USCB FINANCIAL HOLDINGS, INC.USCB

USCB FINANCIAL HOLDINGS, INC. Income Taxes Disclosure

10-KFiled Mar 14, 20252 min read
6.
 
INCOME TAXES
The Company’s provision
 
for income taxes is
 
presented in the following
 
table for the years
 
ended December 31, 2024
and 2023 (in thousands):
The actual income
 
tax expense for the
 
years ended December 31, 2024
 
and 2023 differs from
 
the statutory tax expense
for the year (computed by applying the U.S. federal
 
corporate tax rate of
21
% for 2024 and
21
% for 2023 to income before
provision for income taxes) as follows (in thousands):
The following table presents
 
the deferred tax assets
 
and deferred tax liabilities
 
as of December 31, 2024
 
and 2023 (in
thousands):
At December
 
31, 2024,
 
the Company
 
had approximately $
32.7
 
million of
 
Federal and
 
$
55.5
 
million of
 
State net
 
operating
loss carryforwards expiring
 
in various amounts
 
from 2032 to
 
2036. If unused
 
after 2036, their
 
utilization is limited
 
to future
taxable earnings of the Company.
In assessing the
 
realizability of deferred
 
tax assets, management considered
 
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 U.S.
 
Federal jurisdiction
 
and Florida
 
are the
 
major tax
 
jurisdictions where
 
the Company
 
files income
 
tax returns.
The Company is generally no longer subject to U.S. Federal or
 
State examinations by tax authorities for years before 2021.
For
 
the
 
years
 
ended
 
December 31,
 
2024 and
 
2023,
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
2023
Deferred tax assets:
Net operating loss
$
9,276
$
16,430
Allowance for credit losses
6,100
5,410
Lease liability
2,142
2,895
Unrealized loss on available for sale securities
15,200
15,114
Depreciable property
38
203
Equity compensation
686
630
Accruals
520
382
Other, net
65
10
Deferred tax asset
$
34,027
$
41,074
Deferred tax liability:
Deferred loan cost
(1,934)
(553)
Lease right of use asset
(2,142)
(2,895)
Deferred expenses
(224)
(180)
Cash flow hedge
(81)
(85)
Other, net
-
(79)
Deferred tax liability
$
(4,381)
$
(3,792)
Net deferred tax asset
$
29,646
$
37,282
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
2023
Federal taxes at statutory rate
$
6,820
$
4,577
State income taxes, net of federal tax benefit
1,411
 
947
Bank owned life insurance
(428)
 
(273)
Other, net
-
 
-
Total
 
tax expense
$
7,803
$
5,251
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
2023
Current:
Federal
$
-
$
-
State
-
 
-
Total
 
current
-
 
-
Deferred:
Federal
6,122
 
4,121
State
1,681
 
1,130
Total
 
deferred
7,803
 
5,251
Total
 
tax expense
$
7,803
$
5,251

Historical Timeline

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

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

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