortgage obligations 48,762 705 (5,646) 43,821 Mortgage-backed securities - residential 35,188 628 (3,294) 32,522 Mortgage-backed securities - commercial 14,849 - (1,144) 13,705 $ 136,127 $ 1,400 $ (13,350) $ 124,177 Allowance for credit losses - securities held-to-maturity - Securities held-to maturity, net of allowance for credit losses $ 136,127 December 31, 2025 Available-for-sale: Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Government Agency $ 15,169 $ 18 $ (1,043) $ 14,144 Collateralized mortgage obligations 92,871 - (17,043) 75,828 Mortgage-backed securities - residential 35,865 135 (6,083) 29,917 Mortgage-backed securities - commercial 174,622 347 (6,861) 168,108 Municipal securities 5,196 - (933) 4,263 Bank subordinated debt securities 15,284 189 (243) 15,230 $ 339,007 $ 689 $ (32,206) $ 307,490 December 31, 2025 Held-to-maturity: Amortized Cost Unrecognized Gains Unrecognized Losses Fair Value U.S. Government Agency $ 41,158 $ 91 $ (3,279) $ 37,970 Collateralized mortgage obligations 51,431 854 (5,499) 46,786 Mortgage-backed securities - residential 37,221 760 (3,263) 34,718 Mortgage-backed securities - commercial 15,088 - (1,037) 14,051 Corporate bonds 9,045 - (62) 8,983 $ 153,943 $ 1,705 $ (13,140) $ 142,508 Allowance for credit losses - securities held-to-maturity (2) Securities held-to maturity, net of allowance for credit losses $ 153,941 Transfers of debt securities into the held -to-maturity (“HTM”) category from the available for sale (“AFS”) category are made at fair value as of the date of transfer. The unrealized gain or loss at the date of transfer is retained in accumulated other comprehensive loss (“AOCL”) and in the carrying value of the HTM securities and there is no impact to net income. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 11 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Such amounts are amortized over the remaining life of the security. The Company made two transfers from AFS to HTM portfolios in 2022. During the quarter ended June 30, 2026, there were no investment securities that were transferred from AFS to HTM. For the three months ended June 30, 2026, total amortization out of AOCL for net unrealized losses on securities transferred in 2022 from AFS to HTM was $ 99 thousand and $ 67 thousand for the three months ended June 30, 2025. At June 30, 2026, the fair value of the transferred securities was $ 83.4 million and the balance of the remaining unamortized loss was $ 8.8 million. The measurement of expected credit losses under the current expected credit loss (“CECL”) methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. CECL requires a loss reserve for securities classified as HTM. The reserve should reflect historical credit performance as well as the impact of projected economic forecasts. For U.S. Government bonds and U.S. Agency issued bonds classified as HTM, the explicit guarantee of the U.S. Government is sufficient to conclude that an allowance for credit loss reserve is not required. The reserve requirement is for three primary assets groups: municipal bonds, corporate bonds, and non- agency securitizations. The Company calculates quarterly the loss reserve utilizing Moody’s ImpairmentStudio. The CECL measurement for investment securities incorporates historical data, containing defaults and recoveries information, and Moody’s baseline economic forecast. The solution uses the probability of default/loss given default (“PD/LGD”) approach. PD represents the likelihood a borrower will default. Within the Moody’s model, this is determined using historical default data, adjusted for the current economic environment. LGD projects the expected loss if a borrower were to default. The Company monitors the credit quality of HTM securities through the use of credit ratings. Credit ratings are monitored by the Company on at least a quarterly basis. As of June 30, 2026 and December 31, 2025, all HTM securities held by the Company were rated investment grade. At June 30, 2026, the Company's HTM securities portfolio consisted entirely of U.S. government and U.S. agency- issued bonds and mortgage-backed securities with an amortized cost of $ 136.1 million. Due to the explicit or implicit guarantees associated with these securities, management determined that no ACL was required as of June 30, 2026. The Company utilizes a PD/LGD methodology to estimate expected credit losses for HTM securities exposed to non-government credit risk. As of December 31, 2025, the ACL for HTM securities was $ 2 thousand. The carrying value of HTM securities represents amortized cost less the related ACL. The Company’s investment portfolio includes AFS debt securities, which are carried at fair value with unrealized gains and losses recognized in AOCL, net of applicable taxes. The Company evaluates whether the declines in fair value are attributable to credit losses or other factors like interest rate risk, using both quantitative and qualitative analyses, including company performance analysis, review of credit ratings, bond vintage, remaining payment terms, prepayment speeds and analysis of macro-economic conditions. When the fair value of an AFS security is less than its amortized cost and the decline is attributable to credit-related factors, an ACL is recorded. As a result of this evaluation, the Company concluded that no allowance was required on AFS securities as of June 30, 2026 and as of December 31, 2025. Information pertaining to investment securities with gross unrealized losses, aggregated by investment category and length of time that those individual securities have been in a continuous loss position, are presented as of the following dates (in thousands): June 30, 2026 Less than 12 months 12 months or more Total Available-for-Sale: Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government Agency $ 5,072 $ (129) $ 5,783 $ (899) $ 10,855 $ (1,028) Collateralized mortgage obligations 3,760 (129) 63,339 (17,178) 67,099 (17,307) Mortgage-backed securities - residential - - 21,886 (6,026) 21,886 (6,026) Mortgage-backed securities - commercial 114,454 (1,368) 60,238 (7,149) 174,692 (8,517) Municipal securities - - 4,225 (966) 4,225 (966) Bank subordinated debt securities 1,731 (19) 6,396 (95) 8,127 (114) $ 125,017 $ (1,645) $ 161,867 $ (32,313) $ 286,884 $ (33,958) USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 12 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q December 31, 2025 Less than 12 months 12 months or more Total Available-for-sale: Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government Agency $ 5,937 $ (59) $ 5,649 $ (984) $ 11,586 $ (1,043) Collateralized mortgage obligations 8,929 (93) 66,899 (16,950) 75,828 (17,043) Mortgage-backed securities - residential - - 22,695 (6,083) 22,695 (6,083) Mortgage-backed securities - commercial 59,655 (477) 56,852 (6,384) 116,507 (6,861) Municipal securities - - 4,263 (933) 4,263 (933) Bank subordinated debt securities 2,020 (4) 7,234 (239) 9,254 (243) $ 76,541 $ (633) $ 163,592 $ (31,573) $ 240,133 $ (32,206) The contractual cash flows associated with U.S. Government Agency securities, collateralized mortgage obligations, and residential and commercial mortgage-backed securities are guaranteed by U.S. government-sponsored enterprises, thereby minimizing credit risk. Municipal bonds are of high credit quality, and the observed declines in fair value are not attributable to a deterioration in the creditworthiness. Similarly, the decrease in fair value of bank subordinated debt securities is primarily driven by changes in market interest rates rather than credit concerns. Based on management’s evaluation of these factors, management believes that the unrealized losses on these debt securities are attributable to fluctuations in market spreads and interest rate movements, rather than adverse changes in the underlying credit quality of the issuers. The Company does not intend to sell the investments before recovery of its amortized cost basis, which may be at maturity, and it is more likely than not that the Company will not be required to sell the securities before maturity. Gains and losses on the sale of securities are recorded on the trade date and are determined on the specific identification basis. The following table presents the proceeds, realized gross gains and realized gross losses on sales and calls of AFS debt securities for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Available-for-sale: 2026 2025 2026 2025 Proceeds from sale and call of securities $ - $ - $ 37,181 $ - Gross gains $ - $ - $ 82 $ - Gross losses - - (68) - Net realized gain $ - $ - $ 14 $ - The amortized cost and fair value of investment securities, by contractual maturity, are shown below as of the date indicated (in thousands). Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity June 30, 2026: Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ - $ - $ - $ - Due after one year through five years 2,000 1,990 - - Due after five years through ten years 17,769 16,925 - - Due after ten years - - - - U.S. Government Agency 11,883 10,855 37,328 34,129 Collateralized mortgage obligations 84,406 67,099 48,762 43,821 Mortgage-backed securities - residential 34,909 28,991 35,188 32,522 Mortgage-backed securities - commercial 215,345 206,999 14,849 13,705 $ 366,312 $ 332,859 $ 136,127 $ 124,177 At June 30, 2026, there were no securities held in the portfolio from any one issuer in an amount greater than 10% of total stockholders’ equity other than the U.S. Government and U.S. Government Agency issued securities. All the collateralized mortgage obligations and mortgage-backed securities at June 30, 2026 and December 31, 2025 were issued by U.S. Government entities. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 13 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The Bank is a Qualified Public Depository (“QPD”) with the State of Florida. As a QPD, the Bank has the legal authority to maintain public deposits from cities, municipalities, and the State of Florida. These public deposits are secured by securities pledged to the State of Florida at a ratio of 25 % of the quarter daily average balance for quarters ended June 30, 2026 and December 31, 2025. The Bank must also maintain a minimum amount of pledged securities to be in the public funds program. As of June 30, 2026, the Bank had a total of $ 223.6 million in deposits under the public funds program and pledged to the State of Florida for these public funds were twenty-three bonds with an aggregate fair value of $ 56.3 million. As of December 31, 2025, the Bank had a total of $ 167.7 million in deposits under the public funds program and pledged to the State of Florida for these public funds were fifteen bonds with an aggregate fair value of $ 43.5 million. 3. LOANS The following table is a summary of the distribution of loans held for investment by type (dollars in thousands): June 30, 2026 December 31, 2025 Total Percent of Total Total Percent of Total Residential real estate $ 356,747 15.4 % $ 307,692 14.1 % Commercial real estate 1,314,367 56.6 % 1,244,835 57.0 % Commercial and industrial 300,265 13.0 % 295,548 13.5 % Correspondent banks 137,912 6.0 % 127,968 5.9 % Consumer and other 207,404 9.0 % 207,215 9.5 % Total gross loans 2,316,695 100.0 % 2,183,258 100.0 % Plus: Deferred fees/costs 5,690 5,999 Total loans net of deferred fees/costs 2,322,385 2,189,257 Less: Allowance for credit losses 26,701 25,500 Total net loans $ 2,295,684 $ 2,163,757 At June 30, 2026 and December 31, 2025, the Company had $ 660.1 million and $ 561.4 million, respectively, of commercial real estate and residential mortgage loans pledged as collateral for lines of credit with the Federal Home Loan Bank (“FHLB”) of Atlanta and the Federal Reserve Bank of Atlanta. Allowance for Credit Losses In general, the Company utilizes the Discounted Cash Flow (“DCF”) method or the Weighted-Average Remaining Maturity (“WARM”) methodology to estimate the quantitative portion of the ACL for loan pools. The DCF method uses a loss driver analysis (“LDA”) and DCF analysis. Management engaged advisors and consultants with expertise in CECL model development to assist in development of a LDA based on regression models and supportable forecast. Peer group data obtained from FFIEC Call Report filings is used to inform regression analyses to quantify the impact of reasonable and supportable forecasts in projective models. Economic forecasts applied to regression models to estimate probability of default for loan receivables use at least one of the following economic indicators: civilian unemployment rate (national), real gross domestic product growth (national GDP) or the House Price Index (“HPI”). For each of the segments in which the WARM methodology is used, the long-term average loss rate is calculated and applied on a quarterly basis for the remaining life of the pool. Adjustments for economic expectations are made through qualitative factors. Qualitative factors (“Q-Factors”) used in the ACL methodology include: - Changes in lending policies, procedures, and strategies - Changes in international, national, regional, and local economic conditions - Changes in nature and volume of the portfolio - Changes in the volume and severity of past due loans and other similar conditions - Concentration risk - Changes in the value of underlying collateral USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 14 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q - The effect of other external factors: e.g., competition, legal, and regulatory requirements - Changes in lending management, among others - Changes in the loan review system Changes in the ACL for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands): Residential Real Estate Commercial Real Estate Commercial and Industrial Correspondent Banks Consumer and Other Total Three Months Ended June 30, 2026 Beginning balance $ 5,270 $ 9,932 $ 5,330 $ 1,018 $ 4,552 $ 26,102 Provision for credit losses (1) 222 184 407 76 (2) 887 Recoveries 8 - 1 - - 9 Charge-offs (296) - - - (1) (297) Ending Balance $ 5,204 $ 10,116 $ 5,738 $ 1,094 $ 4,549 $ 26,701 Six Months Ended June 30, 2026 Beginning balance $ 5,908 $ 9,476 $ 4,814 $ 1,015 $ 4,287 $ 25,500 Provision for credit losses (2) (422) 640 919 79 269 1,485 Recoveries 14 - 5 - - 19 Charge-offs (296) - - - (7) (303) Ending Balance $ 5,204 $ 10,116 $ 5,738 $ 1,094 $ 4,549 $ 26,701 (1) Provision for credit losses excludes a $ 380 thousand provision due to unfunded commitments included in accrued interest and other liabilities. (2) Provision for credit losses excludes a $ 585 thousand provision due to unfunded commitments included in accrued interest and other liabilities and a $ 2 thousand release related to investment securities held to maturity. Residential Real Estate Commercial Real Estate Commercial and Industrial Correspondent Banks Consumer and Other Total Three Months Ended June 30, 2025 Beginning balance $ 5,115 $ 9,197 $ 4,434 $ 817 $ 5,177 $ 24,740 Provision for credit losses (1) 356 294 73 57 115 895 Recoveries 6 - 1 - 1 8 Charge-offs - - - - (710) (710) Ending Balance $ 5,477 $ 9,491 $ 4,508 $ 874 $ 4,583 $ 24,933 Six Months Ended June 30, 2025 Beginning balance $ 5,121 $ 8,788 $ 4,633 $ 654 $ 4,874 $ 24,070 Provision for credit losses (2) 344 703 (131) 220 431 1,567 Recoveries 12 - 6 - 1 19 Charge-offs - - - - (723) (723) Ending Balance $ 5,477 $ 9,491 $ 4,508 $ 874 $ 4,583 $ 24,933 (1) Provision for credit losses excludes a $ 134 thousand provision due to unfunded commitments included in accrued interest and other liabilities and a $ 2 thousand provision related to investment securities held to maturity. (2) Provision for credit losses excludes a $ 144 thousand provision due to unfunded commitments included in accrued interest and other liabilities a $ 1 thousand provision related to investment securities held to maturity. At June 30, 2026, the ACL for loans was $ 26.7 million, compared to $ 25.5 million at December 31, 2025. The $ 1.2 million increase was primarily driven by growth in the loan portfolio, partially offset by reductions in qualitative factor adjustments resulting from improved credit quality trends identified through loan quality reviews, particularly within the commercial real estate ("CRE") and commercial and industrial ("C&I") portfolios. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 15 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Charge offs related to loans for the three months ended June 30, 2026 were $ 297 thousand, of which $ 1 thousand related to loans originated in 2026 and $ 296 thousand related to loans originated in 2025. Charge offs related to loans for the six months ended June 30, 2026 were $ 303 thousand, of which $ 7 thousand related to loans originated in 2026 and $ 296 thousand related to loans originated in 2025. Charge offs for the three months ended June 30, 2025 totaled $ 710 thousand, of which $ 709 thousand related to loans originated in 2022 and $ 1 thousand related to loans originated in 2025. Charge offs related to loans for the six months ended June 30, 2025 totaled $ 723 thousand, of which $ 709 thousand related to loans originated in 2022 and $ 14 thousand related to loans originated in 2025. The ACL and the outstanding balances in the specified loan categories as of June 30, 2026 and December 31, 2025 are as follows (in thousands): Residential Real Estate Commercial Real Estate Commercial and Industrial Correspondent Banks Consumer and Other Total June 30, 2026: Allowance for credit losses: Individually evaluated $ 87 $ - $ 13 $ - $ - $ 100 Collectively evaluated 5,117 10,116 5,725 1,094 4,549 26,601 Balances, end of period $ 5,204 $ 10,116 $ 5,738 $ 1,094 $ 4,549 $ 26,701 Loans: Individually evaluated $ 4,550 $ - $ 1,218 $ - $ - $ 5,768 Collectively evaluated 352,197 1,314,367 299,047 137,912 207,404 2,310,927 Balances, end of period $ 356,747 $ 1,314,367 $ 300,265 $ 137,912 $ 207,404 $ 2,316,695 December 31, 2025: Allowance for credit losses: Individually evaluated $ 27 $ - $ 84 $ - $ - $ 111 Collectively evaluated 5,881 9,476 4,730 1,015 4,287 25,389 Balances, end of period $ 5,908 $ 9,476 $ 4,814 $ 1,015 $ 4,287 $ 25,500 Loans: Individually evaluated $ 5,583 $ - $ 1,265 $ - $ - $ 6,848 Collectively evaluated 302,109 1,244,835 294,283 127,968 207,215 2,176,410 Balances, end of period $ 307,692 $ 1,244,835 $ 295,548 $ 127,968 $ 207,215 $ 2,183,258 Credit Quality Indicators The Company grades loans based on the estimated capability of the borrower to repay the contractual obligation of the loan agreement based on relevant information which may include: current financial information on the borrower, historical payment experience, credit documentation and other current economic trends. Internal credit risk grades are evaluated periodically. The Company's internally assigned credit risk grades are as follows: Pass – Loans indicate different levels of satisfactory financial condition and performance. Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 16 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligator or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified at substandard, with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss – Loans classified as loss are considered uncollectible. Loan credit exposures by internally assigned grades are presented below for the periods indicated (in thousands): As of June 30, 2026 Term Loans by Origination Year Revolving Loans Total 2026 2025 2024 2023 2022 Prior Residential real estate Pass $ 77,731 $ 63,118 $ 78,207 $ 30,802 $ 21,915 $ 66,205 $ 15,891 $ 353,869 Special Mention - 518 452 - - 400 - 1,370 Substandard - 415 989 - - 104 - 1,508 Total 77,731 64,051 79,648 30,802 21,915 66,709 15,891 356,747 Commercial real estate Pass 209,748 226,699 161,919 97,731 257,817 341,269 5,961 1,301,144 Special Mention - - - 8,405 - 3,115 - 11,520 Substandard - - - - - 1,703 - 1,703 Total 209,748 226,699 161,919 106,136 257,817 346,087 5,961 1,314,367 Commercial and industrial Pass 23,226 72,197 60,469 52,128 30,676 38,088 21,297 298,081 Special Mention - - - - - 773 - 773 Substandard - - 72 356 - 983 - 1,411 Total 23,226 72,197 60,541 52,484 30,676 39,844 21,297 300,265 Correspondent banks Pass 130,852 7,060 - - - - - 137,912 Total 130,852 7,060 - - - - - 137,912 Consumer and other Pass 9,177 55,213 33,778 35,453 50,070 20,337 3,376 207,404 Total 9,177 55,213 33,778 35,453 50,070 20,337 3,376 207,404 Total Loans Pass 450,734 424,287 334,373 216,114 360,478 465,899 46,525 2,298,410 Special Mention - 518 452 8,405 - 4,288 - 13,663 Substandard - 415 1,061 356 - 2,790 - 4,622 Doubtful - - - - - - - - Total $ 450,734 $ 425,220 $ 335,886 $ 224,875 $ 360,478 $ 472,977 $ 46,525 $ 2,316,695 USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 17 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q As of December 31, 2025 Term Loans by Origination Year Revolving Loans Total 2025 2024 2023 2022 2021 Prior Residential real estate Pass $ 65,582 $ 83,426 $ 32,139 $ 23,685 $ 21,056 $ 58,220 $ 20,168 $ 304,276 Special Mention 128 - - 587 - 201 - 916 Substandard - 917 1,468 - - 115 - 2,500 Total 65,710 84,343 33,607 24,272 21,056 58,536 20,168 307,692 Commercial real estate Pass 241,028 184,323 109,465 281,985 134,663 273,483 5,876 1,230,823 Special Mention - - 8,451 - - 3,162 - 11,613 Substandard - - - - 1,724 675 - 2,399 Total 241,028 184,323 117,916 281,985 136,387 277,320 5,876 1,244,835 Commercial and industrial Pass 75,867 63,178 58,060 32,118 28,090 12,314 23,542 293,169 Special Mention - 72 - - 835 - - 907 Substandard - - 389 - 445 638 - 1,472 Total 75,867 63,250 58,449 32,118 29,370 12,952 23,542 295,548 Correspondent banks Pass 127,968 - - - - - - 127,968 Total 127,968 - - - - - - 127,968 Consumer and other Pass 59,276 34,309 36,808 51,091 23,214 747 1,770 207,215 Total 59,276 34,309 36,808 51,091 23,214 747 1,770 207,215 Total Loans Pass 569,721 365,236 236,472 388,879 207,023 344,764 51,356 2,163,451 Special Mention 128 72 8,451 587 835 3,363 - 13,436 Substandard - 917 1,857 - 2,169 1,428 - 6,371 Doubtful - - - - - - - - Total $ 569,849 $ 366,225 $ 246,780 $ 389,466 $ 210,027 $ 349,555 $ 51,356 $ 2,183,258 USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 18 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Loan Aging The Company also considers the performance of loans in grading and in evaluating the credit quality of the loan portfolio. The Company analyzes credit quality and loan grades based on payment performance and the aging status of the loans. The following tables include an aging analysis of accruing loans and total non-accruing loans as of June 30, 2026 and December 31, 2025 (in thousands): Accruing As of June 30, 2026 Current Past Due 30- 89 Days Past Due 90 Days or > and Still Accruing Total Accruing Non-Accrual Total Loans Residential real estate: Home equity lines of credit and other $ 2,876 $ - $ - $ 2,876 $ - $ 2,876 1-4 family residential 271,352 1,228 - 272,580 1,284 273,864 Condo residential 79,783 - - 79,783 224 80,007 354,011 1,228 - 355,239 1,508 356,747 Commercial real estate: Land and construction 53,073 - - 53,073 - 53,073 Multi-family residential 324,711 - - 324,711 - 324,711 Condo commercial 68,666 - - 68,666 - 68,666 Commercial property 867,917 - - 867,917 - 867,917 1,314,367 - - 1,314,367 - 1,314,367 Commercial and industrial: Secured 280,212 - - 280,212 640 280,852 Unsecured 19,413 - - 19,413 - 19,413 299,625 - - 299,625 640 300,265 Correspondent banks 137,912 - - 137,912 - 137,912 Consumer and other 207,404 - - 207,404 - 207,404 Total $ 2,313,319 $ 1,228 $ - $ 2,314,547 $ 2,148 $ 2,316,695 USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 19 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Accruing As of December 31, 2025: Current Past Due 30-89 Days Past Due 90 Days or > and Still Accruing Total Accruing Non-Accrual Total Loans Residential real estate: Home equity lines of credit and other $ 1,538 $ - $ - $ 1,538 $ - $ 1,538 1-4 family residential 238,852 1,150 - 240,002 2,385 242,387 Condo residential 62,364 1,288 - 63,652 115 63,767 302,754 2,438 - 305,192 2,500 307,692 Commercial real estate: Land and construction 83,305 - - 83,305 - 83,305 Multi-family residential 254,562 - - 254,562 - 254,562 Condo commercial 61,525 - - 61,525 - 61,525 Commercial property 845,003 440 - 845,443 - 845,443 1,244,395 440 - 1,244,835 - 1,244,835 Commercial and industrial: Secured 272,900 71 - 272,971 638 273,609 Unsecured 21,939 - - 21,939 - 21,939 294,839 71 - 294,910 638 295,548 Correspondent banks 127,968 - - 127,968 - 127,968 Consumer and other 207,215 - - 207,215 - 207,215 Total $ 2,177,171 $ 2,949 $ - $ 2,180,120 $ 3,138 $ 2,183,258 Non-accrual Status The following table includes the amortized cost basis of loans on non-accrual status as of June 30, 2026 and as of December 31, 2025 (in thousands): June 30, 2026 Non-accrual Loans With No Related Allowance Non-accrual Loans With Related Allowance Total Non- accruals Residential real estate $ 1,444 $ 64 $ 1,508 Commercial and industrial 640 - 640 Total $ 2,084 $ 64 $ 2,148 December 31, 2025 Non-accrual Loans With No Related Allowance Non-accrual Loans With Related Allowance Total Non- accruals Residential real estate $ 2,500 $ - $ 2,500 Commercial and industrial 563 75 638 Total $ 3,063 $ 75 $ 3,138 Accrued interest receivable is excluded from the estimate of credit losses. There was no interest income recognized attributable to non-accrual loans outstanding during the three and six months ended June 30, 2026 and 2025. Interest income on these loans for the three months ended June 30, 2026 and 2025, would have been approximately $ 42 thousand and $ 29 thousand, respectively, had these loans performed in accordance with their original terms. Interest income on these loans for the six months ended June 30, 2026 and 2025, would have been approximately $ 77 thousand and $ 80 thousand, respectively, had these loans performed in accordance with their original terms. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 20 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Collateral-Dependent Loans A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale or operation of the collateral. The following table includes the amortized cost basis of collateral dependent loans related to borrowers experiencing financial difficulty by type of collateral as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Collateral Type Residential Real Estate Specific Reserve Residential real estate $ 1,565 $ 64 Commercial and industrial 72 - Total $ 1,637 $ 64 December 31, 2025 Collateral Type Residential Real Estate Specific Reserve Residential real estate $ 2,583 $ - Total $ 2,583 $ - Management evaluates on an individual basis collateral dependent loans using the fair value of the collateral method to determine if an allowance for credit loss reserve is necessary. The ACL is measured based on the difference of the fair value of the collateral and amortized cost basis of the loan. If the final collateral valuation is less than the amortized cost basis of the loan, a reserve amount is calculated. If the collateral valuation is equal to or greater than the amortized cost basis of the loan, no reserve is determined. Loan Modifications to Borrowers Experiencing Financial Difficulties The Company had no new modifications to borrowers experiencing financial difficulties for the three months ended June 30, 2026 and one new modification to borrowers experiencing financial difficulties for the six months ended June 30, 2026. The Company had no new modifications to borrowers experiencing financial difficulties for the three and six months ended June 30, 2025. The following table presents newly restructured loans, by type of modification, which occurred during the six months ended June 30, 2026 (in thousands): Amortized Cost Basis Prior to Modification Amortized Cost Basis After Modification Number of Loans Combination Modifications Total Modifications Number of Loans Combination Modifications Total Modifications Commercial and industrial 1 $ 418 $ 418 1 $ 350 $ 350 Total 1 $ 418 $ 418 1 $ 350 $ 350 The loan modification for the borrower experiencing financial difficulty at June 30, 2026 included a combination of principal and maturity modifications. There was a principal reduction of $ 68 thousand and a two -year extension of the loan maturity. There was no commitment to lend additional funds to this customer. There were no existing loan modifications that subsequently defaulted during either the three or the six months ended June 30, 2026 and 2025. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 21 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q 4. LEASES The Company leases certain banking facilities and office space under non-cancelable operating lease agreements. During the six months ended June 30, 2026, the Company exercised renewal options and modified certain lease arrangements, including extensions of the Coral Gables branch and Doral branch/headquarters leases for additional five - year terms. These lease modifications resulted in the remeasurement of operating lease liabilities and corresponding right- of-use assets. Operating lease right-of-use assets and lease liabilities totaled $ 12.6 million at June 30, 2026, compared to $ 5.5 million at December 31, 2025. The lease modifications were measured using an incremental borrowing rate of 4.27 %. The Company’s incremental borrowing rate is based on the FHLB advances rate matching or nearing the lease term. There were no material changes to the Company's lease accounting policies from those disclosed in Note 4, Leases, included in the Annual Report on Form 10-K for the year ended December 31, 2025. 5. INCOME TAXES The Company’s income tax expense is presented in the following table for the periods indicated (in thousands): Six Months Ended June 30, 2026 2025 Pre-tax income: Domestic $ 24,400 $ 20,837 Total pre-tax income $ 24,400 $ 20,837 Current tax expense: Federal $ 4,745 $ - State 58 - Total current 4,803 - Deferred tax expense: Federal 140 3,948 State 1,028 1,091 Deferred income tax expense 1,168 5,039 Total income tax expense $ 5,971 $ 5,039 The actual income tax expense for the six months ended June 30, 2026 and 2025 differs from the statutory tax expense for the periods (computed by applying the U.S. federal corporate tax rate of 21 % for both 2026 and 2025 periods to income before income tax expense) as follows (in thousands): Six Months Ended June 30, 2026 2025 Amount % Pre-tax Income Amount % Pre-tax Income Computed tax at the statutory federal income tax rate $ 5,124 21.00% $ 4,376 21.00% Increase (decrease) resulting from: State income taxes, net of federal tax benefit (1) 1,122 4.60% 905 4.34% Bank owned life insurance income (257) (1.05%) (242) (1.16%) Benefit from stock-based compensation (377) (1.55%) - - Section 162(m) limitation 322 1.32% - - Other adjustments, net 37 0.15% - - Total tax expense $ 5,971 24.47% $ 5,039 24.18% (1) Taxes in Florida made up the majority (greater than 50 %) of the tax effect in this category. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 22 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The Company’s deferred tax assets and deferred tax liabilities as of the dates indicated were (in thousands): June 30, 2026 December 31, 2025 Deferred tax assets: Net operating loss $ 191 $ 1,039 Allowance for credit losses 6,831 6,463 Lease liability 3,230 1,399 Unrealized losses on available for sale securities 10,826 10,270 Equity compensation 948 973 Accruals 324 721 Other, net 163 268 Deferred tax assets: 22,513 21,133 Deferred tax liabilities: Deferred loan cost (1,456) (1,520) Lease right of use asset (3,230) (1,399) Deferred expenses (256) (154) Cash flow hedge (24) (5) Depreciable property (35) (9) Deferred tax liabilities (5,001) (3,087) Net deferred tax assets $ 17,512 $ 18,046 The Company has approximately $ 5.3 million of state net operating loss carryforwards expiring in various amounts between 2032 and 2036 and which are limited to offset, to the extent permitted, future taxable earnings for of the Company. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The major tax jurisdictions where the Company files income tax returns are the U.S. federal jurisdiction and the State of Florida. With few exceptions, the Company is no longer subject to U.S. federal and state income tax return examinations by tax authorities for years before 2022. For the six months ended June 30, 2026 and 2025 the Company did no t have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. Additionally, no interest or penalties were recorded as a result of tax uncertainties. 6. OFF-BALANCE SHEET ARRANGEMENTS The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business in order to meet the financial needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include unfunded commitments under lines of credit, commitments to extend credit, and standby and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Company’s Consolidated Balance Sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for unused lines of credit and standby letters of credit is represented by the contractual amount of these commitments. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 23 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q A summary of the amounts of the Company's financial instruments with off-balance sheet risk are shown below at June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 December 31, 2025 Commitments to grant loans and unfunded lines of credit $ 205,573 $ 161,606 Standby and commercial letters of credit 3,646 2,700 Total $ 209,219 $ 164,306 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Unfunded lines of credit and revolving credit lines are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Company committed. Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit have fixed maturity dates and since many of them expire without being drawn upon, they do not generally present a significant liquidity risk to the Company. Changes in the ACL for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Beginning balance $ 957 $ 581 $ 752 $ 571 Provision for credit losses - off-balance sheet arrangements 380 134 585 144 Total $ 1,337 $ 715 $ 1,337 $ 715 7. DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk exposure. The notional amount of the interest rate swaps does not represent actual amounts exchanged by the parties. The amounts exchanged are determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as a Cash Flow Hedge As of June 30, 2026, the Company had two costless collar hedges with a notional amount of $ 100 million that were designated as cash flow hedges of two three-month brokered CDs. The derivatives are based on the USD SOFR overnight index and have a weighted average cap rate of 4.50 % and weighted average floor rate of 1.763 %, effectively creating a defined range of interest rate outcomes without requiring an upfront premium. The costless collar hedges have an average maturity of 1.04 years. As of December 31, 2025, the Company had two costless collar hedges with a notional amount of $ 100 million that were designated as cash flow hedge of two three-month brokered CDs. The derivatives are based on the USD SOFR overnight index and have a weighted average cap rate of 4.50 % and weighted average floor rate of 1.763 %, effectively creating a defined range of interest rate outcomes without requiring an upfront premium. The costless collar hedges had an average maturity of 1.54 years. During the three months ended June 30, 2026, one interest rate swap agreement matured. As of June 30, 2026, the Company had no outstanding interest rate swap agreements. As of December 31, 2025, the Company had one interest rate swap agreement with a notional aggregate amount of $ 25 million that was designated as cash flow hedge of a certificate of deposit. Under the agreement, the Company paid a USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 24 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q fixed rate of 3.47 % and received a variable rate based on the weighted ‑ average three ‑ months compounded USD SOFR. The swap had a maturity of 0.42 years. During the quarter ended December 31, 2025, the Company unwound a separate interest rate swap designated as a cash flow hedge of certificate of deposit with notional amount of $ 25 million. The decision to unwind this swap was driven by changes in interest rate forecasts and asset-liability management strategies. The early termination income to unwind the fair value swaps totaled $ 5 thousand. The original maturity of the cash flow interest rate swap that was unwound during the quarter was April 2026. The changes in fair value of these interest rate swaps are recorded in other assets or accrued interest and other liabilities with a corresponding recognition in other comprehensive income (loss) and subsequently reclassified to earnings when gains or losses are realized. Interest Rate Swaps The Company enters into interest rate swaps with its loan customers. The Company had 122 and 94 interest rate swaps with loan customers with an aggregate notional amount of $ 401.9 million and $ 310.8 million at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026, these interest rate swaps mature between 2027 and 2051. The Company entered into corresponding and offsetting derivatives with third parties. The fair value of the liability created by these derivatives requires the Company to provide the counterparty with funds to be held as collateral which the Company reports as other assets under the Consolidated Balance Sheets. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes. The following table reflects the Company’s interest rate swaps at the dates indicated (in thousands): Fair Value Notional Amount Collateral Amount Balance Sheet Location Asset Liability June 30, 2026: Derivatives designated as cash flow hedges: Interest rate swaps $ 100,000 $ - Other assets/Accrued interest and other liabilities $ 92 $ - Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans $ 401,882 $ 7,037 Other assets/Accrued interest and other liabilities $ 6,615 $ 6,615 December 31, 2025: Derivatives designated as cash flow hedges: Interest rate swaps $ 125,000 $ - Other assets/Accrued interest and other liabilities $ 14 $ 33 Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans $ 310,761 $ 5,769 Other assets/Accrued interest and other liabilities $ 9,753 $ 9,753 8. FAIR VALUE MEASUREMENTS Determination of Fair Value The Company uses fair value measurements to record fair-value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the fair value measurements accounting guidance, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 25 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Items Measured at Fair Value on a Recurring Basis AFS investment securities: When instruments are traded in secondary markets and quoted market prices do not exist for such securities, management generally relies on prices obtained from independent vendors or third-party broker-dealers. Management reviews pricing methodologies provided by the vendors and third-party broker-dealers in order to determine if observable market information is being utilized. Securities measured with pricing provided by independent vendors or third- party broker-dealers are classified within Level 2 of the hierarchy and often involve using quoted market prices for similar securities, pricing models or discounted cash flow analyses utilizing inputs observable in the market where available. Derivatives: The fair values of derivatives are measured with pricing provided by third-party participants and are classified within Level 2 of the hierarchy. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 26 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The following table represents the Company's assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 for each of the fair value hierarchy levels (in thousands): June 30, 2026 December 31, 2025 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. Government Agency $ - $ 10,855 $ - $ 10,855 $ - $ 14,144 $ - $ 14,144 Collateralized mortgage obligations - 67,099 - 67,099 - 75,828 - 75,828 Mortgage-backed securities - residential - 28,991 - 28,991 - 29,917 - 29,917 Mortgage-backed securities - commercial - 206,999 - 206,999 - 168,108 - 168,108 Municipal securities - 4,225 - 4,225 - 4,263 - 4,263 Bank subordinated debt securities - 14,690 - 14,690 - 15,230 - 15,230 Total - 332,859 - 332,859 - 307,490 - 307,490 Derivative assets - 6,707 - 6,707 - 9,767 - 9,767 Total assets at fair value $ - $ 339,566 $ - $ 339,566 $ - $ 317,257 $ - $ 317,257 Derivative liabilities $ - $ 6,615 $ - $ 6,615 $ - $ 9,786 $ - $ 9,786 Total liabilities at fair value $ - $ 6,615 $ - $ 6,615 $ - $ 9,786 $ - $ 9,786 Fair Value Measurements on a Nonrecurring Basis Collateral Dependent Loans Measured for Expected Credit Losses : Fair values of collateral-dependent real estate loans are based on recent real estate appraisals less estimated costs of sale, repossession, and/or holding costs. Appraisals are performed by independent third-party appraisers and may utilize a sales comparison approach, cost approach, income approach, or a combination of these methodologies. The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis at June 30, 2026 and December 31, 2025: June 30, 2026 Range Weighted Financial Instrument Fair Value Valuation Technique(s) Unobservable Input(s) Minimum Maximum average Collateral dependent loans - residential loans $ - Sales comparison approach Third-party appraisals and estimated valuation adjustments for disposition costs, senior liens, and SBA participation interests. 10.0% 100.0% 100% December 31, 2025 Range Weighted Financial Instrument Fair Value Valuation Technique(s) Unobservable Input(s) Minimum Maximum average Collateral dependent loans - residential loans $ 2,583 Sales comparison approach Third party appraisals 0% 0% 0% At June 30, 2026, the Company measured one collateral-dependent residential real estate loan at fair value on a nonrecurring basis. The fair value of the collateral-dependent loan was determined using the appraised value of the underlying real estate collateral, adjusted for the estimated impact of senior lien positions, SBA participation interests, and estimated costs to sell. The application of these adjustments resulted in a fair value below the amortized cost, which was recognized through a charge-off and reflected in the carrying value of the loan. The resulting fair value attributable to the Company's exposure was approximately of $ 0 . The loan had an outstanding amortized cost basis of approximately $ 64 thousand and a specific reserve of $ 64 thousand at June 30, 2026. As of December 31, 2025, collateral-dependent loans classified within Level 3 of the fair value hierarchy had an aggregate fair value of $ 2.6 million and no specific reserve, as the appraised value of the underlying collateral exceeded the outstanding loan balance. USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 27 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q As of June 30, 2026 and December 31, 2025, the Company did no t have any other assets or liabilities measured at fair value on a nonrecurring basis. Items Not Measured at Fair Value The following table presents the carrying amounts and estimated fair values of financial instruments not carried at fair value as of June 30, 2026 and December 31, 2025 (in thousands): Fair Value Hierarchy Carrying Amount Level 1 Level 2 Level 3 Fair Value Amount June 30, 2026: Financial Assets: Cash and due from banks $ 7,892 $ 7,892 $ - $ - $ 7,892 Interest-bearing deposits in banks $ 110,262 $ 110,262 $ - $ - $ 110,262 Investment securities held to maturity, net $ 136,127 $ - $ 124,177 $ - $ 124,177 Loans held for investment, net $ 2,295,684 $ - $ - $ 2,335,350 $ 2,335,350 Accrued interest receivable $ 11,670 $ - $ 1,512 $ 10,158 $ 11,670 Financial Liabilities: Non-interest bearing demand deposits $ 618,062 $ 618,062 $ - $ - $ 618,062 Savings and money market deposits $ 1,251,598 $ 1,251,598 $ - $ - $ 1,251,598 Interest-bearing demand deposits $ 49,721 $ 49,721 $ - $ - $ 49,721 Time deposits $ 532,890 $ - $ 531,300 $ - $ 531,300 FHLB advances $ 240,900 $ - $ 240,622 $ - $ 240,622 Subordinated notes, net $ 39,376 $ - $ 35,785 $ - $ 35,785 Accrued interest payable $ 3,334 $ - $ 3,334 $ - $ 3,334 December 31, 2025: Financial Assets: Cash and due from banks $ 6,027 $ 6,027 $ - $ - $ 6,027 Interest-bearing deposits in banks $ 32,450 $ 32,450 $ - $ - $ 32,450 Investment securities held to maturity, net $ 153,941 $ - $ 142,508 $ - $ 142,508 Loans held for investment, net $ 2,163,757 $ - $ - $ 2,210,781 $ 2,210,781 Accrued interest receivable $ 11,661 $ - $ 1,443 $ 10,218 $ 11,661 Financial Liabilities: Non-interest bearing demand deposits $ 583,860 $ 583,860 $ - $ - $ 583,860 Savings and money market deposits $ 1,186,422 $ 1,186,422 $ - $ - $ 1,186,422 Interest-bearing demand deposits $ 46,989 $ 46,989 $ - $ - $ 46,989 Time deposits $ 527,809 $ - $ 527,575 $ - $ 527,575 FHLB advances $ 158,250 $ - $ 158,342 $ - $ 158,342 Subordinated notes, net $ 39,300 $ - $ 40,131 $ - $ 40,131 Accrued interest payable $ 3,984 $ - $ 3,984 $ - $ 3,984 9. STOCKHOLDERS’ EQUITY Common Stock There were no stock repurchases during the three months ended June 30, 2026. During the six months ended June 30, 2026, the Company repurchased 53,475 shares of Class A common stock at a weighted average cost per share of $ 18.74 . The aggregate purchase price for these transactions was approximately $ 1.0 million, including transaction costs. These repurchases were made pursuant to the Company’s publicly announced share repurchase programs. At June 30, 2026, 474,834 shares remained authorized for repurchase under the Company’s 2024 share repurchase program. The Company’s 2022 share repurchase program has been fully utilized. There were no stock repurchases during the three months ended June 30, 2025. During the six months ended June 30, 2025, the Company repurchased 9,671 shares of Class A common stock at a weighted average cost per share of $ 17.91 . USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 28 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The aggregate purchase price for these transactions was approximately $ 174 thousand, including transaction costs. The repurchases were made pursuant to the Company’s publicly announced repurchase programs. As of June 30, 2025, 528,309 shares remained authorized for repurchase under the Company’s two stock repurchase programs. There were no restricted stock awards issued in the three months ended June 30, 2026. During the six months ended June 30, 2026, the Company issued 147,490 shares of Class common A stock to employees as restricted stock awards pursuant to the Company’s 2015 equity incentive plan. There were no restricted stock awards issued in the three months ended June 30, 2025. During the six months ended June 30, 2025, the Company issued 124,424 shares of Class A common stock to employees as restricted stock awards pursuant to the Company’s 2015 equity incentive plan. The number of shares of the Company’s Class A common stock issued and outstanding as of June 30, 2026 and December 31, 2025 were 18,459,470 and 18,137,885 , respectively. Dividends Declaration of dividends by the Board of Directors is required before dividend payments are made. The Company is limited in the amount of cash dividends that it may pay. Payment of dividends is generally limited to the Company’s net income for the current year combined with the Company’s retained income for the preceding two years, as defined by state banking regulations. However, for any dividend declaration, the Company must consider additional factors such as the amount of current period net income, liquidity, asset quality, capital adequacy and economic conditions at the Bank since the Bank is the primary source of funds to fund dividends paid by the Company. It is likely that these factors would further limit the amount of dividends which the Company could legally declare. In addition, bank regulators have the authority to prohibit banks and bank holding companies from paying dividends if they deem such payment to be an unsafe or unsound practice. As of June 30, 2026, the Company was not subject to any formal supervisory restrictions on its ability to pay dividends but will notify the Federal Reserve Bank of Atlanta in advance of any proposed dividend to the Company's stockholders in light of the Bank's negative retained earnings. In addition, under applicable FDIC regulations and policy, because the Bank has negative retained earnings, it must obtain the prior approval of the FDIC before effecting a cash dividend or other capital distribution from the Bank to the Company. The following table details the dividends declared and paid by the Company for the periods presented: Six Months Ended June 30, 2026 Declaration Date Record Date Payment Date Dividend Per Share Dividend Amount January 20, 2026 February 17, 2026 March 5, 2026 $ 0.125 $ 2.3 million April 20, 2026 May 15, 2026 June 5, 2026 $ 0.125 $ 2.3 million Six Months Ended June 30, 2025 Declaration Date Record Date Payment Date Dividend Per Share Dividend Amount January 21, 2025 February 14, 2025 March 5, 2025 $ 0.10 $ 2.0 million April 21, 2025 May 15, 2025 June 5, 2025 $ 0.10 $ 2.0 million The Bank exceeded all regulatory capital requirements and remained above “well-capitalized” guidelines as of June 30, 2026 and December 31, 2025. At June 30, 2026, the total risk-based capital ratio for the Bank was 13.68 %. See Note 12, Subsequent Events, for information regarding dividends declared in July 2026. 10. EARNINGS PER SHARE Earnings per share (“EPS”) for common stock is calculated using the two-class method required for participating securities. Basic EPS is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period USCB FINANCIAL HOLDINGS, INC. Notes to the Consolidated Financial Statements - Unaudited 29 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q determined using the treasury-stock method. For purposes of this calculation, common stock equivalents include common stock options which are only included in the calculation of diluted EPS when their effect is dilutive. The following table reflects the calculation of basic and diluted earnings per common share class for the three and six months ended June 30, 2026 and 2025 (in thousands, except share amounts): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Class A Class A Basic EPS Numerator: Net income available to common shares $ 9,078 $ 8,140 $ 18,429 $ 15,798 Denominator: Weighted average shares outstanding 18,346,946 20,059,264 18,280,860 20,040,205 Earnings per share, basic $ 0.49 $ 0.41 $ 1.01 $ 0.79 Diluted EPS Numerator: Net income available to common shares $ 9,078 $ 8,140 $ 18,429 $ 15,798 Denominator: Weighted average shares outstanding for basic EPS 18,346,946 20,059,264 18,280,860 20,040,205 Add: Dilutive effects of assumed exercises of stock options 162,626 236,530 162,626 259,380 Weighted avg. shares including dilutive potential common shares 18,509,572 20,295,794 18,443,486 20,299,585 Earnings per share, diluted $ 0.49 $ 0.40 $ 1.00 $ 0.78 Anti-dilutive stock options excluded from diluted EPS - - - - Net income has not been allocated to unvested restricted stock awards that are participating securities because the amounts that would be allocated are not material to earnings per share of common stock. Unvested restricted stock awards that are participating securities represent less than one percent of all of the outstanding shares of common stock for each of the periods presented. 11. LOSS CONTINGENCIES Loss contingencies, including claims and legal actions may arise in the ordinary course of business. In the opinion of management, none of these actions, either individually or in the aggregate, is expected to have a material adverse effect on the Company’s Consolidated Financial Statements. 12. SUBSEQUENT EVENTS Dividends On July 20, 2026, the Company announced that its Board of Directors declared its quarterly cash dividend. The dividend is in the amount of $ 0.125 per share of Class A common stock and will be paid on September 4, 2026, to stockholders of record as of the close of business on August 17, 2026. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q ## Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is designed to provide a better understanding of the consolidated financial condition and results of operations of the Company and the Bank, its wholly owned subsidiary, as of and for the three and six months ended June 30, 2026. This discussion and analysis is best read in conjunction with the unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q (“Form 10-Q”) and the audited consolidated financial statements and related notes included in the Annual Report on Form 10-K (“2025 Form 10-K”) filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2025. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management's expectations. Factors that could cause such differences are discussed in the sections entitled "Forward-Looking Statements" and Item 1A “Risk Factors" below in Part II hereof and in the 2025 Form 10-K filed with the SEC which is available at the SEC’s website www.sec.gov. Throughout this document, references to “we,” “us,” “our,” and “the Company” generally refer to USCB Financial Holdings, Inc. Forward-Looking Statements This Form 10-Q contains statements 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,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “seek,” “continue,” 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 and potential future additional balance sheet restructuring. 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; - 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 allowance for credit losses; - the efficiency and effectiveness of our internal control procedures and processes; - our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate; - adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; - deposit attrition and the level of our uninsured deposits; - legislative or regulatory changes, including the enactment of the One Big Beautiful Bill, and changes in accounting principles, policies, practices or guidelines; - the lack of a significantly diversified loan portfolio and our concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate; - the effects of climate change; - the concentration of ownership of our common stock; - fluctuations in the price of our 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; - the effects of potential new or increased tariffs , retaliatory tariffs, and trade restrictions; - the impacts of international hostilities and geopolitical events; - increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin; - the loss of key employees; - 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 in this Form 10-Q, the 2025 Form 10-K and other filings we make with the SEC. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q 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, any forward-looking statements included in this Form 10-Q 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 ocurring 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 described in the 2025 Form 10-K and in the reports the Company has filed or will file with the SEC. Overview The Company reported net income of $9.1 million or $0.49 per diluted share of common stock for the three months ended June 30, 2026 compared to $8.1 million or $0.40 per diluted share of common stock for the three months ended June 30, 2025. In evaluating our financial performance, the Company considers the level of and trends in net interest income, the net interest margin, the cost of deposits and borrowings, the level and composition of non-interest income and non-interest expense, performance ratios, asset quality ratios, regulatory capital ratios, and any significant event or transaction. Unless otherwise stated, all period comparisons in the bullet points below are calculated at or for the quarter ended June 30, 2026 compared to at or for the quarter ended June 30, 2025 and as of December 31, 2025 and annualized where appropriate: - Net interest income before provision for credit losses for the three months ended June 30, 2026 increased $3.4 million or 15.9% to $24.4 million from $21.0 million for the quarter ended June 30, 2025. - Net interest margin (“NIM”) expanded to 3.49% for the three months ended June 30, 2026 compared to 3.28% for the three months ended June 30, 2025. - Total assets surpassed $3.0 billion at June 30, 2026, representing an increase of $300.2 million or 11.0% from June 30, 2025 and an increase of $228.2 million or 16.5% annualized from December 31, 2025. - Total loans held for investment (net of deferred cost/fees) were $2.3 billion at June 30, 2026, representing an increase of $209.0 million or 9.9% from June 30, 2025 and an increase of $133.1 million or 12.3% annualized from December 31, 2025. - Total deposits were $2.5 billion at June 30, 2026, representing an increase of $116.6 million or 5.0% from June 30, 2025 and an increase of $107.2 million or 9.2% annualized from December 31, 2025. - Annualized return on average assets for the quarter ended June 30, 2026 was 1. 26% compared to 1.22% for the quarter ended June 30, 2025. - Annualized return on average stockholders’ equity for the quarter ended June 30, 2026 was 15.90% compared to 14.29% for quarter ended June 30, 2025. - The ACL to total loans was 1.15% at June 30, 2026 compared to 1.16% at December 31, 2025. - Non-performing loans to total loans was 0.09% at June 30, 2026 and 0.14% at December 31, 2025. - At June 30, 2026, the total risk-based capital ratios for the Company and the Bank were 13.88% and 13.68%, respectively. - Tangible book value per common share (a non-GAAP measure) was $12.64 at June 30, 2026, representing an increase of $1.11 or 9.6% annualized from $11.53 at June 30, 2025. At June 30, 2026, tangible book value per common share was negatively affected by ($1.70) due to an accumulated comprehensive loss of $31.4 million. At June 30, 2025, tangible book value per common share was negatively affected by ($2.08) due to an accumulated comprehensive loss of $41.8 million. See “Reconciliation and Management Explanation for Non-GAAP Financial Measures” included in this Form 10-Q for a reconciliation of this non-GAAP financial measure. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Critical Accounting Policies and Estimates The consolidated financial statements are prepared based on the application of U.S. Generally Accepted Accounting Principles (“GAAP”), the most significant of which are described in Note 1 “Summary of Significant Accounting Policies” in the Company’s 2025 Form 10-K and “Summary of Significant Accounting Policies” in Part I in this Form 10-Q. To prepare consolidated financial statements in conformity with US GAAP, management makes estimates, assumptions, and judgments based on available information. These estimates, assumptions, and judgments affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements and, as this information changes, actual results could differ from the estimates, assumptions and judgments reflected in the consolidated financial statements. In particular, management has identified accounting policies that, due to the estimates, assumptions and judgments inherent in those policies, are critical to an understanding of our consolidated financial statements. Management has presented the application of these policies to the Audit and Risk Committee of our Board of Directors. Non-GAAP Financial Measures This Form 10-Q includes financial information determined by methods other than in accordance with 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 section “Reconciliation and Management Explanation of Non-GAAP Financial Measures” included in this Form 10-Q. Segment Reporting Management monitors the revenue streams for all its various products and services. The identifiable segments are not material and operations are managed and financial performance is evaluated on an overall Company-wide basis. Accordingly, all the financial service operations are considered by management to be aggregated in one reportable operating segment. Results of Operations General The following tables present selected balance sheet, income statement, and profitability ratios for the dates and periods indicated (in thousands, except ratios): June 30, 2026 December 31, 2025 Consolidated Balance Sheets: Total assets $ 3,019,701 $ 2,791,540 Total loans (1) $ 2,322,385 $ 2,189,257 Total deposits $ 2,452,271 $ 2,345,080 Total stockholders' equity $ 233,238 $ 217,183 (1) Loan amounts include deferred fees/costs. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Consolidated Statements of Operations: Net interest income before provision for credit losses $ 24,387 $ 21,034 $ 46,435 $ 40,149 Total non-interest income $ 3,560 $ 3,370 $ 7,710 $ 7,086 Total non-interest expense $ 13,966 $ 12,634 $ 27,677 $ 24,686 Net income $ 9,078 $ 8,140 $ 18,429 $ 15,798 Profitability: Efficiency ratio 49.97% 51.77% 51.12% 52.26% Net interest margin 3.49% 3.28% 3.38% 3.18% The Company’s results of operations depend substantially on the levels of our net interest income and non-interest income. Other factors contributing to the results of operations include our provision for credit losses, the level of non-interest expense, and the provision for income taxes. Three months ended June 30, 2026 compared to the three months ended June 30, 2025 Net income increased $938 thousand to $9.1 million for the three months ended June 30, 2026 from $8.1 million for the same period in 2025. The $938 thousand or 11.5% increase in net income was primarily driven by growth in the average loan portfolio and expansion of net interest margin resulting from lower funding costs. These benefits were partially offset by higher non-interest expense, income tax expense, and provision for credit losses. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 Net income increased $2.6 million to $18.4 million for the six months ended June 30, 2026 from $15.8 million for the same period in 2025. The $2.6 million or 16.7% increase in the net income was primarily driven by higher income from a larger loan portfolio and, to a lesser extent, an increase in service fees. The increase in income was partially offset by an increase in non-interest expense, income tax expense, and provision for credit losses expense between periods. Net Interest Income Net interest income is the difference between interest earned on interest-earning assets and interest paid on interest- bearing liabilities and is the primary driver of core earnings. Interest income is generated from interest and dividends on interest-earning assets, including loans, investment securities and other short-term investments. Interest expense is incurred from interest paid on interest-bearing liabilities, including interest -bearing deposits, FHLB advances, subordinated debt, and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on loans and other interest-earning assets, (ii) the costs of deposits and other funding sources, (iii) net interest spread, and (iv) net interest margin. Net interest spread is equal to the difference between yields earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is equal to the annualized net interest income divided by average interest -earning assets. Because non-interest- bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the indirect benefit of these non-interest-bearing funding sources. Changes in market interest rates and interest rates we earn on interest-earning assets or pay on interest-bearing liabilities, as well as the volume and types of interest-earning assets and interest-bearing and non-interest-bearing liabilities, are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income. Our asset liability committee (“ALCO”) has in place asset-liability management techniques to manage major factors that affect net interest income and net interest margin. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The following table contains information related to average balances, average yields earned on assets, and average costs of liabilities for the periods indicated (dollars in thousands): Three Months Ended June 30, 2026 2025 Average (1) Balance Interest Yield/Rate (2) Average (1) Balance Interest Yield/Rate (2) Assets Interest-earning assets: Loans held for investment (3) $ 2,258,965 $ 34,899 6.20% $ 2,057,445 $ 31,946 6.23% Investment securities (4) 461,849 3,858 3.35% 449,624 3,432 3.06% Other interest-earnings assets 80,640 823 4.09% 63,974 776 4.87% Total interest-earning assets 2,801,454 39,580 5.67% 2,571,043 36,154 5.64% Non-interest-earning assets 99,271 106,155 Total assets $ 2,900,725 $ 2,677,198 Liabilities and stockholders' equity Interest-bearing liabilities: Interest-bearing demand deposits $ 51,711 311 2.41% $ 46,694 285 2.45% Savings and money market deposits 1,280,578 8,478 2.66% 1,211,513 9,410 3.12% Time deposits 524,474 4,628 3.54% 452,361 4,343 3.85% Total interest-bearing deposits 1,856,763 13,417 2.90% 1,710,568 14,038 3.29% FHLB advances 100,685 976 3.89% 116,527 1,082 3.72% Subordinated notes, net 39,351 800 8.15% - - - % Total interest-bearing liabilities 1,996,799 15,193 3.05% 1,827,095 15,120 3.32% Non-interest-bearing demand deposits 632,198 580,121 Other non-interest-bearing liabilities 42,795 41,490 Total liabilities 2,671,792 2,448,706 Stockholders' equity 228,933 228,492 Total liabilities and stockholders' equity $ 2,900,725 $ 2,677,198 Net interest income $ 24,387 $ 21,034 Net interest spread (5) 2.62% 2.32% Net interest margin (6) 3.49% 3.28% (1) Average balances - Daily average balances are used to calculate yields/rates. (2) Annualized. (3) Average loan balances include deferred fees/costs and non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs. (4) At fair value except for securities held to maturity. This amount includes FHLB stock. (5) Net interest spread is the weighted average yield on total interest-earning assets minus the weighted average rate on total interest-bearing liabilities. (6) Net interest margin is the ratio of net interest income to average total interest-earning assets. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Six Months Ended June 30, 2026 2025 Average Balance (1) Interest Yield/Rate (2) Average Balance (1) Interest Yield/Rate (2) Assets Interest-earning assets: Loans held for investment (3) $ 2,218,574 $ 67,688 6.15 % $ 2,022,345 $ 62,191 6.18 % Investment securities (4) 458,076 7,269 3.20 % 443,314 6,456 2.93 % Other interest-earnings assets 92,980 1,655 3.59 % 69,547 1,485 4.29 % Total interest-earning assets 2,769,630 76,612 5.58 % 2,535,206 70,132 5.56 % Non-interest earning assets 98,273 106,885 Total assets $ $2,867,903 $ 2,642,091 $ Liabilities and stockholders' equity Interest-bearing liabilities: Interest-bearing demand deposits $ 51,904 $ 621 2.41 % $ 50,133 $ 623 2.50 % Savings and money market deposits 1,268,565 16,611 2.64 % 1,205,305 18,745 3.13 % Time deposits 529,094 9,328 3.56 % 426,081 8,261 3.90 % Total interest-bearing deposits 1,849,563 26,560 2.90 % 1,681,519 27,629 3.30 % FHLB advances 105,339 2,016 3.86 % 127,674 2,354 3.71 % Subordinated notes, net 39,332 1,601 8.21 % - - - Total interest-bearing liabilities 1,994,234 30,177 3.05 % 1,809,193 29,983 3.33 % Non-interest bearing demand deposits 608,622 571,627 Other non-interest-bearing liabilities 39,449 37,247 Total liabilities 2,642,305 2,418,067 Stockholders' equity 225,598 224,024 Total liabilities and stockholders' equity $ $2,867,903 $ 2,642,091 Net interest income $ 46,435 $ 40,149 Net interest spread (5) 2.53 % 2.23 % Net interest margin (6) 3.38 % 3.18 % (1) Average balances - Daily average balances are used to calculate yields/rates. (2) Annualized. (3) Average loan balances include deferred fees/costs and non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs. (4) At fair value except for securities held to maturity. This amount includes FHLB stock. (5) Net interest spread is the weighted average yield on total interest-earning assets minus the weighted average rate on total interest-bearing liabilities. (6) Net interest margin is the ratio of net interest income to average total interest-earning assets. Three months ended June 30, 2026 compared to the three months ended June 30, 2025 Net interest income before the provision for credit losses was $24.4 million for the three months ended June 30, 2026, an increase of $3.4 million or 15.9%, from $21.0 million for the same period in 2025. This growth was primarily driven by higher income from a larger loan portfolio and lower rate s paid on interest -bearing deposits. This increase was partially offset by interest expense associated with the subordinated notes issued during 2025. The NIM was 3.49% for the three months ended June 30, 2026 and 3.28% for the same period in 2025. The 21-basis point increase in net interest margin was primarily attributable to a reduction in the weighted average rates paid on interest- bearing deposits, particularly savings and money market accounts, together with a favorable earning asset mix. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 Net interest income before the provision for credit losses was $46.4 million for the six months ended June 30, 2026, an increase of $6.3 million or 15.7%, from $40.1 million for the same period in 2025. This growth was primarily driven by higher income from a larger loan portfolio and a reduction in the weighted average rates paid on interest-bearing deposit between periods. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The NIM was 3.38% for the six months ended June 30, 2026 and 3.18% for the same period in 2025. The NIM expansion of 20 basis points reflects primarily the decrease in the weighted average interest rate paid on interest-bearing deposits, particularly in savings and money market deposits. Provision for Credit Losses The provision for credit losses represents a charge to earnings necessary to maintain an allowance for credit losses at a level that, in management's evaluation, is adequate to provide coverage for all expected credit losses. The provision for credit losses is impacted by variations in the size and composition of our loan and investment securities portfolio, recent historical and projected future economic conditions, our internal assessment of the credit quality of the loan and investment securities portfolios and net charge-offs. Three months ended June 30, 2026 compared to the three months ended June 30, 2025 The provision for credit losses was $1.3 million for the three months ended June 30, 2026 compared to $1.0 million for the same period in 2025. The increase in the provision for credit losses primarily reflects growth in the loan portfolio and off- balance sheet arrangements, which increased the level of estimated expected credit losses under CECL. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 The provision for credit losses was $2.1 million for the six months ended June 30, 2026 compared to $1.7 million for the same period in 2025. The increase in the provision for credit losses primarily reflects growth in the loan portfolio, which increased the level of estimated expected credit losses under CECL. Non-Interest Income Our services and products generate service charges and fees, mainly from our depository accounts. We also generate income from gain on sale of loans though the SBA 7a loan program and the monetization of fees earned through our loan swap program. In addition, we own and are beneficiaries of the life insurance policies covering certain of our key employees, which policies generate income from the increase in the cash surrender values. The following table presents the components of non-interest income for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Service fees $ 2,601 $ 2,402 $ 5,701 $ 4,733 Gain on sale of securities available for sale, net - - 14 - Gain on sale of loans held for sale, net - 151 106 676 Other non-interest income 959 817 1,889 1,677 Total non-interest income $ 3,560 $ 3,370 $ 7,710 $ 7,086 Three months ended June 30, 2026 compared to the three months ended June 30, 2025 Non-interest income for the three months ended June 30, 2026 increased $190 thousand or 5.6%, compared to the same period in 2025. This increase was primarily driven by a $322 thousand increase in loan prepayment penalty income reported under service fees compared to the same period last year. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 Non-interest income for the six months ended June 30, 2026 increased $624 thousand or 8.8%, compared to the same period in 2025. This increase was primarily driven by $1.6 million increase in income generated by the Company’s loan swap program reported under service fees in the Consolidated Statements of Operations. This increase was partially offset by a decrease in gain on sale of loans during the quarter ended June 30, 2026. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Non-Interest Expense The following table presents the components of non-interest expense for the dates indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Salaries and employee benefits $ 8,537 $ 7,954 $ 17,107 $ 15,590 Occupancy 1,369 1,337 2,685 2,621 Regulatory assessment and fees 397 396 881 817 Consulting and legal fees 583 263 1,144 456 Network and information technology services 524 564 1,084 1,069 Other operating 2,556 2,120 4,776 4,133 Total non-interest expense $ 13,966 $ 12,634 $ 27,677 $ 24,686 Three months ended June 30, 2026 compared to the three months ended June 30, 2025 Non-interest expense for the three months ended June 30, 2026 increased $1.3 million or 10.5%, compared to the same period in 2025. This increase was primarily driven by an increase of $583 thousand in salaries and employee benefits due to an increase of $236 thousand in salaries associated with additional full-time employees and an increase of $228 thousand in health insurance and 401(k) expense. Additionally , consulting and legal fees increase by $320 mainly due to $290 thousand reimbursement of legal expenses recognized during the second quarter of 2025, which reduced legal expense in the prior-year period. Other operating expenses increased by $436 thousand due mainly to $312 thousand excise tax expense paid in the quarter ended June 30, 2026. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 Non-interest expense for the six months ended June 30, 2026 increased $3.0 million or 12.1%, compared to the same period in 2025. The increase was primarily driven by an increase of $1.5 million in salaries and employee benefits, consisting of $666 thousand related to merit increases and new full-time employee salaries, $580 thousand increase in health insurance and 401(k) expense, and a $349 thousand increase in additional stock-based compensation expense. In addition, consulting and legal fees increased $688 thousand, primarily due to an increase of $405 thousand in legal fees due to the reimbursement of legal expenses recognized during the second quarter of 2025, which reduced legal expense in the prior- year period. Other non-interest expenses increased by $643 thousand, mainly due to increase of $285 thousand in excise tax expense and increase of $83 thousand in ATM expense for the six months ended June 30, 2026. Provision for Income Tax Fluctuations in the effective tax rate reflect the effect of the differences in the inclusion or deductibility of certain income and expenses for income tax purposes. Therefore, future decisions on the investments we choose will affect our effective tax rate. The cash surrender value of bank-owned life insurance policies covering key employees, purchasing municipal bonds, and overall levels of taxable income will be important elements in determining our effective tax rate. Three months ended June 30, 2026 compared to the three months ended June 30, 2025 Income tax expense for the three months ended June 30, 2026 was $3.6 million as compared to $2.6 million for the same period in 2025. The effective tax rate for the three months ended June 30, 2026 was 28.60% compared to 24.20% for the same period in 2025. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 Income tax expense for the six months ended June 30, 2026 was $6.0 million as compared to $5.0 million for the same period in 2025. The Company recognized a non-recurring $619 thousand income tax benefit in the first quarter of 2026 due to an adjustment to the deferred tax asset calculation from December 31, 2025. The effective tax rate for the six months ended June 30, 2026 was 24.47% compared to 24.18% for the same period in 2025. For a further discussion of income taxes, see Note 5 “Income Taxes” to the unaudited Consolidated Financial Statements in Item 1 of Part I of this Form 10-Q. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Analysis of Financial Condition Total assets at June 30, 2026 were $3.02 billion, an increase of $228.2 million, or 16.5% annualized, over total assets of $2.79 billion at December 31, 2025. Total loans, net of deferred fees/costs, increased $133.1 million, or 12.3% annualized, to $2.32 billion at June 30, 2026 compared to $2.19 billion at December 31, 2025. Total deposits increased by $107.2 million, or 9.2% annualized, to $2.45 billion at June 30, 2026 compared to $2.35 billion at December 31, 2025. Investment Securities The investment portfolio is used and managed to provide liquidity through cash flows, marketability and, if necessary, collateral for borrowings. The investment portfolio is also used as a tool to manage interest rate risk and the Company’s capital market risk exposure. The philosophy of the portfolio is to maximize the Company’s profitability taking into consideration the Company’s risk appetite and tolerance, manage its asset composition and diversification, and maintain adequate risk-based capital ratios. The investment portfolio is managed in accordance with the Board approved Asset and Liability Management (“ALM”) policy, which includes investment guidelines. Such policy is reviewed at least annually or more frequently if deemed necessary, depending on market conditions and/or unexpected events. The investment portfolio composition is subject to change depending on the funding and liquidity needs of the Company, and the interest risk management objective directed by the Asset-Liability Committee (“ALCO”). The portfolio of investments also can be used to modify the duration of the balance sheet. The allocation of cash into securities takes into consideration anticipated future cash flows (uses and sources) and all available sources of credit. Our investment portfolio consists primarily of securities issued by the U.S. Government and U.S. Government Agencies and mortgage-backed securities, collateralized mortgage obligations, corporate bonds, municipal securities, other debt securities all with varying contractual maturities and coupons. Due to the optionality embedded in these securities, the contractual maturities do not necessarily represent the expected life of the portfolio. Some of these securities will be called or paid down prior to maturity depending on capital market conditions and expectations. The investment portfolio is regularly reviewed by the Chief Financial Officer, Treasurer, and the ALCO of the Company to ensure an appropriate risk and return profile as well as for adherence to the Company’s investment policies. When evaluating AFS debt securities under ASC Topic 326, the Company evaluates whether the decline in fair value is attributable to credit losses or other factors like interest rate risk, using both quantitative and qualitative analyses, including company performance analysis, review of credit ratings, vintage bonds, remaining payment terms, prepayment speeds and analysis of macro-economic conditions. As a result of this evaluation, the Company concluded that no allowance was required on AFS securities as of June 30, 2026. At quarter end, HTM securities included $136.1 million of U.S. Government and U.S. Government Agencies issued bonds and mortgage-backed securities. Because of the explicit and/or implicit guarantee on these bonds, the Company holds no reserves on these holdings. Using the PD/LGD methodology and considering that there are no HTM securities exposed to non ‑ government credit risk, the Company estimated an allowance for credit losses (“ACL”) of $0 as of June 30, 2026. For periods where there was an ACL for HTM securities recorded the book value for debt securities classified as HTM represents amortized cost less ACL. Aggregate AFS and HTM investment securities increased $7.6 million to $469.0 million at June 30, 2026 from $461.4 million at December 31, 2025. As of June 30, 2026, investment securities with a market value of $56.3 million were pledged to secure public deposits. The investment portfolio does not contain any tax-exempt securities. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The following table presents the amortized cost and fair value of investment securities for the dates indicated (dollars in thousands): June 30, 2026 December 31, 2025 Available-for-sale: Amortized Cost Fair Value Amortized Cost Fair Value U.S. Government Agency $ 11,883 $ 10,855 $ 15,169 $ 14,144 Collateralized mortgage obligations 84,406 67,099 92,871 75,828 Mortgage-backed securities - residential 34,909 28,991 35,865 29,917 Mortgage-backed securities - commercial 215,345 206,999 174,622 168,108 Municipal securities 5,191 4,225 5,196 4,263 Bank subordinated debt securities 14,578 14,690 15,284 15,230 $ 366,312 $ 332,859 $ 339,007 $ 307,490 Held-to-maturity: U.S. Government Agency $ 37,328 $ 34,129 $ 41,158 $ 37,970 Collateralized mortgage obligations 48,762 43,821 51,431 46,786 Mortgage-backed securities - residential 35,188 32,522 37,221 34,718 Mortgage-backed securities - commercial 14,849 13,705 15,088 14,051 Corporate bonds - - 9,045 8,983 $ 136,127 $ 124,177 $ 153,943 $ 142,508 Allowance for credit losses - securities held-to-maturity - (2) Securities held-to maturity, net of allowance for credit losses $ 136,127 $ 153,941 The following table shows the weighted average yields, categorized by contractual maturity, for investment securities as of June 30, 2026 (in thousands, except yields): Within 1 year After 1 year through 5 years After 5 years through 10 years After 10 years Total Amortized Cost Yield Amortized Cost Yield Amortized Cost Yield Amortized Cost Yield Amortized Cost Yield Available-for-sale: U.S. Government Agency $ - - $ - - $ - - $ 11,883 3.43% $ 11,883 3.43% Collateralized mortgage obligations - - - - - - 84,406 1.56% 84,406 1.56% MBS - residential - - - - - - 34,909 2.43% 34,909 2.43% MBS - commercial - - 4,996 4.55% 4,906 4.81% 205,443 4.38% 215,345 4.40% Municipal securities - - - - 5,191 1.87% - - 5,191 1.87% Bank subordinated debt securities - - 2,000 7.86% 12,578 5.81% - - 14,578 6.09% $ - - $ 6,996 5.50% $ 22,675 4.69% $ 336,641 3.44% $ 366,312 3.56% Held-to-maturity: U.S. Government Agency $ 4,988 1.24% $ 18,041 1.31% $ 1,483 2.85% $ 12,816 1.85% $ 37,328 1.55% Collateralized mortgage obligations - - - - - - 48,762 1.65% 48,762 1.65% MBS - residential 21 2.98% 8,874 1.65% - - 26,293 2.29% 35,188 2.13% MBS - commercial - - 3,034 1.63% - - 11,815 2.57% 14,849 2.37% $ 5,009 1.25% $ 29,949 1.44% $ 1,483 2.85% $ 99,686 1.95% $ 136,127 1.83% Loans Loans are the largest category of interest-earning assets on the unaudited Consolidated Balance Sheets, and usually provide higher yields than the remainder of the interest -earning assets. Higher yields typically carry greater inherent credit and liquidity risks in comparison to lower yield assets. The Company manages and mitigates such risks in accordance with the credit and ALM policies, risk tolerance and balance sheet composition. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The following table shows the loan portfolio composition as of the dates indicated (in thousands): June 30, 2026 December 31, 2025 Total Percent of Total Total Percent of Total Residential real estate $ 356,747 15.4 % $ 307,692 14.1 % Commercial real estate 1,314,367 56.6 % 1,244,835 57.0 % Commercial and industrial 300,265 13.0 % 295,548 13.5 % Correspondent banks 137,912 6.0 % 127,968 5.9 % Consumer and other 207,404 9.0 % 207,215 9.5 % Total gross loans 2,316,695 100.0 % 2,183,258 100.0 % Plus: Deferred fees/costs 5,690 5,999 Total loans net of deferred fees/costs 2,322,385 2,189,257 Less: Allowance for credit losses 26,701 25,500 Total net loans $ 2,295,684 $ 2,163,757 Total loans, net of deferred fees/costs, increased by $133.1 million, or 12.3% annualized to $2.32 billion, at June 30, 2026 compared to December 31, 2025. The commercial real estate loan segment had the most significant balance increase compared to December 31, 2025. Our loan portfolio continues to grow, with commercial real estate lending being the primary focus which represented approximately 56.6% of the total gross loan portfolio as of June 30, 2026. Our loan growth strategy since inception has been reflective of the market in which we operate and of our strategic plan as approved by the Board. The growth experienced in recent years is primarily due to implementation of our relationship-based banking model and the success of our relationship managers in competing for new business in a highly competitive metropolitan area. Many of our larger loan clients have long-term relationships with members of our senior management team or our relationship managers that date back to former institutions. From a liquidity perspective, our loan portfolio provides us with additional liquidity due to repayments or unexpected prepayments. The following table shows maturities and sensitivity to interest rate changes of the loan portfolio at June 30, 2026 (in thousands): Due in 1 year or less Due in 1 to 5 years Due after 5 to 15 years Due after 15 years Total Residential real estate $ 7,064 $ 83,310 $ 65,616 $ 200,757 $ 356,747 Commercial real estate 71,847 590,427 647,640 4,453 1,314,367 Commercial and industrial 12,401 111,248 133,331 43,285 300,265 Correspondent banks 137,912 - - - 137,912 Consumer and other 3,579 1,238 21,910 180,677 207,404 Total gross loans $ 232,803 $ 786,223 $ 868,497 $ 429,172 $ 2,316,695 Interest rate sensitivity: Fixed interest rates $ 187,594 $ 201,973 $ 159,167 $ 302,650 $ 851,384 Floating or adjustable rates 45,209 584,250 709,330 126,522 1,465,311 Total gross loans $ 232,803 $ 786,223 $ 868,497 $ 429,172 $ 2,316,695 The information presented in the table above is based upon the contractual maturities of the individual loans, which may be subject to renewal at their contractual maturity. Renewals will depend on approval by our credit department and balance sheet composition at the time of the analysis, as well as any modification of terms at the loan’s maturity. Additionally, maturity concentrations, loan duration, prepayment speeds and other interest rate sensitivity measures are discussed, reviewed, and analyzed by the ALCO. Decisions on term /rate modifications are discussed as well. As of June 30, 2026, approximately 63% of the loan portfolio has adjustable/variable rates and 37% of the loan portfolio has fixed rates. The adjustable/variable rate loans re-price to different benchmarks and tenors and in different periods of time. By contractual characteristics, there are no material concentrations on anniversary repricing. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Asset Quality Our asset quality grading analysis estimates the capability of the borrower to repay the contractual obligation of the loan agreement as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans. Internal credit risk grades are reviewed at least once a year, and more frequently as needed. Internal credit risk ratings may change based on management’s assessment of the results from the annual review, portfolio monitoring, and other developments observed with borrowers. The internal credit risk grades used by the Company to assess the credit worthiness of a loan are shown below: Pass – Loans indicate different levels of satisfactory financial condition and performance. Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligator or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified at substandard, with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss – Loans classified as loss are considered uncollectible. Loan credit exposures by internally assigned grades are as follows for the dates indicated (in thousands): June 30, 2026 Pass Special Mention Substandard Doubtful Total Residential real estate $ 353,869 $ 1,370 $ 1,508 $ - $ 356,747 Commercial real estate 1,301,144 11,520 1,703 - 1,314,367 Commercial and industrial 298,081 773 1,411 - 300,265 Correspondent banks 137,912 - - - 137,912 Consumer and other 207,404 - - - 207,404 $ 2,298,410 $ 13,663 $ 4,622 $ - $ 2,316,695 December 31, 2025 Pass Special Mention Substandard Doubtful Total Residential real estate $ 304,276 $ 916 $ 2,500 $ - $ 307,692 Commercial real estate 1,230,823 11,613 2,399 - 1,244,835 Commercial and industrial 293,169 907 1,472 - 295,548 Correspondent banks 127,968 - - - 127,968 Consumer and other 207,215 - - - 207,215 $ 2,163,451 $ 13,436 $ 6,371 $ - $ 2,183,258 USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Non-Performing Assets The following table presents non-performing assets as of the dates shown (in thousands, except ratios): June 30, 2026 December 31, 2025 Non-accrual loans $ 2,148 $ 3,138 Loans past due over 90 days and still accruing - - Total non-performing loans $ 2,148 $ 3,138 Other real estate owned - - Total non-performing assets $ 2,148 $ 3,138 Asset quality ratios: Allowance for credit losses to total loans 1.15% 1.16% Allowance for credit losses to non-performing loans 1,243% 813% Non-performing loans to total loans 0.09% 0.14% Non-performing assets include all loans categorized as non-accrual, other real estate owned (“OREO”) and other repossessed assets. Problem loans for which the collection or liquidation in full is reasonably uncertain are placed on a non- accrual status. This determination is based on current existing facts concerning collateral values and the paying capacity of the borrower. When the collection of the full contractual balance is unlikely, the loan is placed on non-accrual to avoid overstating the Company’s income for a loan with increased credit risk. If the principal or interest on a commercial loan becomes due and unpaid for 90 days or more, the loan is placed on non-accrual status as of the date it becomes 90 days past due and remains in non-accrual status until it meets the criteria for restoration to accrual status. Residential loans, on the other hand, are placed on non-accrual status when the principal or interest becomes due and unpaid for 120 days or more and remains in non-accrual status until it meets the criteria for restoration to accrual status. Restoring a loan to accrual status is possible when the borrower resumes payment of all principal and interest payments for a period of six consecutive months and the Company has a documented expectation of repayment of the remaining contractual principal and interest or the loan becomes secured and in the process of collection. The Company may grant a loan concession to a borrower experiencing financial difficulties. This determination is performed during the annual review process or whenever problems surface regarding the borrower’s ability to repay in accordance with the original terms of the loan or line of credit. The concessions are given to the debtor in various forms, including interest rate reductions, principal forgiveness, extension of maturity date, waiver or deferral of payments and other concessions intended to minimize potential losses. For further discussion of non-performing loans and borrowers experiencing financial difficulties, see Note 3 “Loans” to the unaudited Consolidated Financial Statements in Item 1 of Part 1 of this Form 10-Q. Allowance for Credit Losses The ACL on loans represents an amount that, in management's evaluation, is adequate to provide coverage for all expected future credit losses on outstanding loans. Additionally, qualitative adjustments are made to the ACL when, based on management’s judgment, there are factors impacting the allowance estimate not considered by the quantitative calculations. See Note 3 “Loans” in Item 1 of Part 1 of this Form 10-Q for more information on the ACL. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q The following table presents ACL on loans and net charge-offs to average loans by type for the periods indicated (in thousands): Residential Real Estate Commercial Real Estate Commercial and Industrial Correspondent Banks Consumer and Other Total Three Months Ended June 30, 2026 Beginning balance $ 5,270 $ 9,932 $ 5,330 $ 1,018 $ 4,552 $ 26,102 Provision for credit losses (1) 222 184 407 76 (2) 887 Recoveries 8 - 1 - - 9 Charge-offs (296) - - - (1) (297) Ending Balance $ 5,204 $ 10,116 $ 5,738 $ 1,094 $ 4,549 $ 26,701 Average loans $ 354,678 $ 1,275,161 $ 292,088 $ 128,762 $ 208,276 $ 2,258,965 Net charge-offs (recoveries) to average loans (2) 0.33% - % (0.00)% - % 0.00% 0.05% Six Months Ended June 30, 2026 Beginning balance $ 5,908 $ 9,476 $ 4,814 $ 1,015 $ 4,287 $ 25,500 Provision for credit losses (3) (422) 640 919 79 269 1,485 Recoveries 14 - 5 - - 19 Charge-offs (296) - - - (7) (303) Ending Balance $ 5,204 $ 10,116 $ 5,738 $ 1,094 $ 4,549 $ 26,701 Average loans $ 329,736 $ 1,271,120 $ 264,440 $ 128,783 $ 224,495 $ 2,218,574 Net charge-offs (recoveries) to average loans (2) 0.17% - % (0.00)% - % 0.01% 0.03% (1) Provision for credit losses excludes a $380 thousand provision due to unfunded commitments included in accrued interest and other liabilities. (2) Annualized. (3) Provision for credit losses excludes a $585 thousand provision due to unfunded commitments included in accrued interest and other liabilities and a $2 thousand release related to investment securities held to maturity. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Residential Real Estate Commercial Real Estate Commercial and Industrial Correspondent Banks Consumer and Other Total Three Months Ended June 30, 2025 Beginning balance $ 5,115 $ 9,197 $ 4,434 $ 817 $ 5,177 $ 24,740 Provision for credit losses (1) 356 294 73 57 115 895 Recoveries 6 - 1 - 1 8 Charge-offs - - - - (710) (710) Ending Balance $ 5,477 $ 9,491 $ 4,508 $ 874 $ 4,583 $ 24,933 Average loans $ 299,857 $ 1,167,698 $ 265,465 $ 101,776 $ 222,649 $ 2,057,445 Net charge-offs (recoveries) to average loans (2) (0.01)% - % (0.00)% - % 1.28% 0.14% Six Months Ended June 30, 2025 Beginning balance $ 5,121 $ 8,788 $ 4,633 $ 654 $ 4,874 $ 24,070 Provision for credit losses (3) 344 703 (131) 220 431 1,567 Recoveries 12 - 6 - 1 19 Charge-offs - - - - (723) (723) Ending Balance $ 5,477 $ 9,491 $ 4,508 $ 874 $ 4,583 $ 24,933 Average loans $ 300,560 $ 1,155,436 $ 261,377 $ 94,516 $ 210,456 $ 2,022,345 Net charge-offs (recoveries) to average loans (2) (0.01)% - % (0.00)% - % 0.69% 0.07% (1) Provision for credit losses excludes a $134 thousand provision due to unfunded commitments included in accrued interest and other liabilities and a $2 thousand provision related to investment securities held to maturity. (2) Annualized. (3) Provision for credit losses excludes $144 thousand provision due to unfunded commitments included in accrued interest and a $1 thousand provision related to investment securities held to maturity. The Federal Open Market Committee (“FOMC”) economic forecasts as of June 30, 2026, showed moderate improvement in the forecast for real GDP and a slight improvement in the unemployment rate. Fannie Mae House Price Index (“HPI”) forecast reflected an improvement in national housing prices. The Company continued to adjust the HPI index effect on the 1-4 Family loan portfolio with a qualitative factor because Florida housing prices are performing better than national levels. The Q-factor scorecard was updated based on the latest portfolio stress test and the resulting maximum loss calculation. Our ACL included residential loans. To assess the potential impact of changes in qualitative factors related to these loans, management performed a sensitivity analysis. The Company evaluated the impact of the HPI used in calculating expected losses on the residential loan segment. As of June 30, 2026, for every 100 basis point increase in the HPI, the forecast reduces reserves by approximately $241 thousand and about 1 basis points to the reserve coverage ratio, everything else being constant. This sensitivity analysis provides a hypothetical result to assess the sensitivity of the ACL and does not represent a change in management’s judgement. For comparative purposes, in prior periods the Company stress tested the commercial real estate loan subcategory based on collateral code (1st lien, commercial property) rather than the non ‑ owner ‑ occupied subsegment. As of June 30, 2026, the Company stress tested two qualitative factors within the non ‑ owner ‑ occupied subsegment of the commercial real estate loan portfolio, as it represents the largest segment of the Company’s portfolio. The analysis evaluated the impact of changing the qualitative factors from no risk to maximum loss to assess the sensitivity of the allowance for credit losses (“ACL”). This stress resulted in a hypothetical increase of $6.0 million, or 22.3%, in the ACL. The sensitivity analysis is intended solely to illustrate the responsiveness of the ACL to changes in qualitative assumptions and does not represent a change in management’s judgment. For comparative purposes, in prior periods the Company stress tested the commercial real estate loan subcategory based on collateral code (1st lien, commercial property) rather than the non ‑ owner ‑ occupied subsegment. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Bank-Owned Life Insurance As of June 30, 2026, the combined cash surrender value of all bank-owned life insurance (“BOLI”) policies was $60.4 million. Changes in cash surrender value are recorded to other non-interest income in the unaudited Consolidated Statements of Operations. The Company has BOLI policies with five insurance carriers. The Company is the beneficiary of these policies. Deposits Customer deposits are the primary funding source for the Bank’s growth. Through our network of banking centers, we offer a competitive array of deposit accounts and treasury management services designed to meet our customers’ business needs. Our primary deposit customers are small-to-medium sized businesses (“SMBs”), and the personal business of the owners and operators of these SMBs, as well as the retail/consumer relationships of the employees of these businesses. The following table presents the daily average balance and average rate paid on deposits by category for the periods presented (in thousands, except ratios): Three Months Ended June 30, 2026 2025 Average Balance Average Rate Paid Average Balance Average Rate Paid Non-interest bearing demand deposits $ 632,198 0.00% $ 580,121 0.00% Interest-bearing demand deposits 51,711 2.41% 46,694 2.45% Saving and money market deposits 1,280,578 2.66% 1,211,513 3.12% Time deposits 524,474 3.54% 452,361 3.85% Total $ 2,488,961 2.16% $ 2,290,689 2.46% The Company has a granular deposit portfolio with outstanding balances comprised of 57.1% in commercial deposits, 26.0% in personal deposits, 9.1% in public funds (which are partially collateralized) and 7.8% in brokered deposits. The brokered deposits balance at June 30, 2026 was $190.9 million and $256.8 million at December 31, 2025. As of June 30, 2026, the Company has approximately 21 thousand deposit accounts with the majority of which were personal accounts, approximately 12 thousand or 58.6%. The estimated average account size in our deposit portfolio was approximately $118 thousand as of June 30, 2026. The amount of uninsured deposits are estimated based on the FDIC deposit insurance limit of $250 thousand per account holder for all deposit accounts at the Company. The total estimated percentage of uninsured deposits was 55% at June 30, 2026 and 51% at December 31, 2025. The Company offers Insured Cash Sweep (“ICS”) and Certificate of Deposit Account Registry Service (“CDARS”) deposit products to fully insure our clients. The deposit balance in ICS/CDARS was $176.1 million at June 30, 2026 and was $183.2 million at December 31, 2025. The following table shows scheduled maturities of uninsured time deposits as of June 30, 2026 (in thousands): June 30, 2026 Three months or less $ 68,697 Over three through six months 17,702 Over six through twelve months 57,687 Over twelve months 51,597 $ 195,683 Other Liabilities The Company collects from commercial and residential loan customers funds which are held in escrow for future payment of real estate taxes and insurance. These escrow funds are disbursed by the Company directly to the insurance companies and taxing authority of the borrower. Escrow funds are recorded as accrued interest and other liabilities in the consolidated balance sheet. As of June 30, 2026, escrow balances totaled $23.5 million compared to $8.1 million at December 31, 2025. The increase reflects the normal growth in escrow accounts pending tax and insurance payments. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Borrowings FHLB Advances As a member of the FHLB of Atlanta, we are eligible to obtain advances with various terms and conditions. This accessibility to additional funding allows us to efficiently and timely meet both expected and unexpected outgoing cash flows and collateral needs without adversely affecting either daily operations or the financial condition of the Company. As of June 30, 2026, we had $112.0 million of fixed-rate advances and $128.9 million of daily-rate advances outstanding with the FHLB, with weighted average interest rates of 3.82% and 3.88%, maturing in July 2026 and September 2026 for the fixed-rate advances and May 2027 for the daily-rate advance , as detailed in the table below. The following table presents the FHLB advances as of June 30, 2026 (in thousands): June 30, 2026 Interest Rate Type of Rate Maturity Date Amount 3.82% Fixed July 13, 2026 37,000 3.82% Fixed July 23, 2026 5,000 3.81% Fixed July 29, 2026 30,000 3.84% Fixed September 09, 2026 40,000 3.88% Daily May 24, 2027 128,900 $ 240,900 The Company has also established Federal Funds lines of credit with our upstream correspondent banks and the Federal Reserve Bank of Atlanta Discount Window to manage temporary fluctuations in our daily cash balances. As of June 30, 2026, there were no outstanding balances with any of these additional liquidity sources. Subordinated Notes On August 14, 2025, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers pursuant to which the Company sold and issued $40.0 million in aggregate principal amount of its 7.625% Fixed-to-Floating Rate Subordinated Notes due 2035. The Notes were issued by the Company to the purchasers at a price equal to 100% of their face amount. The subordinated debt was originally issued at a cost of $760 thousand. The subordinated debt, net of amortized expenses, was $39.4 million, reflecting the scheduled expense recognition over the term of the instruments. The subordinated notes are presented net of these costs on the consolidated balance sheet. The Notes were offered and sold by the Company in a private placement transaction in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D thereunder. For additional information, see the Company Form 8-K filed on August 14, 2025. Off-Balance Sheet Arrangements We engage in various financial transactions in our operations that, under GAAP, may not be included on the balance sheet. To meet the financing needs of our customers, we may include commitments to extend credit and standby letters of credit. To a varying degree, such commitments involve elements of credit, market, and interest rate risk in excess of the amount recognized in the consolidated balance sheets. We maintain an allowance for off-balance sheet credit risk which is recorded under accrued interest and other liabilities on the unaudited Consolidated Balance Sheets. The ACL related to unfunded commitments at June 30, 2026 was $1.3 million and at December 31, 2025 was $752 thousand. The increase was primarily driven by an increase in unfunded commitments. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect actual future cash funding requirements. The following table presents lending related commitments outstanding as of the dates indicated (in thousands ): June 30, 2026 December 31, 2025 Commitments to grant loans and unfunded lines of credit $ 205,573 $ 161,606 Standby and commercial letters of credit 3,646 2,700 Total $ 209,219 $ 164,306 Commitments to extend credit are agreements to lend funds to a client, as long as there is no violation of any condition established in the contract, for a specific purpose. Commitments generally have variable interest rates, fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn, the total commitment amounts disclosed above do not necessarily represent future cash requirements. Unfunded lines of credit represent unused portions of credit facilities to our current borrowers that represent no change in credit risk in our portfolio. Lines of credit generally have variable interest rates. The maximum potential amount of future payments we could be required to make is represented by the contractual amount of the commitment, less the amount of any advances made. Letters of credit are conditional commitments issued by us to guarantee the performance of a client to a third party. In the event of nonperformance by the client in accordance with the terms of the agreement with the third party, we would be required to fund the commitment. If the commitment is funded, we would be entitled to seek recovery from the client from the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash or marketable securities. Asset and Liability Management Committee Members of senior management and our Board make up the asset and liability management committee, or ALCO. Senior management is responsible for ensuring that Board approved strategies and policies for managing and mitigating risks are appropriately executed within the designated lines of authority and responsibility in a timely manner. ALCO oversees the establishment, approval, implementation, and review of interest rate risk, management, and mitigation strategies, ALM related policies, ALCO procedures and risk tolerances and appetite. While some degree of Interest Rate Risk (“IRR”) is inherent to the banking business, we believe our ALCO implements sound risk management practices to identify, quantify, monitor, and limit IRR exposures. When assessing the scope of IRR exposure and impact on the consolidated balance sheet, cash flows and consolidated statement of operations, management considers both earnings and economic impacts. Asset price variations, deposit volatility and reduced earnings or outright losses could adversely affect the Company’s liquidity, performance, and capital adequacy. Income simulations are used to assess the impact of changing rates on earnings under different interest rates scenarios, yield curve shapes and time horizons. These simulations utilize both instantaneous and parallel changes in the level of interest rates, as well as non-parallel changes such as changing slopes (flat and steepening) and twists of the yield curve. Static simulation models are based on current exposures and assume a constant balance sheet with no new growth. Dynamic simulation is also utilized to have a more comprehensive assessment on IRR. This simulation relies on assumptions regarding changes in existing lines of business, new business, management strategies and client expected behavior. To have a more complete picture of IRR, the Company also evaluates the economic value of equity (“EVE”). This assessment allows us to measure the degree to which the economic values will change under different interest rate scenarios (parallel and non-parallel). The economic value approach focuses on a longer-term time horizon and captures all future cash flows expected from existing assets and liabilities. The economic value model utilizes a static approach in that the analysis does not incorporate new business; rather, the analysis shows a snapshot in time of the risk inherent in the balance sheet. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Market and Interest Rate Risk Management According to our ALCO model, as of June 30, 2026, both the static and dynamic ALM simulations indicate that the Bank’s balance sheet remains liability sensitive in Year 1, positioning the Bank to benefit in a declining rate environment as liabilities reprice more quickly than assets, resulting in favorable Net Interest Income (NII) outcomes. Beginning in Year 2, both models transition toward an asset sensitive posture, reflecting projected balance sheet growth, continued variable rate loan production, and changes in balance sheet mix over time. This progression is consistent with management’s forward looking assumptions embedded in the dynamic model. The Bank’s interest rate risk profile is fairly neutral, with no significant change in overall sensitivity. While the funding mix shifted modestly, core deposits remained essentially flat, and the Bank’s Year 1 liability-sensitive positioning was unchanged. All modeled NII and EVE results continued to remain within ALCO policy limits across all rate shock scenarios. Management’s interest rate positioning reflects a deliberate balance between earnings stability and balance sheet flexibility, particularly given the Bank’s relationship driven deposit base and variable rate lending profile within the South Florida market. The ALM model incorporates a wide range of assumptions, including asset prepayment speeds, non maturity deposit beta and decay assumptions, pricing correlations, deposit truncations, and key interest rate drivers. Given the inherent estimation involved in these assumptions, actual results may differ from modeled outcomes, particularly as static measures do not incorporate potential management actions in response to changes in market conditions or customer behavior. EVE sensitivity remains compliant with policy guidelines, with greater volatility observed in rising rate scenarios, driven by asset and liability convexity. In higher rate environments, the value of longer term assets declines more rapidly, particularly as loan prepayments slow, while certain funding sources reprice less immediately. Conversely, in declining rate scenarios, faster prepayments and quicker asset repricing help mitigate downside EVE exposure. Importantly, EVE volatility declined quarter over quarter, reflecting balance sheet actions taken during the period and an overall reduction in structural interest rate risk. Overall, the Bank remains well positioned to manage current interest rate volatility, with limited exposure under rising rate scenarios and favorable positioning in a declining rate environment. Management continues to actively review ALM results and retains the flexibility, consistent with ALCO policy, to adjust asset and liability duration through balance sheet strategies as market conditions evolve. Results and related strategies are reviewed quarterly with ALCO and adjusted as appropriate. Liquidity Liquidity is defined as a Company’s capacity to meet its cash and collateral obligations at a reasonable cost. Maintaining an adequate level of liquidity depends on the Company’s ability to efficiently meet both expected and unexpected cash flow and collateral needs without adversely affecting either daily operations or the financial condition of the Company. Liquidity risk is the risk that we will be unable to meet our short-term and long-term obligations as they become due because of an inability to liquidate assets or obtain relatively adequate funding. The Company’s obligations, and the funding sources used to meet them, depend significantly on our business mix, balance sheet structure and composition, credit quality of our assets and the cash flow profiles of our on- and off-balance sheet obligations. In managing inflows and outflows, management regularly monitors situations that can give rise to increased liquidity risk. These include funding mismatches, market constraints on the ability to convert assets (particularly investments) into cash or in accessing sources of funds (i.e., market liquidity), pledging assets and contingent liquidity events. Changes in macroeconomic conditions, as well as exposure to credit, market, operational, legal, cybersecurity risk and reputational risks, could have an unexpected impact on the Company’s liquidity risk profile and are factored into the assessment of liquidity and the ALM framework. Management has established a comprehensive and holistic management process for identifying, measuring, monitoring and mitigating liquidity risk. Liquidity management also reflects the Bank’s granular mix of consumer and commercial relationships, which management believes enhances funding stability and mitigates reliance on more rate sensitive wholesale funding sources. Due to its critical importance to the viability of the Company, liquidity risk management is integrated into our risk management processes, Contingency Funding Plan and ALM policy. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Critical elements of our liquidity risk management include: effective corporate governance consisting of oversight by the Board and ALCO, and active involvement of senior management; appropriate strategies, policies, procedures, and limits used to identify and mitigate liquidity risk; comprehensive liquidity risk measurement and monitoring systems (including assessments of the current and prospective cash flows or sources and uses of funds) that are commensurate with the complexity and business activities of the Company; active management of intraday liquidity and collateral; an appropriately diverse mix of existing and potential future funding sources; adequate levels of highly liquid marketable securities free of legal, regulatory, or operational impediments, that can be used to meet liquidity needs in stressful situations; comprehensive contingency funding plans that sufficiently address potential adverse liquidity events and emergency cash flow requirements; and internal controls and internal audit processes sufficient to determine the adequacy of the institution’s liquidity risk management process. We expect funds to be available from several basic banking activity sources, including the core deposit base, the repayment and maturity of loans and investment security cash flows. Other potential funding sources include federal funds purchased, brokered certificates of deposit, listing certificates of deposit, Fed Funds lines and borrowings from the FHLB Atlanta. Accordingly, our liquidity resources were at sufficient levels to fund loans and meet other cash needs as necessary. As of June 30, 2026, the Company had $428 million in available liquidity on balance sheet, including $314 million in unpledged securities (excluding Unencumbered HTM securities) available to use as collateral and $114 million in excess cash. The Company had an additional $309 million in off-balance sheet liquidity, excluding access to brokered deposits and other off-balance sheet sources of funding. Management believes current liquidity levels remain appropriate relative to the Bank’s risk appetite, balance sheet size, and anticipated funding needs under both base case and stressed scenarios. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Capital Adequacy As of June 30, 2026, the Company and the Bank were well capitalized under the FRB’s and FDIC’s prompt corrective action framework. We also follow the capital conservation buffer framework, and as of June 30, 2026, we exceeded the capital conversation buffer in all capital ratios, according to our actual ratios. The following table presents the capital ratios for the Company and the Bank at the dates indicated (in thousands, except ratios). The Company's consolidated regulatory capital amounts and ratios: Actual Minimum Capital Requirements To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30, 2026 Total risk-based capital $ 325,362 13.88 % $ 187,482 8.00 % $ 234,352 10.00 % Tier 1 risk-based capital $ 257,948 11.01 % $ 140,611 6.00 % $ 187,482 8.00 % Common equity tier 1 capital $ 257,948 11.01 % $ 105,458 4.50 % $ 152,329 6.50 % Leverage ratio $ 257,948 8.81 % $ 117,132 4.00 % $ 146,415 5.00 % December 31, 2025 Total risk-based capital $ 305,225 13.91 % $ 175,565 8.00 % $ 219,457 10.00 % Tier 1 risk-based capital $ 239,671 10.92 % $ 131,674 6.00 % $ 175,565 8.00 % Common equity tier 1 capital $ 239,671 10.92 % $ 98,756 4.50 % $ 142,647 6.50 % Leverage ratio $ 239,671 8.46 % $ 113,285 4.00 % $ 141,606 5.00 % The Bank's regulatory capital amounts and ratios: Actual Minimum Capital Requirements To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30, 2026 Total risk-based capital $ 320,052 13.68 % $ 187,185 8.00 % $ 233,981 10.00 % Tier 1 risk-based capital $ 292,014 12.48 % $ 140,389 6.00 % $ 187,185 8.00 % Common equity tier 1 capital $ 292,014 12.48 % $ 105,291 4.50 % $ 152,088 6.50 % Leverage ratio $ 292,014 9.97 % $ 117,144 4.00 % $ 146,430 5.00 % December 31, 2025 Total risk-based capital $ 299,596 13.67 % $ 175,387 8.00 % $ 219,234 10.00 % Tier 1 risk-based capital $ 273,342 12.47 % $ 131,541 6.00 % $ 175,387 8.00 % Common equity tier 1 capital $ 273,342 12.47 % $ 98,655 4.50 % $ 142,502 6.50 % Leverage ratio $ 273,342 9.65 % $ 113,296 4.00 % $ 141,620 5.00 % Impact of Inflation Our Consolidated Financial Statements and related notes have been prepared in accordance with U.S. GAAP, which require the measurement of financial position and operating results in terms of historical dollars, without considering the changes in the relative purchasing power of money over time due to inflation. The impact of inflation is mostly reflected in the increased cost of operations; inflation can negatively impact overhead expenses and other variable expenses. Unlike most industrial companies, nearly all our assets and liabilities are monetary in nature. As a result, interest rates have a greater impact on our performance than the effects of inflation. Periods of high inflation are often accompanied by relatively higher interest rates, and periods of low inflation are accompanied by relatively lower interest rates. Inflationary conditions may also influence customer deposit behavior, loan demand, and pricing dynamics, which management considers as part of its ongoing balance sheet and earnings planning processes. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q Reconciliation and Management Explanation of Non -GAAP Financial 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. The following table reconciles the non-GAAP financial measurement of operating net income available to common shareholders for the periods presented (in thousands, except per share data): USCB FINANCIAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands) As of or For the Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Pre-tax pre-provision ("PTPP") income: (1) Net income $ 9,078 $ 9,351 $ 1,363 $ 8,939 $ 8,140 Plus: Income tax expense 3,636 2,335 1,911 2,866 2,599 Plus: Provision for credit losses 1,267 801 480 105 1,031 PTPP income $ 13,981 $ 12,487 $ 3,754 $ 11,910 $ 11,770 PTPP return on average assets: (1) PTPP income $ 13,981 $ 12,487 $ 3,754 $ 11,910 $ 11,770 Average assets $ 2,900,725 $ 2,834,717 $ 2,799,863 $ 2,798,115 $ 2,677,198 PTPP return on average assets (2) 1.93% 1.79% 0.53% 1.69% 1.76% Operating net income: (1) Net income $ 9,078 $ 9,351 $ 1,363 $ 8,939 $ 8,140 Less: Net gains (losses) on sale of securities - 14 (7,498) (28) - Less: Tax effect on sale of securities - (4) 1,900 7 - Plus: Tax (benefit) liability expense from prior periods - (619) (3) 1,096 (4) - - Operating net income $ 9,078 $ 8,722 $ 8,057 $ 8,960 $ 8,140 Operating return on average assets: (1) Operating net income $ 9,078 $ 8,722 $ 8,057 $ 8,960 $ 8,140 Average assets $ 2,900,725 $ 2,834,717 $ 2,799,863 $ 2,798,115 $ 2,677,198 Operating return on average assets (2) 1.26% 1.25% 1.14% 1.27% 1.22% Operating return on average equity: (1) Operating net income $ 9,078 $ 8,722 $ 8,057 $ 8,960 $ 8,140 Average equity $ 228,933 $ 222,226 $ 212,393 $ 225,316 $ 228,492 Operating return on average equity (2) 15.90% 15.92% 15.05% 15.78% 14.29% Operating Revenue: (1) Net interest income $ 24,387 $ 22,048 $ 22,207 $ 21,274 $ 21,034 Plus: Non-interest income 3,560 4,150 (4,178) 3,684 3,370 Less: Net gains (losses) on sale of securities - 14 (7,498) (28) - Operating revenue $ 27,947 $ 26,184 $ 25,527 $ 24,986 $ 24,404 Operating Efficiency Ratio: (1) Total non-interest expense $ 13,966 $ 13,711 $ 14,275 $ 13,048 $ 12,634 Operating revenue $ 27,947 $ 26,184 $ 25,527 $ 24,986 $ 24,404 Operating efficiency ratio 49.97% 52.36% 55.92% 52.22% 51.77% (1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company. (2) Annualized. (3) The Company recognized a $619 thousand income tax benefit in first quarter of 2026 due to an adjustment to the deferred tax asset calculation from 2025. (4) State tax liability expenses for 2024 and for the first three quarters of 2025 were recognized during the fourth quarter of 2025. The state tax expense is related to taxes due on interest income on loans whose collateral are located outside of the State of Florida. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q USCB FINANCIAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands, except per share data) As of or For the Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Tangible book value per common share (at period-end): (1)(4) Total stockholders' equity $ 233,238 $ 223,246 $ 217,183 $ 209,095 $ 231,583 Less: Intangible assets - - - - - Tangible stockholders' equity (3) $ 233,238 $ 223,246 $ 217,183 $ 209,095 $ 231,583 Total shares issued and outstanding (at period-end): Total common shares issued and outstanding 18,459,470 18,257,400 18,137,885 18,107,385 20,078,385 Tangible book value per common share (2) $ 12.64 $ 12.23 $ 11.97 $ 11.55 $ 11.53 Operating diluted net income per common share: (1) Operating net income $ 9,078 $ 8,722 $ 8,057 $ 8,960 $ 8,140 Total weighted average diluted shares of common stock 18,509,572 18,454,006 18,348,725 19,755,820 20,295,794 Operating diluted net income per common share: $ 0.49 $ 0.47 $ 0.44 $ 0.45 $ 0.40 Tangible Common Equity/Tangible Assets (1)(4) Tangible stockholders' equity (3) $ 233,238 $ 223,246 $ 217,183 $ 209,095 $ 231,583 Tangible total assets (3) $ 3,019,701 $ 2,845,735 $ 2,791,540 $ 2,767,945 $ 2,719,474 Tangible Common Equity/Tangible Assets 7.72% 7.84% 7.78% 7.55% 8.52% (1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company. (2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options. (3) Since the Company has no intangible assets, tangible stockholders’ equity and tangible total assets are the same amounts as stockholders’ equity and total assets, (4) The decrease in total stockholders’ equity in September 2025 was primarily driven by the repurchase of 2.0 million shares of Class A common stock, as previously disclosed. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q ## Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, we are not required to provide the information required by this item. ## Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our President and Chief Executive Officer and our Chief Financial Officer, we evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)) as of June 30, 2026. Based on that evaluation, management believes that, as of the end of the period covered by this Form 10-Q, the Company's disclosure controls and procedures were effective to collect, process, and disclose the information required to be disclosed in the reports filed or submitted under the Exchange Act within the required time periods. Changes in Internal Control Over Financial Reporting There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Limitations on Effectiveness of Controls and Procedures In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q PART II ## Item 1. Legal Proceedings We are not currently subject to any material legal proceedings. We are from time to time subject to claims and litigation arising in the ordinary course of business. These claims and litigation may include, among other things, allegations of violation of banking and other applicable regulations, competition law, labor laws and consumer protection laws, as well as claims or litigation relating to intellectual property, securities, breach of contract and tort. We intend to defend ourselves vigorously against any pending or future claims and litigation. There can be no assurance that any future legal proceedings to which we are a party will not be decided adversely to our interests and have a material adverse effect on our financial condition and operations. ## Item 1A. Risk Factors For detailed information about certain risk factors that could materially affect our business, financial condition, or future results, see “Part I, Item 1A – Risk Factors” of the 2025 Form 10-K.There have been no material changes to the risk factors disclosed in the 2025 Form 10-K. ## Item 2. Unregistered Sales of Equity Securities and Use of Proceeds (a) None. (b) Not applicable. (c) The Company’s repurchases of equity securities for the three months ended June 30, 2026 were as follows: Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares that May Yet Be Purchased Under Plans or Programs (1) Period April 1 - 30, 2026 - $ - - 474,834 May 1 - 31, 2026 - $ - - 474,834 June 1 - 30, 2026 - $ - - 474,834 Total - $ - - (1) As of June 30, 2026 there were 474,834 shares available for repurchase under the outstanding share repurchase program: - On January 24, 2022, the Company announced its initial stock repurchase program to repurchase up to 750,000 shares of Class A common stock. The Company completed the repurchase of all remaining shares authorized under this program during the quarter ended June 30, 2026. - On April 22, 2024, the Company announced the adoption of a second repurchase program to repurchase up to 500,000 shares of Class A common stock to commence upon completion of its first repurchase program. ## Item 3. Defaults Upon Senior Securities (a) Not applicable (b) Not applicable ## Item 4. Mine Safety Disclosures Not applicable. ## Item 5. Other Information (a) Not applicable (b) Not applicable USCB Financial Holdings, Inc. Q2 2026 Form 10-Q (c) During the three months ended June 30, 2026, none of the Company’s directors or Section 16 reporting persons adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of the SEC’s Regulation S-K). USCB Financial Holdings, Inc. Q2 2026 Form 10-Q .Item 6. Exhibits Exhibit No. Description of Exhibit [2.1](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex21.htm) [Agreement and Plan of Share Exchange, dated December 27, 2021, by and between U.S. Century Bank and USCB](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex21.htm) [Financial Holdings, Inc. (incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (File No.](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex21.htm) [001-41196) filed with the Securities and Exchange Commission on December 30, 2021).](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex21.htm) [3.1](http://www.sec.gov/Archives/edgar/data/1901637/000156276223000333/exhibit31.htm) [Articles of Incorporation, as amended, of USCB Financial Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the](http://www.sec.gov/Archives/edgar/data/1901637/000156276223000333/exhibit31.htm) [Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (File No. 001-41196) filed with the](http://www.sec.gov/Archives/edgar/data/1901637/000156276223000333/exhibit31.htm) [Securities and Exchange Commission on August 11, 2023).](http://www.sec.gov/Archives/edgar/data/1901637/000156276223000333/exhibit31.htm) [3.2](http://www.sec.gov/Archives/edgar/data/1901637/000092708923000110/ex_549234.htm) [Amended and Restated Bylaws of USCB Financial Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant’s](http://www.sec.gov/Archives/edgar/data/1901637/000092708923000110/ex_549234.htm) [Current Report on Form 8-K (File No. 001-41196) filed with the Securities and Exchange Commission on July 26, 2023).](http://www.sec.gov/Archives/edgar/data/1901637/000092708923000110/ex_549234.htm) [4.1](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex41.htm) [Side Letter Agreement, dated December 30, 2021, between USCB Financial Holdings, Inc., U.S. Century Bank, Priam](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex41.htm) [Capital Fund II, LP, Patriot Financial Partners II, L.P. and Patriot Financial Partners Parallel II, L.P. (incorporated by](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex41.htm) [reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 001-41196) filed with the Securities and](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex41.htm) [Exchange Commission on December 30, 2021).](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex41.htm) [4.2](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex42.htm) [Registration Rights Agreement, dated March 17, 2015, between U.S. Century Bank, Priam Capital Fund II, LP, Patriot](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex42.htm) [Financial Partners II, L.P., Patriot Financial Partners Parallel II, L.P., and certain other shareholders of U.S. Century Bank](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex42.htm) [(incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 001-41196) filed with the](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex42.htm) [Securities and Exchange Commission on December 30, 2021).](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex42.htm) [4.3](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex43.htm) [Assignment and Assumption of Agreement, dated December 30, 2021, between U.S. Century Bank and USCB Financial](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex43.htm) [Holdings, Inc. (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No. 001-41196)](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex43.htm) [filed with the Securities and Exchange Commission on December 30, 2021).](http://www.sec.gov/Archives/edgar/data/0001901637/000119312521369812/d628417dex43.htm) [4.4](http://www.sec.gov/Archives/edgar/data/1901637/000156276222000137/exhibit44.htm) [Description of USCB Financial Holdings, Inc.’s securities (incorporated by reference to Exhibit 4.4 to the Registrant's Annual](http://www.sec.gov/Archives/edgar/data/1901637/000156276224000061/exhibit44.htm) [Report on Form 10-K (File No. 001-41196) filed with the Securities and Exchange Commission on March 22, 2024).](http://www.sec.gov/Archives/edgar/data/1901637/000156276224000061/exhibit44.htm) [4.5](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [Indenture, dated August 14, 2025 by and between USCB Financial Holdings, Inc. and Wilmington Trust, National](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No.](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [001-41196) filed with the Securities and Exchange Commission on August 14, 2025).](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [4.6](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [Form of 7.625% Fixed-to-Floating Rate Subordinated Note due 2035 (included as Exhibit A-1 and Exhibit A-2 to the](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [Indenture referenced in Exhibit 4.5 hereto (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [Form 8-K (File No. 001-41196) filed with the Securities and Exchange Commission on August 14, 2025).](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex41.htm) [4.7](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001901637/000092708926000084/uscbf20260427_8k.htm) [Mutual Termination Agreement, dated as of April 29, 2026, between USCB Financial Holdings, Inc., U.S.](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001901637/000092708926000084/uscbf20260427_8k.htm) [Century Bank, Patriot Financial Partners II, L.P. and Patriot Financial Partners Parallel II, L.P. (incorporated by](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001901637/000092708926000084/uscbf20260427_8k.htm) [reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 001-41196) filed with the](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001901637/000092708926000084/uscbf20260427_8k.htm) [Securities and Exchange Commission on May 1, 2026).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001901637/000092708926000084/uscbf20260427_8k.htm) [10.1](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex101.htm) [Form of Subordinated Note Purchase Agreement, dated August 14, 2025, by and among USCB Financial Holdings, Inc.](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex101.htm) [and certain qualified institutional buyers (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex101.htm) [Form 8-K (File No. 001-41196) filed with the Securities and Exchange Commission on August 14, 2025).](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex101.htm) [10.2](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex102.htm) [Form of Registration Rights Agreement, dated August 14, 2025, by and among USCB Financial Holdings, Inc. and certain](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex102.htm) [institutional buyers (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 001-](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex102.htm) [41196) filed with the Securities and Exchange Commission on August 14, 2025).](http://www.sec.gov/Archives/edgar/data/1901637/000119312525180879/d23435dex102.htm) [10.3](exhibit103.htm) [Change in Control Agreement between U.S. Century Bank and Sergio Garrido dated as of July 6, 2026.](exhibit103.htm) *,** [31.1](exhibit311.htm) [Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.](exhibit311.htm) ** [31.2](exhibit312.htm) [Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.](exhibit312.htm) ** [32.1](exhibit321.htm) [Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.](exhibit321.htm) *** [32.2](exhibit322.htm) [Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.](exhibit322.htm) *** 101 The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 formatted in Inline XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Changes in Stockholders’ Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited), (vi) Notes to Consolidated Financial Statements (unaudited). 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) * ** Management Contract or Compensatory plan or arrangement. Filed herewith. *** Furnished hereby. USCB Financial Holdings, Inc. Q2 2026 Form 10-Q SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. USCB FINANCIAL HOLDINGS, INC. (Registrant) Signature Title Date /s/ Luis de la Aguilera Chairman, President and Chief Executive Officer August 7, 2026 Luis de la Aguilera (Principal Executive Officer) /s/ Robert Anderson Executive Vice President and Chief Financial Officer August 7, 2026 Robert Anderson (Principal Financial Officer and Principal Accounting Officer) --- ## EX-10.3 SEC source: [exhibit103.htm](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit103.htm) Exhibit 10.3 CHANGE IN CONTROL AGREEMENT THIS CHANGE IN CONTROL AGREEMENT (the “Agreement”) is made as of the 6 th day of July 202 6 by and between U.S. Century Bank, with Corporate Offices located at 2301 NW 87 th Ave., Doral, FL 33172 (hereinafter called the “Bank”) and Mr. Sergio Garrido (“Executive”). WHEREAS, as consideration for Executive's continued employment with the Bank as Senior Vice President and Chief Credit Officer, the parties hereto, intending to be legally bound, agree as follows: 1. Payment Upon Change in Control. In the event of a Change in Control (as defined herein) during the term of this Agreement, the Bank agrees to pay Executive a cash payment equal to one times the Base Annual Salary of Executive received during the one (1) year period prior to the Change in Control, to be paid within thirty (30) days of the consummation of the Change in Control. The Bank’s provision of this benefit to Executive is made without regard to whether, or for how long, Executive remains employed with the surviving company subsequent to the Change in Control. 2. Change in Control. “Change in Control” shall mean the occurrence of an event described in (i), (ii), (iii), or (iv) below: (i) Any person or group (within the meaning of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than USCB Financial Holdings, Inc. (the “Company”), an affiliate of the Company or a trustee or other fiduciary holding securities under an employee benefit plan of the Company or the Bank or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, becomes the beneficial owner (within the meaning of Rule 13(d)(3) under the Exchange Act, directly or indirectly (which shall include securities issuable upon conversion, exchange or otherwise) or securities representing 50% or more of the combined voting power of the Company’s or the Bank’s then-outstanding securities entitled generally to vote for the election of directors. (ii) Consummation of an agreement to merge or consolidate with another entity (other than a majority-controlled subsidiary of the Company) unless the Company's stockholders immediately before the merger or consolidation own more than 50% of the combined voting power of the resulting entity's voting securities (giving effect to the conversion or exchange of securities issued in the merger or consolidation to the other entity that are convertible or exchangeable for voting securities) entitled generally to vote for the election of directors. (iii) Consummation of an agreement (including, without limitation, an agreement of liquidation) to sell or otherwise dispose of all or substantially all of the business or assets of the Company or the Bank; or (iv) Individuals who, as of the date hereof, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason during any 12 month period to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election or nomination for election by the stockholders of the Company is approved by a vote of at least a majority of directors then constituting the Incumbent Board shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board. Notwithstanding the foregoing, no event shall constitute a Change in Control unless such event shall also constitute a change in control as defined in Section 409A of the Internal Revenue Code of 1986, as amended. 3. Severability. Should any provision of this Agreement be declared or determined by any court of competent jurisdiction to be unenforceable or invalid for any reason, the validity of the remaining parts, term or provisions of this Agreement shall not be affected thereby and the invalid or unenforceable part, term or provision shall be deemed not to be a part of this Agreement. 4. Applicable Law/Forum. This Agreement has been entered into and shall be governed by and construed under the internal laws of the State of Florida, without regard to conflicts of laws or principles. All suits, proceedings and other actions relating to, arising out of or in connection with this Agreement will be submitted solely to the in personam jurisdiction of the United States District Court for the Southern District of Florida (“Federal Court”) or to the Circuit Court in Broward County or Miami­Dade County. Executive hereby waives any claims against or objections to such in personam jurisdiction and venue. 5. Notice. All notices and other communications hereunder shall be in writing and shall be deemed to have been given only if and when personally delivered or three (3) business days after mailing, postage prepaid, registered or certified mail, or when delivered (and receipted for) by an express delivery service, addressed in each case as follows. As to notices provided to the Bank, notices shall be sent to the Human Resources Department at the address of the Bank listed in the introductory paragraph of this Agreement. As to notices to Executive, notices shall be sent to the address provided below in the signature block hereto. Executive and the Bank may change the address for the giving of notices. 6. Complete Agreement. This Agreement represents the complete agreement between Executive and the Bank regarding the subject matter of this Agreement. All prior agreements between the Bank and Executive with respect to the specific matters agreed to herein are hereby superseded and shall have no force or effect. This Agreement is in no way dependent upon the performance of any other contract or agreement that may have been or may be entered into between Executive and the Bank and remains in effect during the pendency of this Agreement. As such, the breach or alleged breach of any other contract or agreement is no defense to enforcement of this Agreement. 7. Amendments in Writing. No amendment, modification, waiver, or other change to this Agreement shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be changed and signed by the Bank and Executive, and each such change shall be effective only in the specific instance and for the specific purpose for which it is given. No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by Executive and the Bank. 8. Term of the Agreement. Subject to the terms hereof, the term of this Agreement shall commence on the date hereof and terminate on December 31, 2028 (the “Initial Term”). Prior to December 31, 2026 (the “Extension Anniversary Date”) and each annual anniversary thereafter of the Extension Anniversary Date, the Board of Directors of the Bank or the Compensation Committee thereof shall consider and review (with appropriate corporate documentation thereof, and after taking into account all relevant factors, including Executive’s performance hereunder) a one-year extension of the term of this Agreement. If the Board of Directors or the Compensation Committee thereof approve such an extension, then the term of this Agreement shall be so extended as of the Extension Anniversary Date or any relevant annual anniversary of such date unless Executive gives written notice to the Bank of Executive’s election not to extend the term, with such written notice to be given not less than thirty (30) days prior to the Extension Anniversary Date or any relevant annual anniversary of such date. If the Board of Directors elects not to extend the term, it shall give written notice of such decision to Executive not less than thirty (30) days prior to the Extension Anniversary Date or any annual anniversary of such date. If any party gives timely notice that the term will not be extended as of the Extension Anniversary Date or any annual anniversary of such date, then this Agreement and the rights and obligations provided herein shall terminate at the conclusion of its remaining term. References herein to the term of this Agreement shall refer both to the Initial Term and successive terms as the term of this Agreement is extended in accordance with the terms hereof. 9. Regulatory Actions . The following provisions shall be applicable to the parties hereto or any successor thereto, and shall be controlling in the event of a conflict with any other provision of this Agreement, including without limitation Section 1 hereof: (i) If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs pursuant to notice served under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”)(12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the Bank’s obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank will: (i) pay Executive all or part of the compensation withheld while its obligations under this Agreement were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. (ii) If Executive is removed from office and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C. §§1818(e)(4) and (g)(1)), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of Executive and the Bank as of the date of termination shall not be affected. (iii) If the Bank is in default, as defined in Section 3(x)(1) of the FDIA (12 U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate as of the date of default, but vested rights of Executive and the Bank as of the date of termination shall not be affected. (iv) Notwithstanding any other provision of this Agreement to the contrary, any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the FDIA (12 U.S.C. §1828(k)) and 12 C.F.R. Part 359. 10. Nature of Obligations. Nothing contained herein shall be deemed to create other than a terminable at will employment relationship between the Bank and Executive, and the Bank may terminate Executive’s employment at any time, subject to providing any payments specified herein in accordance with the terms hereof. 11. Acknowledgment. Executive acknowledges that Executive has read this Agreement in full and completely understands all of its terms and obligations and enters into this Agreement freely and voluntarily, and after having the opportunity to consult with representatives of Executive's own choosing and that Executive's agreement is freely given. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above mentioned. U.S. Century Bank Executive By: /s/Jessica Goldberg /s/Sergio Garrido Title: Senior Vice President/Director of Print Name: Sergio Garrido Human Resources Address: [Redacted] --- ## EX-31.1 SEC source: [exhibit311.htm](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit311.htm) Exhibit 31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Luis de la Aguilera, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of USCB Financial Holdings, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Luis de la Aguilera Luis de la Aguilera Chairman, President and Chief Executive Officer Date: August 7, 2026 --- ## EX-31.2 SEC source: [exhibit312.htm](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit312.htm) Exhibit 31.2 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Robert Anderson, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of USCB Financial Holdings, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Robert Anderson Robert Anderson Chief Financial Officer Date: August 7, 2026 --- ## EX-32.1 SEC source: [exhibit321.htm](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit321.htm) Exhibit 32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes -Oxley Act of 2002 In connection with the Quarterly Report of USCB Financial Holdings, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Luis de la Aguilera, as President and Chief Executive Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes -Oxley Act of 2002, that: 1) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and 2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Luis de la Aguilera Luis de la Aguilera Chairman, President and Chief Executive Officer Date: August 7, 2026 --- ## EX-32.2 SEC source: [exhibit322.htm](https://www.sec.gov/Archives/edgar/data/1901637/000156276226000090/exhibit322.htm) Exhibit 32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes -Oxley Act of 2002 In connection with the Quarterly Report of USCB Financial Holdings, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert Anderson, as Chief Financial Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 1) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and 2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Robert Anderson Robert Anderson Chief Financial Officer Date: August 7, 2026