Company: USCB
Filing Date: 2025-11-07
Form Type: S-4
Source: 0001193125-25-272361
Chunk: 21

Company: USCB FINANCIAL HOLDINGS, INC.
Filing Date: 2025-11-07
Form: S-4
Chunk 21
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 by holders of the notes in the event of our insolvency, bankruptcy, liquidation, dissolution, winding up or similar proceeding, and may limit our ability to meet our obligations under the notes.

Payments on the notes will depend on receipt of dividends and distributions from our subsidiaries

We are a bank holding company and we conduct substantially all of our operations through subsidiaries, including the Bank. We depend on
dividends, distributions and other payments from our subsidiaries to meet our obligations, including to fund payments on the notes.

11

We may generally declare a dividend from retained net profits which accrued prior to the
preceding two years, but we must, before the declaration of a dividend on our common stock, under applicable Florida law, carry 20% of our net profits for such preceding period as is covered by the dividend to our surplus fund, until the same shall
at least equal the amount of our common stock and preferred stock, if any, then issued and outstanding. Under Florida law, we are prohibited from declaring a dividend at any time at which our net income from the current year combined with the
retained net income from the preceding two years is a loss or which would cause our capital accounts to fall below the minimum amount required by law, regulation, order, or any written agreement with a state or federal regulatory agency.
Furthermore, under applicable FDIC regulations and policy, the Bank must obtain the prior approval of the FDIC before effecting a cash dividend or other capital distribution. Similarly, we have agreed to notify the Federal Reserve before declaring
and paying any dividends on our Class A common stock. As of September 30, 2025, the Bank would need prior regulatory approval to pay a dividend to the Company. Also, the Company’s right to participate in a distribution of assets upon
a subsidiary’s liquidation or reorganization is subject to the prior claims of the subsidiary’s creditors. In the event the Bank is unable to pay dividends to us, we may not be able to service any debt we may incur, which could have a
material adverse effect on our business, financial condition, results of operations and growth prospects.

The Bank also may not pay
dividends if payment would cause it to become undercapitalized or if it is already undercapitalized and must maintain a common equity Tier 1 capital conservation buffer of greater than 2.5% to avoid becoming subject to restrictions on capital
distributions, including dividends. Further, contractual or other restrictions may also limit our subsidiaries’ abilities to pay dividends or