EX-99.1 2 fusb-ex99_1.htm EX-99.1 EX-99.1

 

 

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Exhibit 99.1

First US Bancshares, Inc. Reports Second Quarter 2025 Results

 

BIRMINGHAM, AL (July 30, 2025) – Second Quarter Highlights:

 

First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”), today reported net income of $0.2 million, or $0.03 per diluted share, for the quarter ended June 30, 2025 (“2Q2025”), compared to $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 (“1Q2025”) and $2.1 million, or $0.34 per diluted share, for the quarter ended June 30, 2024 (“2Q2024”). For the six months ended June 30, 2025, net income totaled $1.9 million, or $0.32 per diluted share, compared to $4.2 million, or $0.68 per diluted share, for the six months ended June 30, 2024. The decrease in net income in both 2Q2025 and the six months ended June 30, 2025, compared to the previous periods, resulted primarily from an increase in the Company’s provision for credit losses on loans and leases.

 

The table below summarizes selected financial data for each of the periods presented.

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

June
30,

 

 

March
31,

 

 

December
31,

 

 

September
30,

 

 

June
30,

 

 

June
30,

 

 

June
30,

 

Results of Operations:

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Interest income

 

$

14,854

 

 

$

14,018

 

 

$

14,420

 

 

$

15,017

 

 

$

14,546

 

 

$

28,872

 

 

$

28,823

 

Interest expense

 

 

5,378

 

 

 

5,121

 

 

 

5,672

 

 

 

5,832

 

 

 

5,370

 

 

 

10,499

 

 

 

10,607

 

Net interest income

 

 

9,476

 

 

 

8,897

 

 

 

8,748

 

 

 

9,185

 

 

 

9,176

 

 

 

18,373

 

 

 

18,216

 

Provision for credit losses

 

 

2,717

 

 

 

528

 

 

470

 

 

152

 

 

 

-

 

 

 

3,245

 

 

 

—

 

Net interest income after provision for credit losses

 

 

6,759

 

 

 

8,369

 

 

 

8,278

 

 

 

9,033

 

 

 

9,176

 

 

 

15,128

 

 

 

18,216

 

Non-interest income

 

 

849

 

 

 

875

 

 

 

982

 

 

 

901

 

 

 

835

 

 

 

1,724

 

 

 

1,700

 

Non-interest expense

 

 

7,444

 

 

 

6,918

 

 

 

6,947

 

 

 

6,990

 

 

 

7,272

 

 

 

14,362

 

 

 

14,419

 

Income before income taxes

 

 

164

 

 

 

2,326

 

 

 

2,313

 

 

 

2,944

 

 

 

2,739

 

 

 

2,490

 

 

 

5,497

 

Provision for income taxes

 

 

9

 

 

 

554

 

 

 

599

 

 

 

722

 

 

 

612

 

 

 

563

 

 

 

1,263

 

Net income

 

$

155

 

 

$

1,772

 

 

$

1,714

 

 

$

2,222

 

 

$

2,127

 

 

$

1,927

 

 

$

4,234

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.03

 

 

$

0.30

 

 

$

0.30

 

 

$

0.38

 

 

$

0.36

 

 

$

0.33

 

 

$

0.72

 

Diluted net income per share

 

$

0.03

 

 

$

0.29

 

 

$

0.29

 

 

$

0.36

 

 

$

0.34

 

 

$

0.32

 

 

$

0.68

 

Dividends declared

 

$

0.07

 

 

$

0.07

 

 

$

0.07

 

 

$

0.05

 

 

$

0.05

 

 

$

0.14

 

 

$

0.10

 

Key Measures (Period End):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,143,379

 

 

$

1,126,967

 

 

$

1,101,086

 

 

$

1,100,235

 

 

$

1,083,313

 

 

 

 

 

 

 

Tangible assets (1)

 

 

1,135,932

 

 

 

1,119,502

 

 

 

1,093,602

 

 

 

1,092,733

 

 

 

1,075,781

 

 

 

 

 

 

 

Total loans

 

 

871,431

 

 

 

848,335

 

 

 

823,039

 

 

 

803,308

 

 

 

819,126

 

 

 

 

 

 

 

Allowance for credit losses ("ACL") on loans and leases

 

 

11,388

 

 

 

10,405

 

 

 

10,184

 

 

 

10,116

 

 

 

10,227

 

 

 

 

 

 

 

Investment securities, net

 

 

157,137

 

 

 

161,946

 

 

 

168,570

 

 

 

145,044

 

 

 

144,876

 

 

 

 

 

 

 

Total deposits

 

 

986,846

 

 

 

961,952

 

 

 

972,557

 

 

 

981,149

 

 

 

954,455

 

 

 

 

 

 

 

Short-term borrowings

 

 

35,000

 

 

 

45,000

 

 

 

10,000

 

 

 

-

 

 

 

15,000

 

 

 

 

 

 

 

Long-term borrowings

 

 

10,909

 

 

 

10,890

 

 

 

10,872

 

 

 

10,854

 

 

 

10,836

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

101,892

 

 

 

101,231

 

 

 

98,624

 

 

 

98,491

 

 

 

93,836

 

 

 

 

 

 

 

Tangible common equity (1)

 

 

94,445

 

 

 

93,766

 

 

 

91,140

 

 

 

90,989

 

 

 

86,304

 

 

 

 

 

 

 

Book value per common share

 

 

17.70

 

 

 

17.64

 

 

 

17.31

 

 

 

17.23

 

 

 

16.34

 

 

 

 

 

 

 

Tangible book value per common share (1)

 

 

16.41

 

 

 

16.34

 

 

 

16.00

 

 

 

15.92

 

 

 

15.03

 

 

 

 

 

 

 

Key Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.06

%

 

 

0.66

%

 

 

0.63

%

 

 

0.82

%

 

 

0.80

%

 

 

0.35

%

 

 

0.80

%

Return on average common equity (annualized)

 

 

0.61

%

 

 

7.21

%

 

 

6.92

%

 

 

9.21

%

 

 

9.23

%

 

 

3.86

%

 

 

9.24

%

Return on average tangible common equity (annualized) (1)

 

 

0.66

%

 

 

7.79

%

 

 

7.49

%

 

 

9.99

%

 

 

10.05

%

 

 

4.17

%

 

 

10.06

%

Pre-tax pre-provision net revenue to average assets (annualized) (1)

 

 

1.03

%

 

 

1.06

%

 

 

1.02

%

 

 

1.14

%

 

 

1.03

%

 

 

1.05

%

 

 

1.04

%

Net interest margin

 

 

3.59

%

 

 

3.53

%

 

 

3.41

%

 

 

3.60

%

 

 

3.69

%

 

 

3.56

%

 

 

3.67

%

Efficiency ratio (2)

 

 

72.1

%

 

 

70.8

%

 

 

71.4

%

 

 

69.3

%

 

 

72.6

%

 

 

71.5

%

 

 

72.4

%

Total loans to deposits

 

 

88.3

%

 

 

88.2

%

 

 

84.6

%

 

 

81.9

%

 

 

85.8

%

 

 

 

 

 

 

Total loans to assets

 

 

76.2

%

 

 

75.3

%

 

 

74.7

%

 

 

73.0

%

 

 

75.6

%

 

 

 

 

 

 

Common equity to total assets

 

 

8.91

%

 

 

8.98

%

 

 

8.96

%

 

 

8.95

%

 

 

8.66

%

 

 

 

 

 

 

Tangible common equity to tangible assets (1)

 

 

8.31

%

 

 

8.38

%

 

 

8.33

%

 

 

8.33

%

 

 

8.02

%

 

 

 

 

 

 

Tier 1 leverage ratio (3)

 

 

9.23

%

 

 

9.55

%

 

 

9.50

%

 

 

9.49

%

 

 

9.46

%

 

 

 

 

 

 

ACL on loans and leases as % of total loans

 

 

1.31

%

 

 

1.23

%

 

 

1.24

%

 

 

1.26

%

 

 

1.25

%

 

 

 

 

 

 

Nonperforming assets as % of total assets

 

 

0.33

%

 

 

0.44

%

 

 

0.50

%

 

 

0.60

%

 

 

0.27

%

 

 

 

 

 

 

Net charge-offs as a percentage of average loans

 

 

0.79

%

 

 

0.13

%

 

 

0.24

%

 

 

0.12

%

 

 

0.10

%

 

 

0.47

%

 

 

0.10

%

 

(1) Refer to the non-GAAP reconciliations beginning on page 10.

(2) Efficiency ratio = non-interest expense / (net interest income + non-interest income)

(3)  First US Bank Tier 1 leverage ratio

 

 

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

CEO Commentary

 

“During the second quarter, we recorded a significant provision for credit losses associated with growth in indirect consumer lending, combined with an uptick in net charge-offs in the category, as well as the application of additional reserves on two individually evaluated commercial loans,” stated James F. House, President and CEO of the Company. “While the additional provisioning had a pronounced impact on earnings for both the quarter and year-to-date period, we are encouraged by increases in both net interest margin and total loans during the quarter. Net interest margin expanded by six basis points compared to the previous quarter, and total loans grew by 2.7% during the quarter, bringing year-to-date loan growth to 5.9%. Our pre-tax pre-provision net revenue also increased by 0.9% compared to 1Q2025 and by 5.2% compared to 2Q2024,” continued Mr. House. “All of these measures help build a solid base for the future.”

Financial Results

 

Loans and Leases – The table below summarizes loan balances by portfolio category as of the end of each of the most recent five quarters.

 

 

Quarter Ended

 

 

2025

 

2024

 

 

June
30,

 

March
31,

 

December
31,

 

September
30,

 

June
30,

 

 

(Dollars in Thousands)

 

 

(Unaudited)

 

(Unaudited)

 

 

 

(Unaudited)

 

(Unaudited)

Real estate loans:

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$48,101

 

$58,572

 

$65,537

 

$53,098

 

$72,183

Secured by 1-4 family residential properties

 

67,587

 

68,523

 

69,999

 

70,067

 

70,272

Secured by multi-family residential properties

 

118,807

 

106,374

 

101,057

 

100,627

 

97,527

Secured by non-residential commercial real estate

 

215,035

 

214,065

 

227,751

 

224,611

 

218,386

Commercial and industrial loans ("C&I")

 

40,986

 

45,166

 

44,238

 

44,872

 

46,249

Consumer loans:

 

 

 

 

 

 

 

 

 

 

Direct

 

4,836

 

4,610

 

4,774

 

5,018

 

5,272

Indirect

 

376,079

 

351,025

 

309,683

 

305,015

 

309,237

Total loans and leases held for investment

 

$871,431

 

$848,335

 

$823,039

 

$803,308

 

$819,126

Allowance for credit losses on loans and leases

 

11,388

 

10,405

 

10,184

 

10,116

 

10,227

Net loans and leases held for investment

 

$860,043

 

$837,930

 

$812,855

 

$793,192

 

$808,899

 

Total loans increased by $23.1 million in 2Q2025, driven primarily by growth of $25.1 million in consumer indirect loans during the quarter. The indirect lending platform focuses on recreational and equipment consumer lending on the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the six months ended June 30, 2025 was 798, while the weighted average credit score for the entire portfolio was 781. In addition to the indirect portfolio, the Company also grew its multi-family residential real estate loan category by $12.4 million in 2Q2025. Loan growth during 2Q2025 was partially offset by reductions primarily in the construction and C&I categories. Total loan volume averaged $857.7 million during 2Q2025 compared to $824.5 million during 1Q2025 and $819.6 million during 2Q2024. For the six months ended June 30, 2025, average loan balances increased by $20.4 million, or 2.5%, compared to the six months ended June 30, 2024.

 

Net Interest Income and Margin – Net interest income in 2Q2025 increased by $0.6 million, or 6.5%, compared to 1Q2025 and increased by $0.3 million, or 3.3%, compared to 2Q2024. Net interest margin was 3.59% for 2Q2025 compared to 3.53% for 1Q2025 and 3.69% for 2Q2024. The increase in net interest margin compared to the prior quarter resulted from increased average loan volume, as well as increases in yields on loans and investments. The decrease in net interest margin compared to 2Q2024 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2024. For the six months ended June 30, 2025, net interest margin was 3.56% compared to 3.67% for the six months ended June 30, 2024.

 

Provision for Credit Losses – During 2Q2025, the Company recorded a provision for credit losses of $2.7 million, bringing the total provision for credit losses to $3.2 million for the six months ended June 30, 2025. No provision for credit losses was recorded in 2Q2024 or for the six months ended June 30, 2024. In both 2Q2025 and the six months ended June 30, 2025, the provision for credit losses resulted primarily from significant growth in the consumer indirect category, combined with an increase in net charge-offs in the category, as well as from additional reserves on two individually evaluated commercial loans. For 2Q2025, $1.4 million of the provision was associated with the indirect consumer portfolio, while $0.9 million was associated with specific reserves added for the two individually evaluated loans, with the remaining $0.4 million

2

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

associated with various factors, including changes in economic forecasting data and increases in the allowance for unfunded commitments. For the six months ended June 30, 2025, $2.3 million of the provision was associated with the indirect consumer portfolio, while $0.9 million was associated with specific reserves added for the two individually evaluated loans. As of June 30, 2025, the Company’s allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.31%, compared to 1.24% as of December 31, 2024.

 

Pre-tax Pre-provision Net Revenue (“PPNR”) – PPNR totaled $2.9 million in both 2Q2025 and 1Q2025, compared to $2.7 million in 2Q2024. For the six months ended June 30, 2025, PPNR totaled $5.7 million compared to $5.5 million for the six months ended June 30, 2024. As a percentage of average assets, PPNR totaled 1.03% in 2Q2025 compared to 1.06% in 1Q2025 and 1.03% in 2Q2024. For the six months ended June 30, 2025, PPNR as a percentage of average assets was 1.05% compared to 1.04% for the six months ended June 30, 2024. Refer to the non-GAAP reconciliation of PPNR beginning on page 11.

Deposits –Total deposits increased by $24.9 million, or 2.6%, during 2Q2025, due primarily to increases in interest-bearing demand deposit accounts, as well as the addition of brokered certificates of deposit obtained to assist in the management of deposit costs. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $816.1 million, or 82.7% of total deposits, as of June 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024.

 

Short-term Borrowings – As of June 30, 2025, the Company had $35.0 million in short-term borrowings outstanding compared to $10.0 million outstanding as of December 31, 2024. The short-term borrowings were held as part of the Company’s efforts to maintain on-balance sheet liquidity levels while repricing deposits at lower rates. As of both June 30, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of June 30, 2025 included $20.0 million borrowed from the Federal Home Loan Bank of Atlanta (“FHLB”) and $15.0 million borrowed from the Federal Reserve Bank’s (“FRB”) discount window. As of December 31, 2024, all short-term borrowings outstanding were borrowed exclusively from the FHLB.

Deployment of Funds – As of June 30, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $58.8 million, or 5.1% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $157.1 million as of June 30, 2025 compared to $168.6 million as of December 31, 2024. As of June 30, 2025, the expected average life of securities in the investment portfolio was 3.7 years compared to 3.6 years as of December 31, 2024.

Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $3.7 million as of June 30, 2025 compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets totaled 0.33% as of June 30, 2025 compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.79% during 2Q2025 compared to 0.13% during 1Q2025 and 0.10% during 2Q2024. For the six months ended June 30, 2025, net charge-offs as a percentage of average loans totaled 0.47% compared to 0.10% for the six months ended June 30, 2024. The increase in net charge-offs in both 2Q2025 and the six months ended June 30, 2025 was due to a partial charge-off of one individually evaluated commercial loan of $1.2 million during 2Q2025, as well as an increase in charge-offs associated with the indirect portfolio. During 2Q2025, net charge-offs associated with the indirect portfolio totaled $0.6 million compared to $0.3 million in both 1Q2025 and 2Q2024. For the six months ended June 30, 2025, net charge-offs associated with the indirect portfolio totaled $0.9 million, compared to $0.5 million for the six months ended June 30, 2024.

Non-interest Income – Non-interest income remained relatively consistent, totaling $0.8 million in 2Q2025 compared to $0.9 million in 1Q2025 and $0.8 million in 2Q2024. For both six-month periods ended June 30, 2025 and 2024, non-interest income totaled $1.7 million.

Non-interest Expense – Non-interest expense totaled $7.4 million in 2Q2025, compared to $6.9 million in 1Q2025 and $7.3 million in 2Q2024. The expense increase comparing 2Q2025 to 1Q2025 resulted primarily from increases in salaries and benefits and fees for professional services. For both six-month periods ended June 30, 2025 and 2024, non-interest expense totaled $14.4 million.

 

Shareholders’ Equity – As of June 30, 2025, shareholders’ equity totaled $101.9 million, or 8.91% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders’ equity during the six months ended June 30, 2025 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during the period by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, as well as the maturity of lower yielding investment securities. The Company’s ratio of tangible common equity to tangible assets was 8.31% as of June 30, 2025 compared to 8.33% as of December 31, 2024.

Cash Dividend – In 2Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 1Q2025. The Company’s cash dividend was increased in 4Q2024 compared to a dividend declared of $0.05 per share in each of the first three quarters of 2024.

3

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

Share Repurchases – The Company did not repurchase shares of its common stock during 2Q2025. During 1Q2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company’s previously announced share repurchase program. As of June 30, 2025, 872,813 shares remained available for repurchase under the program.

 

Regulatory Capital – During 2Q2025, the Bank continued to maintain capital ratios at higher levels than required to be considered a “well-capitalized” institution under applicable banking regulations. As of June 30, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.70%, its total capital ratio was 11.93%, and its Tier 1 leverage ratio was 9.23%.

Liquidity – As of June 30, 2025, the Company continued to maintain funding capacity sufficient to provide adequate liquidity for loan growth, capital expenditures and ongoing operations. The Company benefits from a strong core deposit base, a liquid investment securities portfolio and access to funding from a variety of sources, including federal funds lines with other banking institutions, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company’s liquidity.

Banking Center Growth – During 2Q2025, the Company continued its renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location is expected to serve as the Bank’s initial deposit gathering facility in the Daphne/Mobile area. It is currently anticipated that the location will open to the public during the first half of 2026. In addition, at the end of 2Q2025, the Company purchased land in Mobile, Alabama. It is intended that the land will be developed into an office complex that will house the Company’s indirect lending operation, as well as provide an additional banking center in the area.

 

About First US Bancshares, Inc.

First US Bancshares, Inc. (the “Company”) is a bank holding company that operates banking offices in Alabama, Tennessee, and Virginia through First US Bank (the “Bank”). The Company files periodic reports with the U.S. Securities and Exchange Commission (the “SEC”). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.firstusbank.com. More information about the Company and the Bank may be obtained at www.firstusbank.com. The Company’s stock is traded on the Nasdaq Capital Market under the symbol “FUSB.”

 

Forward-Looking Statements

 

This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. The Company undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, the Company, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of the Company’s senior management based upon current information and involve a number of risks and uncertainties.

Certain factors that could affect the accuracy of such forward-looking statements and cause actual results to differ materially from those projected in such forward-looking statements are identified in the public filings made by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be considered in light of those factors. Such factors may include risk related to the Company's credit, including that if loan losses are greater than anticipated; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; liquidity risks; the impact of national and local market conditions on the Company's business and operations; the rate of growth (or lack thereof) in the economy generally and in the Company’s service areas; the effects of significant changes to the structure and operations of the federal government; strong competition in the banking industry; the impact of changes in interest rates and monetary policy on the Company’s performance and financial condition; the effects of fiscal challenges facing the U.S. government or any potential government shutdown; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence (“AI”); the costs of complying with extensive governmental regulation; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; and other risk factors described from time to time in the Company’s public filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. Relative to the Company’s dividend policy, the payment of cash dividends is subject to the discretion of the Board of Directors and will be determined in light of then-current conditions, including the Company’s earnings, leverage, operations, financial conditions, capital requirements and other factors

4

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

deemed relevant by the Board of Directors. In the future, the Board of Directors may change the Company’s dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.

5

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY

NET INTEREST MARGIN

THREE MONTHS ENDED June 30, 2025 AND 2024

(Dollars in Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

 

Average
Balance

 

 

Interest

 

 

Annualized
Yield/
Rate %

 

 

Average
Balance

 

 

Interest

 

 

Annualized
Yield/
Rate %

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

857,707

 

 

$

12,989

 

 

 

6.07

%

 

$

819,590

 

 

$

12,930

 

 

 

6.35

%

Investment securities

 

 

154,576

 

 

 

1,335

 

 

 

3.46

%

 

 

143,112

 

 

 

1,108

 

 

 

3.11

%

Federal Home Loan Bank stock

 

 

1,320

 

 

 

26

 

 

 

7.90

%

 

 

969

 

 

 

19

 

 

 

7.89

%

Federal funds sold and securities purchased under reverse repurchase agreements

 

 

4,850

 

 

 

53

 

 

 

4.38

%

 

 

4,850

 

 

 

66

 

 

 

5.47

%

Interest-bearing deposits in banks

 

 

40,710

 

 

 

451

 

 

 

4.44

%

 

 

30,965

 

 

 

423

 

 

 

5.49

%

Total interest-earning assets

 

 

1,059,163

 

 

 

14,854

 

 

 

5.63

%

 

 

999,486

 

 

 

14,546

 

 

 

5.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

63,179

 

 

 

 

 

 

 

 

 

65,794

 

 

 

 

 

 

 

Total assets

 

$

1,122,342

 

 

 

 

 

 

 

 

$

1,065,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

203,734

 

 

 

438

 

 

 

0.86

%

 

$

203,784

 

 

 

424

 

 

 

0.84

%

Money market/savings deposits

 

 

273,185

 

 

 

1,743

 

 

 

2.56

%

 

 

247,211

 

 

 

1,627

 

 

 

2.65

%

Time deposits

 

 

356,602

 

 

 

2,944

 

 

 

3.31

%

 

 

347,010

 

 

 

3,159

 

 

 

3.66

%

Total interest-bearing deposits

 

 

833,521

 

 

 

5,125

 

 

 

2.47

%

 

 

798,005

 

 

 

5,210

 

 

 

2.63

%

Noninterest-bearing demand deposits

 

 

155,432

 

 

 

—

 

 

 

—

 

 

 

151,117

 

 

 

—

 

 

 

—

 

Total deposits

 

 

988,953

 

 

 

5,125

 

 

 

2.08

%

 

 

949,122

 

 

 

5,210

 

 

 

2.21

%

Borrowings

 

 

22,966

 

 

 

253

 

 

 

4.42

%

 

 

14,838

 

 

 

160

 

 

 

4.34

%

Total funding liabilities

 

 

1,011,919

 

 

 

5,378

 

 

 

2.13

%

 

 

963,960

 

 

 

5,370

 

 

 

2.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

9,100

 

 

 

 

 

 

 

 

 

8,638

 

 

 

 

 

 

 

Shareholders’ equity

 

 

101,323

 

 

 

 

 

 

 

 

 

92,682

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

1,122,342

 

 

 

 

 

 

 

 

$

1,065,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

9,476

 

 

 

 

 

 

 

 

$

9,176

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

3.59

%

 

 

 

 

 

 

 

 

3.69

%

 

 

 

 

6

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY

NET INTEREST MARGIN

SIX MONTHS ENDED June 30, 2025 AND 2024

(Dollars in Thousands)

(Unaudited)

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

 

Average
Balance

 

 

Interest

 

 

Annualized Yield/
Rate %

 

 

Average
Balance

 

 

Interest

 

 

Annualized Yield/
Rate %

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

841,210

 

 

$

25,230

 

 

 

6.05

%

 

$

820,787

 

 

$

25,783

 

 

 

6.32

%

Investment securities

 

 

160,377

 

 

 

2,747

 

 

 

3.45

%

 

 

138,915

 

 

 

1,973

 

 

 

2.86

%

Federal Home Loan Bank stock

 

 

1,331

 

 

 

50

 

 

 

7.58

%

 

 

941

 

 

 

37

 

 

 

7.91

%

Federal funds sold and securities purchased under reverse repurchase agreements

 

 

4,850

 

 

 

106

 

 

 

4.41

%

 

 

5,729

 

 

 

155

 

 

 

5.44

%

Interest-bearing deposits in banks

 

 

33,505

 

 

 

739

 

 

 

4.45

%

 

 

31,985

 

 

 

875

 

 

 

5.50

%

Total interest-earning assets

 

 

1,041,273

 

 

 

28,872

 

 

 

5.59

%

 

 

998,357

 

 

 

28,823

 

 

 

5.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

63,664

 

 

 

 

 

 

 

 

 

66,808

 

 

 

 

 

 

 

Total assets

 

$

1,104,937

 

 

 

 

 

 

 

 

$

1,065,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

207,909

 

 

 

930

 

 

 

0.90

%

 

$

202,522

 

 

 

676

 

 

 

0.67

%

Money market/savings deposits

 

 

265,160

 

 

 

3,287

 

 

 

2.50

%

 

 

253,816

 

 

 

3,511

 

 

 

2.78

%

Time deposits

 

 

343,494

 

 

 

5,777

 

 

 

3.39

%

 

 

341,916

 

 

 

6,122

 

 

 

3.60

%

Total interest-bearing deposits

 

 

816,563

 

 

 

9,994

 

 

 

2.47

%

 

 

798,254

 

 

 

10,309

 

 

 

2.60

%

Noninterest-bearing demand deposits

 

 

155,363

 

 

 

—

 

 

 

—

 

 

 

150,380

 

 

 

—

 

 

 

—

 

Total deposits

 

 

971,926

 

 

 

9,994

 

 

 

2.07

%

 

 

948,634

 

 

 

10,309

 

 

 

2.19

%

Borrowings

 

 

23,184

 

 

 

505

 

 

 

4.39

%

 

 

14,692

 

 

 

298

 

 

 

4.08

%

Total funding liabilities

 

 

995,110

 

 

 

10,499

 

 

 

2.13

%

 

 

963,326

 

 

 

10,607

 

 

 

2.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

9,294

 

 

 

 

 

 

 

 

 

9,675

 

 

 

 

 

 

 

Shareholders’ equity

 

 

100,533

 

 

 

 

 

 

 

 

 

92,164

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

1,104,937

 

 

 

 

 

 

 

 

$

1,065,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

18,373

 

 

 

 

 

 

 

 

$

18,216

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

3.56

%

 

 

 

 

 

 

 

 

3.67

%

 

 

 

7

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands, Except Share and Per Share Data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

Cash and due from banks

 

$

9,380

 

 

$

10,633

 

Interest-bearing deposits in banks

 

 

44,575

 

 

 

36,583

 

Total cash and cash equivalents

 

 

53,955

 

 

 

47,216

 

Federal funds sold and securities purchased under reverse repurchase agreements

 

 

4,850

 

 

 

5,727

 

Investment securities available-for-sale, at fair value (amortized cost $159,563 and
    $174,597; net of allowance for credit losses of $- and $-)

 

 

156,576

 

 

 

167,888

 

Investment securities held-to-maturity, at amortized cost, net of allowance for credit
    losses of $- and $-, (fair value 2025 - $535, 2024 - $642)

 

 

561

 

 

 

682

 

Federal Home Loan Bank stock, at cost

 

 

1,741

 

 

 

1,256

 

Loans and leases held for investment

 

 

871,431

 

 

 

823,039

 

Less allowance for credit losses on loans and leases

 

 

11,388

 

 

 

10,184

 

Net loans and leases held for investment

 

 

860,043

 

 

 

812,855

 

Premises and equipment, net of accumulated depreciation

 

 

26,479

 

 

 

24,803

 

Cash surrender value of bank-owned life insurance

 

 

17,198

 

 

 

17,056

 

Accrued interest receivable

 

 

3,867

 

 

 

3,588

 

Goodwill and core deposit intangible, net

 

 

7,447

 

 

 

7,484

 

Other real estate owned

 

 

1,298

 

 

 

1,509

 

Other assets

 

 

9,364

 

 

 

11,022

 

Total assets

 

$

1,143,379

 

 

$

1,101,086

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Deposits:

 

 

 

 

 

 

Non-interest-bearing

 

$

150,894

 

 

$

155,945

 

Interest-bearing

 

 

835,952

 

 

 

816,612

 

Total deposits

 

 

986,846

 

 

 

972,557

 

Accrued interest expense

 

 

1,981

 

 

 

1,751

 

Other liabilities

 

 

6,751

 

 

 

7,282

 

Short-term borrowings

 

 

35,000

 

 

 

10,000

 

Long-term borrowings

 

 

10,909

 

 

 

10,872

 

Total liabilities

 

 

1,041,487

 

 

 

1,002,462

 

Shareholders’ equity:

 

 

 

 

 

 

Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,920,149 and
    7,840,348 shares issued, respectively; 5,755,064 and 5,696,171 shares outstanding,
   respectively

 

 

79

 

 

 

78

 

Additional paid-in capital

 

 

15,619

 

 

 

15,540

 

Accumulated other comprehensive loss, net of tax

 

 

(2,065

)

 

 

(4,344

)

Retained earnings

 

 

117,988

 

 

 

116,865

 

Less treasury stock: 2,165,085 and 2,144,177 shares at cost, respectively

 

 

(29,729

)

 

 

(29,515

)

Total shareholders’ equity

 

 

101,892

 

 

 

98,624

 

Total liabilities and shareholders’ equity

 

$

1,143,379

 

 

$

1,101,086

 

 

8

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

12,989

 

 

$

12,930

 

 

$

25,230

 

 

$

25,783

 

Interest on investment securities

 

 

1,335

 

 

 

1,108

 

 

 

2,747

 

 

 

1,973

 

Interest on deposits in banks

 

 

451

 

 

 

423

 

 

 

739

 

 

 

875

 

Other

 

 

79

 

 

 

85

 

 

 

156

 

 

 

192

 

Total interest income

 

 

14,854

 

 

 

14,546

 

 

 

28,872

 

 

 

28,823

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

5,125

 

 

 

5,210

 

 

 

9,994

 

 

 

10,309

 

Interest on borrowings

 

 

253

 

 

 

160

 

 

 

505

 

 

 

298

 

Total interest expense

 

 

5,378

 

 

 

5,370

 

 

 

10,499

 

 

 

10,607

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

9,476

 

 

 

9,176

 

 

 

18,373

 

 

 

18,216

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

2,717

 

 

 

—

 

 

 

3,245

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

 

6,759

 

 

 

9,176

 

 

 

15,128

 

 

 

18,216

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service and other charges on deposit accounts

 

 

278

 

 

 

298

 

 

 

566

 

 

 

597

 

Lease income

 

 

269

 

 

 

253

 

 

 

553

 

 

 

510

 

Other income, net

 

 

302

 

 

 

284

 

 

 

605

 

 

 

593

 

Total non-interest income

 

 

849

 

 

 

835

 

 

 

1,724

 

 

 

1,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

3,945

 

 

 

3,890

 

 

 

7,681

 

 

 

7,978

 

Net occupancy and equipment

 

 

937

 

 

 

954

 

 

 

1,812

 

 

 

1,848

 

Computer services

 

 

421

 

 

 

444

 

 

 

833

 

 

 

887

 

Insurance expense and assessments

 

 

366

 

 

 

414

 

 

 

750

 

 

 

805

 

Fees for professional services

 

 

470

 

 

 

364

 

 

 

685

 

 

 

705

 

Other expense

 

 

1,305

 

 

 

1,206

 

 

 

2,601

 

 

 

2,196

 

Total non-interest expense

 

 

7,444

 

 

 

7,272

 

 

 

14,362

 

 

 

14,419

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

164

 

 

 

2,739

 

 

 

2,490

 

 

 

5,497

 

Provision for income taxes

 

 

9

 

 

 

612

 

 

 

563

 

 

 

1,263

 

Net income

 

$

155

 

 

$

2,127

 

 

$

1,927

 

 

$

4,234

 

Basic net income per share

 

$

0.03

 

 

$

0.36

 

 

$

0.33

 

 

$

0.72

 

Diluted net income per share

 

$

0.03

 

 

$

0.34

 

 

$

0.32

 

 

$

0.68

 

Dividends per share

 

$

0.07

 

 

$

0.05

 

 

$

0.14

 

 

$

0.10

 

 

9

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

Non-GAAP Financial Measures

In addition to the financial results presented in this press release that have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company’s management believes that certain non-GAAP financial measures and ratios are beneficial to the reader. These non-GAAP measures have been provided to enhance overall understanding of the Company’s current financial performance and position. Management believes that these presentations provide meaningful comparisons of financial performance and position in various periods and can be used as a supplement to the GAAP-based measures presented in this press release. The non-GAAP financial results presented should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Management believes that both GAAP measures of the Company’s financial performance and the respective non-GAAP measures should be considered together.

The non-GAAP measures and ratios that have been provided in this press release include measures of liquidity, pre-tax pre-provision net revenue, tangible assets and equity. Discussion of these measures and ratios is included below, along with reconciliations of such non-GAAP measures to GAAP amounts included in the consolidated financial statements previously presented in this press release.

 

Liquidity Measures

The table below provides information combining the Company’s on-balance sheet liquidity with readily available off-balance sheet sources of liquidity as of both June 30, 2025 and December 31, 2024.

 

 

June 30,
 2025

 

 

December 31,
 2024

 

 

(Dollars in Thousands)

 

 

(Unaudited)

 

 

(Unaudited)

 

Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements:

 

 

 

 

 

Cash and cash equivalents

$

53,955

 

 

$

47,216

 

Federal funds sold and securities purchased under reverse repurchase agreements

 

4,850

 

 

 

5,727

 

Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements

 

58,805

 

 

 

52,943

 

Liquidity from pledgable investment securities:

 

 

 

 

 

Investment securities available-for sale, at fair value

 

156,576

 

 

 

167,888

 

Investment securities held-to-maturity, at amortized cost

 

561

 

 

 

682

 

Less: securities pledged

 

(62,626

)

 

 

(72,110

)

Less: estimated collateral value discounts

 

(10,311

)

 

 

(10,164

)

Total liquidity from pledgable investment securities

 

84,200

 

 

 

86,296

 

Liquidity from unused lendable collateral (loans) at FHLB

 

11,175

 

 

 

45,388

 

Liquidity from unused lendable collateral (loans and securities) at FRB

 

181,861

 

 

 

165,061

 

Unsecured lines of credit with banks

 

48,000

 

 

 

48,000

 

Total readily available liquidity

$

384,041

 

 

$

397,688

 

 

The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company’s consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the FHLB and FRB, as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are non-GAAP measures used by management and regulators to analyze a portion of the Company's liquidity. Management uses these measures to evaluate the Company's liquidity position.

Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-to-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheet, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value.

The unused lendable collateral value at the FHLB presented in the table represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of June 30, 2025 and December

10

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

31, 2024, the Company's total remaining credit availability with the FHLB was $298.0 million and $319.9 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company’s on-balance sheet and other readily available liquidity provide strong indicators of the Company’s ability to fund obligations in a stressed liquidity environment.

 

Excluding wholesale brokered deposits, as of June 30, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $31.1 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $202.5 million, or 20.5% of total deposits, as of June 30, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits.

 

Pre-tax Pre-provision Net Revenue

 

The Company utilizes pre-tax pre-provision net revenue (“PPNR”) as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company’s profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company’s core operating profitability on a trended basis. In management’s experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company’s calculation of PPNR to amounts recorded in accordance with GAAP.

 

 

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

June
30,

 

 

March
31,

 

 

December
31,

 

 

September
30,

 

 

June
30,

 

 

June
30,

 

 

June
30,

 

 

 

 

 

(Dollars in Thousands)

 

 

 

 

 

(Unaudited Reconciliation)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

$

155

 

 

$

1,772

 

 

$

1,714

 

 

$

2,222

 

 

$

2,127

 

 

$

1,927

 

 

$

4,234

 

Add: Provision for income taxes

 

 

 

 

9

 

 

 

554

 

 

 

599

 

 

 

722

 

 

 

612

 

 

 

563

 

 

 

1,263

 

Add: Provision for credit losses

 

 

 

 

2,717

 

 

 

528

 

 

 

470

 

 

 

152

 

 

 

—

 

 

 

3,245

 

 

 

—

 

Pre-tax pre-provision net revenue

 

 

 

$

2,881

 

 

$

2,854

 

 

$

2,783

 

 

$

3,096

 

 

$

2,739

 

 

$

5,735

 

 

$

5,497

 

Average assets

 

 

 

$

1,122,342

 

 

$

1,087,338

 

 

$

1,086,071

 

 

$

1,080,198

 

 

$

1,065,280

 

 

$

1,104,937

 

 

$

1,065,165

 

PPNR as a percentage of average assets (annualized)

 

 

 

 

1.03

%

 

 

1.06

%

 

 

1.02

%

 

 

1.14

%

 

 

1.03

%

 

 

1.05

%

 

 

1.04

%

 

Tangible Balances and Measures

In addition to capital ratios defined by GAAP and banking regulators, the Company utilizes various tangible common equity measures when evaluating capital utilization and adequacy. These measures, which are presented in the financial tables in this press release, may also include calculations of tangible assets. As defined by the Company, tangible common equity represents shareholders’ equity less goodwill and identifiable intangible assets, while tangible assets represent total assets less goodwill and identifiable intangible assets.

Management believes that the measures of tangible equity are important because they reflect the level of capital available to withstand unexpected market conditions. In addition, presentation of these measures allows readers to compare certain aspects of the Company’s capitalization to other organizations. In management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets that typically result from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these measures, management believes that there are no comparable GAAP financial measures to the tangible common equity ratios that the Company utilizes. Despite the importance of these measures to the Company, there are no standardized definitions for the measures, and,

11

 

 

First US Bancshares, Inc. Reports Second Quarter 2025 Results

July 30, 2025

 

therefore, the Company’s calculations may not be comparable with those of other organizations. In addition, there may be limits to the usefulness of these measures to investors. Accordingly, management encourages readers to consider the Company’s consolidated financial statements in their entirety and not to rely on any single financial measure. The table below reconciles the Company’s calculations of these measures to amounts reported in accordance with GAAP.

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

 

 

2025

 

2024

 

2025

 

2024

 

 

 

 

June
30,

 

March
31,

 

December
31,

 

September
30,

 

June
30,

 

June
30,

 

June
30,

 

 

 

 

(Dollars in Thousands, Except Per Share Data)

 

 

 

 

(Unaudited Reconciliation)

TANGIBLE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

$1,143,379

 

$1,126,967

 

$1,101,086

 

$1,100,235

 

$1,083,313

 

 

 

 

Less: Goodwill

 

 

 

7,435

 

7,435

 

7,435

 

7,435

 

7,435

 

 

 

 

Less: Core deposit intangible

 

 

 

12

 

30

 

49

 

67

 

97

 

 

 

 

Tangible assets

 

(a)

 

$1,135,932

 

$1,119,502

 

$1,093,602

 

$1,092,733

 

$1,075,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

 

$101,892

 

$101,231

 

$98,624

 

$98,491

 

$93,836

 

 

 

 

Less: Goodwill

 

 

 

7,435

 

7,435

 

7,435

 

7,435

 

7,435

 

 

 

 

Less: Core deposit intangible

 

 

 

12

 

30

 

49

 

67

 

97

 

 

 

 

Tangible common equity

 

(b)

 

$94,445

 

$93,766

 

$91,140

 

$90,989

 

$86,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

 

 

 

$101,323

 

$99,734

 

$98,618

 

$96,000

 

$92,682

 

$100,533

 

$92,164

Less: Average goodwill

 

 

 

7,435

 

7,435

 

7,435

 

7,435

 

7,435

 

7,435

 

7,435

Less: Average core deposit intangible

 

 

 

21

 

39

 

58

 

80

 

115

 

30

 

133

Average tangible shareholders’ equity

 

(c)

 

$93,867

 

$92,260

 

$91,125

 

$88,485

 

$85,132

 

$93,068

 

$84,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

(d)

 

$155

 

$1,772

 

$1,714

 

$2,222

 

$2,127

 

$1,927

 

$4,234

Common shares outstanding (in thousands)

 

(e)

 

5,755

 

5,739

 

5,696

 

5,715

 

5,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE MEASURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

 

(b)/(e)

 

$16.41

 

$16.34

 

$16.00

 

$15.92

 

$15.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

(b)/(a)

 

8.31%

 

8.38%

 

8.33%

 

8.33%

 

8.02%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (annualized)

 

(1)

 

0.66%

 

7.79%

 

7.49%

 

9.99%

 

10.05%

 

4.17%

 

10.06%

 

(1)
Calculation of Return on average tangible common equity (annualized) = ((net income (d) / number of days in period) * number of days in year) / average tangible shareholders’ equity (c)

 

Contact:

Thomas S. Elley

205-582-1200

 

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