Will Jones's questions to USCB FINANCIAL HOLDINGS (USCB) leadership • Q2 2025
Question
Will Jones of Keefe, Bruyette & Woods inquired about USCB's strategy for international deposit gathering following its new investment-grade rating, the potential scale of this opportunity, and the cost differential compared to domestic deposits. He also asked about the net interest margin (NIM) outlook, particularly the potential impact of future interest rate cuts.
Answer
President, CEO & Chairman Luis de la Aguilera explained the relationship-driven strategy to grow deposits from their portfolio of 30+ correspondent banks in the Caribbean Basin and Central America, noting the new rating removes deposit limits for some of these clients. CFO Rob Anderson specified that the $268 million in global banking deposits have a low cost of 1.74%. He also confirmed that due to the bank's liability-sensitive balance sheet and large money market book, they expect the NIM to improve in a rate-cut environment.