USCB FINANCIAL HOLDINGS, INC.USCB

USCB FINANCIAL HOLDINGS, INC. Debt Disclosure

10-KFiled Mar 14, 20252 min read
8.
 
BORROWINGS
Borrowed funds
 
consist of
 
fixed-rate advances
 
from the
 
FHLB. At
 
December 31, 2024,
 
FHLB advances
 
were $
163.0
million and at December 31, 2023 were $
183.0
 
million.
The following table presents outstanding FHLB advances
 
at December 31, 2024 and 2023 (in thousands):
The
 
FHLB
 
holds
 
a
 
blanket
 
lien
 
on
 
the
 
Company's
 
loan
 
portfolio
 
that
 
may
 
be
 
pledged
 
as
 
collateral
 
for
 
outstanding
advances, subject
 
to eligibility
 
under the
 
borrowing agreement.
 
The Company
 
may also
 
choose to
 
assign cash
 
balances
held at the FHLB as additional collateral. See Note 3 “Loans”
 
for further discussion on pledged loans.
The Board
 
of Governors
 
of the Federal
 
Reserve System,
 
on March
 
12, 2023,
 
announced the
 
creation of
 
a new
 
Bank
Term
 
Funding Program (“BTFP”). The BTFP offered loans of up to one year in length to banks, savings associations, credit
unions,
 
and
 
other
 
eligible
 
depository
 
institutions
 
pledging
 
U.S.
 
Treasuries,
 
U.S.
 
Agency
 
debt
 
and
 
mortgage-backed
securities, and other qualifying assets as collateral. The
 
BTFP program ceased making new loans as of March
 
2024.
 
On January
 
12, 2024,
 
the Company
 
borrowed $
80.0
 
million at
 
a rate
 
of
4.81
%, maturing
 
on
January 10, 2025
, under
the BTFP
 
program. Subsequently,
 
the Company
 
paid off
 
$
80.0
 
million in
 
borrowings under
 
the BTFP
 
program during
 
the
third quarter
 
2024. The
 
original maturity
 
of this
 
borrowing under
 
the BTFP
 
program was
 
January 2025,
 
and there
 
are no
remaining borrowings by the Company under this program.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2024
Interest Rate
Type of Rate
Maturity Date
Amount
2.05
%
Fixed
March 27, 2025
$
10,000
1.07
%
Fixed
July 18, 2025
6,000
3.76
%
Fixed
January 24, 2028
11,000
3.77
%
Fixed
April 25, 2028
50,000
3.68
%
Fixed
September 13, 2027
21,000
3.79
%
Fixed
March 23, 2026
20,000
4.65
%
Fixed
February 13, 2025
45,000
$
163,000
At December 31, 2023
Interest Rate
Type of Rate
Maturity Date
Amount
1.04
%
Fixed
July 30, 2024
$
5,000
1.07
%
Fixed
July 18, 2025
6,000
2.05
%
Fixed
March 27, 2025
10,000
3.76
%
Fixed
January 24, 2028
11,000
3.77
%
Fixed
April 25, 2028
50,000
5.57
%
Fixed
December 26, 2024
101,000
$
183,000

Historical Timeline

Fiscal YearFiled
2024Mar 14, 2025Showing above
2023Mar 22, 2024
2021Mar 24, 2022

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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