First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the
parent company of First US Bank (the “Bank”), today reported net
income of $1.4 million, or $0.20 per diluted share, for the quarter
ended March 31, 2022 (“1Q2022”), compared to $1.0 million, or $0.14
per diluted share, for the quarter ended March 31, 2021 (“1Q2021”)
and $1.7 million, or $0.25 per diluted share, for the quarter ended
December 31, 2021 (“4Q2021”).
Growth in the Company’s earnings, comparing
1Q2022 to 1Q2021, resulted from reductions in both non-interest
expense and, to a lesser extent, interest expense. Non-interest
expense reductions were driven by strategic initiatives launched in
September 2021 that were previously announced by the Company. The
initiatives, which are aimed at improving operating efficiency,
focusing the Company’s loan growth activities, and fortifying asset
quality, included the cessation of new business development at the
Bank’s wholly owned subsidiary, Acceptance Loan Company, Inc.
(“ALC”). Non-interest expense was reduced by $1.3 million in
1Q2022, compared to 1Q2021, and included substantial decreases in
salaries and benefits, occupancy and equipment and other costs.
Interest expense was reduced by $0.1 million as the Company’s total
average funding costs decreased to 0.32% in 1Q2022, compared to
0.39% in 1Q2021. The favorable earnings impact of expense
reductions was partially offset by reductions in interest and fees
on loans, and non-interest income and an increase in the provision
for loan and lease losses.
Comparing 1Q2022 to 4Q2021, the reduction in net
income resulted primarily from decreased interest and fees on loans
and increased provisioning for loan and lease losses, partially
offset by reductions in both interest and non-interest expense. The
increased loan loss provisioning in 1Q2022 was associated with the
remaining ALC loan portfolio and reflected both an increase in
charge-offs associated with the portfolio, as well as qualitative
adjustments implemented by management in response to heightened
inflationary trends and other economic uncertainties that emerged
during 1Q2022. The ALC strategy and other efficiency initiatives
adopted by the Company in 2021 contributed to significant
reductions in non-interest expense in both 1Q2022 and 4Q2021. These
reductions are expected to contribute favorably to the Company’s
earnings in future periods; however, revenues associated with loans
at ALC will also decrease as the portfolio continues to pay down.
ALC’s remaining loan portfolio totaled $35.8 million as of March
31, 2022, compared to $43.7 million as of December 31, 2021, a
reduction of 18.1%. Consistent with the reduction in loans,
interest and fees on ALC’s loan portfolio were reduced to $1.6
million in 1Q2022, compared to $2.0 million, in 4Q2021, a decrease
of 19.5%. Management continues to expect that the majority of ALC’s
loans will be paid off by the end of 2023. Accordingly, the
Company’s focus remains on growth in the Bank’s other earning asset
categories, as well as efforts to continue to reduce operating
expenses and improve the Company’s efficiency over time.
“We are pleased to begin 2022 with significantly
improved earnings compared to the same quarter in 2021,” stated
James F. House, the Company’s President and CEO. “We continue to
reap the cost-saving benefits of the strategic initiatives that we
implemented in 2021. Given the inflationary environment and trends
in geopolitical events that have developed during the first
quarter, economic uncertainty has increased. However, we believe
that the initiatives we implemented in 2021 to reduce expense and
simplify our business model will serve us well during these
uncertain times,” continued Mr. House.
Other First Quarter Financial
Highlights
Loan Growth – The table below summarizes loan
balances by portfolio category at the end of each of the most
recent five quarters as of March 31, 2022.
|
Quarter Ended |
|
|
2022 |
|
|
2021 |
|
|
March31, |
|
|
December31, |
|
|
September30, |
|
|
June30, |
|
|
March31, |
|
|
(Dollars in Thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land development and other land loans |
$ |
52,817 |
|
|
$ |
67,048 |
|
|
$ |
58,175 |
|
|
$ |
53,425 |
|
|
$ |
48,491 |
|
Secured by 1-4 family residential properties |
|
69,760 |
|
|
|
72,727 |
|
|
|
73,112 |
|
|
|
78,815 |
|
|
|
82,349 |
|
Secured by multi-family residential properties |
|
50,796 |
|
|
|
46,000 |
|
|
|
51,420 |
|
|
|
53,811 |
|
|
|
54,180 |
|
Secured by non-farm, non-residential properties |
|
177,752 |
|
|
|
197,901 |
|
|
|
198,745 |
|
|
|
191,398 |
|
|
|
193,626 |
|
Commercial and industrial
loans |
|
67,455 |
|
|
|
72,286 |
|
|
|
73,777 |
|
|
|
65,772 |
|
|
|
65,043 |
|
Paycheck Protection Program
("PPP") loans |
|
643 |
|
|
|
1,661 |
|
|
|
3,902 |
|
|
|
11,587 |
|
|
|
14,795 |
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct consumer |
|
18,023 |
|
|
|
21,689 |
|
|
|
25,845 |
|
|
|
26,937 |
|
|
|
26,998 |
|
Branch retail |
|
21,891 |
|
|
|
25,692 |
|
|
|
29,764 |
|
|
|
31,688 |
|
|
|
31,075 |
|
Indirect sales |
|
220,931 |
|
|
|
205,940 |
|
|
|
194,154 |
|
|
|
176,116 |
|
|
|
153,940 |
|
Total loans |
$ |
680,068 |
|
|
$ |
710,944 |
|
|
$ |
708,894 |
|
|
$ |
689,549 |
|
|
$ |
670,497 |
|
Less unearned interest, fees and deferred costs |
|
1,738 |
|
|
|
2,594 |
|
|
|
3,729 |
|
|
|
4,067 |
|
|
|
3,792 |
|
Allowance for loan and lease losses |
|
8,484 |
|
|
|
8,320 |
|
|
|
8,193 |
|
|
|
7,726 |
|
|
|
7,475 |
|
Net loans |
$ |
669,846 |
|
|
$ |
700,030 |
|
|
$ |
696,972 |
|
|
$ |
677,756 |
|
|
$ |
659,230 |
|
The Company’s total loan portfolio decreased by
$30.9 million, or 4.3%, as of March 31, 2022, compared to December
31, 2021. Loan volume decreases were most pronounced in the Bank’s
commercial real estate (secured by non-farm, non-residential
properties) and construction categories. The decreases in these
loan categories was generally consistent with historic first
quarter seasonality, and a portion of the reduction was
attributable to the payoff of loans in accordance with contractual
terms as financed construction projects were completed. In
addition, the ALC business cessation strategy resulted in decreases
primarily in the direct consumer and branch retail loan categories.
Loan volume reductions were partially offset by growth in the
Bank’s indirect and multi-family portfolios. The indirect portfolio
has experienced significant growth in recent quarters and is
focused on consumer lending secured by collateral that includes
recreational vehicles, campers, boats, horse trailers and cargo
trailers. The Bank now operates indirect lending in a 12-state
footprint primarily in the southeastern United States.
Net Interest Income and Margin – Net interest
income totaled $8.7 million in 1Q2022, compared to $9.3 million in
4Q2021 and $9.1 million in 1Q2021. Compared to both prior periods,
the most significant driver of the decrease in net interest income
was the reduction of interest and fees on ALC loans in connection
with the ALC business cessation strategy. Interest and fees on ALC
loans decreased in 1Q2022 by $0.4 million compared to 4Q2021 and by
$0.8 million compared to 1Q2021. The reduction compared to 1Q2021
was partially offset by increased interest income in the Bank’s
other loan portfolios, as well as increases in investment security
interest income and reductions in interest expense on deposits. As
ALC’s loan portfolio continues to pay down, there will be continued
reduction in interest and fees attributable to ALC’s loans. These
reductions are expected to continue to put downward pressure on
total loan yield and net interest margin. As a result of the
changing mix of loans, the Company’s net interest margin was
reduced to 3.97% in 1Q2022, compared to 4.10% in 4Q2021 and 4.40%
in 1Q2021. Historically, ALC’s loan portfolio has represented both
the Company’s highest yielding loans, as well as the portfolio with
highest level of credit losses. Accordingly, while interest earned
on these loans is expected to decrease over time, loan loss
provision expense is also expected to decrease as the portfolio
pays down.
Deposit Growth and Deployment of Funds –
Deposits totaled $853.1 million as of March 31, 2022, compared to
$838.1 million as of December 31, 2021, an increase of $15.0
million, or 1.8%. In the current environment, management has
continued to focus on minimizing deposit expense and deploying
excess cash balances into earning assets that meet the Company’s
established credit standards, while maintaining appropriate levels
of liquidity in accordance with projected funding needs. Total
average funding costs, including both interest- and
noninterest-bearing liabilities and borrowings, was reduced to
0.32% in 1Q2022, compared to 0.33% in 4Q2021 and 0.39% in 1Q2021.
Given the increasing interest rate environment in 1Q2022,
management continued to deploy a portion of excess funds into the
investment securities portfolio. Investment securities, including
both the available-for-sale and held-to-maturity portfolios totaled
$137.7 million as of March 31, 2022, compared to $134.3 million as
of December 31, 2021, and $75.8 million as of March 31, 2021. The
expected average life of securities in the investment portfolio as
of March 31, 2022 was 3.52 years. Management maintains the
portfolio with average durations that are expected to provide
monthly cash flows that can be utilized to reinvest in earning
assets at current market rates.
Loan Loss Provision – Loan loss provisions
totaled $0.7 million in 1Q2022, compared to $0.5 million in 4Q2021,
and $0.4 million in 1Q2021. The increase in provision expense in
1Q2022 compared to the prior quarters reflected both an increase in
charge-offs associated with ALC’s loan portfolio, as well as
qualitative adjustments applied to ALC’s portfolio in response to
heightened inflationary trends and other economic uncertainties
that emerged during the quarter. In management’s view, the
combination of the business cessation strategy, coupled with
deteriorating economic conditions, including elevated inflation
levels, increased overall credit risk in ALC’s loan portfolio as of
March 31, 2022, compared to December 31, 2021. Loan loss provisions
recorded by the Company during 1Q2022 included expense of $0.8
million associated with ALC’s loans, partially offset by a $0.1
million net reduction in provision expense in other loan categories
due to reduction in loan volume. Management will continue to
closely monitor the impact of changing economic circumstances on
the Company’s loan portfolio and will adjust the allowance
accordingly. Due to its classification as a smaller reporting
company by the Securities and Exchange Commission, the Company is
not required to adopt the Current Expected Credit Loss (CECL) model
to account for credit losses until January 1, 2023. Management
continues to evaluate the impact that the adoption of CECL will
have on the Company’s financial statements.
Non-interest Income – Non-interest income
totaled $0.8 million in 1Q2022, compared to $0.9 million in 4Q2021,
and $1.0 million in 1Q2021. The reduction compared to both periods
in 2021 resulted primarily from decreases in miscellaneous revenue
sources, including credit insurance income associated with ALC
loans that have been reduced.
Non-interest Expense – Non-interest expense
totaled $7.1 million in 1Q2022, compared to $7.4 million in 4Q2021
and $8.4 million in 1Q2021. The decrease in 1Q2022 resulted
primarily from implementation of the ALC strategy, as well as other
efficiency efforts conducted at the Bank. As a result of these
efforts, significant expense reductions were realized associated
with salaries and employee benefits, occupancy and equipment, as
well as other expenses associated with technology and professional
services. As of March 31, 2022, the Company had 161 full-time
equivalent employees, compared to 175 as of December 31, 2021, and
265 as of March 31, 2021. Non-interest expense in 1Q2022 was
reduced by $0.2 million in nonrecurring net gains on the sale of
other real estate owned (OREO).
Balance Sheet Growth – As of March 31, 2022, the
Company’s assets totaled $968.6 million, compared to $958.3 million
as of December 31, 2021, an increase of 1.1%.
Asset Quality – The Company’s nonperforming
assets, including loans in non-accrual status and OREO, totaled
$3.1 million as of March 31, 2022, compared to $4.2 million as of
December 31, 2021. The reduction in nonperforming assets during
1Q2022 resulted from the sale of OREO properties during the
quarter. Reductions in OREO totaled $1.3 million and included the
sale of banking centers that were closed in 2021. As a percentage
of total assets, non-performing assets totaled 0.32% as of March
31, 2022, compared to 0.43% as of December 31, 2021.
Shareholders’ Equity – As of March 31, 2022,
shareholders’ equity totaled $87.8 million, compared to $90.1
million as of December 31, 2021. The decrease in shareholders’
equity resulted primarily from reductions in accumulated other
comprehensive income due to declines in the market value of the
Company’s available-for-sale investment portfolio. The market value
declines were the direct result of the increasing interest rate
environment in 1Q2022. No other-than-temporary impairment was
recognized in the portfolio, and the Company has both the intent
and ability to retain the investments for a period of time
sufficient to allow for the full recovery of all market value
decreases. The market value decrease in available-for-sale
securities was partially offset by an increase in the market value
of cash flow derivative instruments that hedge certain deposits and
borrowings on the Company’s balance sheet.
Cash Dividend – The Company declared a cash
dividend of $0.03 per share on its common stock in 1Q2022. The
dividend was consistent with dividends paid during all four
quarters of 2021.
Share Repurchases - During 1Q2022, the Company
completed share repurchases totaling 87,600 shares of its common
stock at a weighted average price of $10.94 per share. The
repurchases were completed under the Company’s existing share
repurchase program, which was amended in April 2021 to allow for
the repurchase of additional shares through December 31, 2022. As
of March 31, 2022, a total of 921,613 shares remained available for
repurchase under the program.
Regulatory Capital – During 1Q2022, 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 March 31, 2022, the Bank’s common equity
Tier 1 capital and Tier 1 risk-based capital ratios were each
11.82%. Its total capital ratio was 12.95%, and its Tier 1 leverage
ratio was 9.38%.
Liquidity – As of March 31, 2022, the Company
continued to maintain excess 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,
Federal Home Loan Bank advances and brokered deposits.
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”). In
addition, the Company’s operations include Acceptance Loan Company,
Inc. (“ALC”), a consumer loan company, and FUSB Reinsurance, Inc.,
an underwriter of credit life and credit accident and health
insurance policies sold to the Bank’s and ALC’s consumer loan
customers. 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 the rate of growth (or lack thereof) in
the economy generally and in the Company’s service areas; the
impact of the current COVID-19 pandemic on the Company’s business,
the Company’s customers, the communities that the Company serves
and the United States economy, including the impact of actions
taken by governmental authorities to try to contain the virus and
protect against it, through vaccinations and otherwise, or address
the impact of the virus on the United States economy (including,
without limitation, the Coronavirus Aid, Relief and Economic
Security (CARES) Act and subsequent federal legislation) and the
resulting effect on the Company’s operations, liquidity and capital
position and on the financial condition of the Company’s borrowers
and other customers; the impact of changing accounting standards
and tax laws on the Company’s allowance for loan losses and
financial results; the impact of national and local market
conditions on the Company’s business and operations; 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 pending discontinuation of LIBOR as an
interest rate benchmark; the impact of technological changes in the
banking and financial service industries and potential information
system failures; cybersecurity and data privacy threats; the costs
of complying with extensive governmental regulation; 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 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.
FIRST US BANCSHARES, INC. AND
SUBSIDIARIESSELECTED FINANCIAL DATA
– LINKED QUARTERS(Dollars in Thousands,
Except Per Share Data)(Unaudited)
|
Quarter Ended |
|
|
2022 |
|
|
2021 |
|
|
March31, |
|
|
December31, |
|
|
September30, |
|
|
June30, |
|
|
March31, |
|
Results of
Operations: |
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Interest income |
$ |
9,381 |
|
|
$ |
9,987 |
|
|
$ |
10,030 |
|
|
$ |
10,059 |
|
|
$ |
9,845 |
|
Interest expense |
|
672 |
|
|
|
727 |
|
|
|
695 |
|
|
|
747 |
|
|
|
781 |
|
Net interest income |
|
8,709 |
|
|
|
9,260 |
|
|
|
9,335 |
|
|
|
9,312 |
|
|
|
9,064 |
|
Provision for loan and lease
losses |
|
721 |
|
|
|
493 |
|
|
|
618 |
|
|
|
498 |
|
|
|
401 |
|
Net interest income after
provision for loanand lease losses |
|
7,988 |
|
|
|
8,767 |
|
|
|
8,717 |
|
|
|
8,814 |
|
|
|
8,663 |
|
Non-interest income |
|
829 |
|
|
|
865 |
|
|
|
896 |
|
|
|
809 |
|
|
|
951 |
|
Non-interest expense |
|
7,056 |
|
|
|
7,414 |
|
|
|
8,547 |
|
|
|
8,399 |
|
|
|
8,396 |
|
Income before income taxes |
|
1,761 |
|
|
|
2,218 |
|
|
|
1,066 |
|
|
|
1,224 |
|
|
|
1,218 |
|
Provision for income taxes |
|
400 |
|
|
|
507 |
|
|
|
229 |
|
|
|
271 |
|
|
|
268 |
|
Net income |
$ |
1,361 |
|
|
$ |
1,711 |
|
|
$ |
837 |
|
|
$ |
953 |
|
|
$ |
950 |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
$ |
0.22 |
|
|
$ |
0.27 |
|
|
$ |
0.13 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
Diluted net income per share |
$ |
0.20 |
|
|
$ |
0.25 |
|
|
$ |
0.13 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
Dividends declared |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.03 |
|
Key Measures (Period
End): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
968,646 |
|
|
$ |
958,302 |
|
|
$ |
956,734 |
|
|
$ |
946,946 |
|
|
$ |
926,535 |
|
Tangible assets(1) |
|
960,650 |
|
|
|
950,233 |
|
|
|
948,592 |
|
|
|
938,719 |
|
|
|
918,216 |
|
Loans, net of allowance for loan
losses |
|
669,846 |
|
|
|
700,030 |
|
|
|
696,972 |
|
|
|
677,756 |
|
|
|
659,230 |
|
Allowance for loan and lease
losses |
|
8,484 |
|
|
|
8,320 |
|
|
|
8,193 |
|
|
|
7,726 |
|
|
|
7,475 |
|
Investment securities, net |
|
137,736 |
|
|
|
134,319 |
|
|
|
121,467 |
|
|
|
123,583 |
|
|
|
75,783 |
|
Total deposits |
|
853,117 |
|
|
|
838,126 |
|
|
|
846,842 |
|
|
|
837,885 |
|
|
|
818,043 |
|
Short-term borrowings |
|
10,062 |
|
|
|
10,046 |
|
|
|
10,037 |
|
|
|
10,017 |
|
|
|
10,017 |
|
Long-term borrowings |
|
10,671 |
|
|
|
10,653 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total shareholders’ equity |
|
87,807 |
|
|
|
90,064 |
|
|
|
89,597 |
|
|
|
88,778 |
|
|
|
87,917 |
|
Tangible common equity(1) |
|
79,811 |
|
|
|
81,995 |
|
|
|
81,455 |
|
|
|
80,551 |
|
|
|
79,598 |
|
Book value per common share |
|
14.33 |
|
|
|
14.59 |
|
|
|
14.41 |
|
|
|
14.28 |
|
|
|
14.15 |
|
Tangible book value per common
share(1) |
|
13.02 |
|
|
|
13.28 |
|
|
|
13.10 |
|
|
|
12.96 |
|
|
|
12.81 |
|
Key Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
|
0.58 |
% |
|
|
0.71 |
% |
|
|
0.35 |
% |
|
|
0.41 |
% |
|
|
0.43 |
% |
Return on average common
equity(annualized) |
|
6.17 |
% |
|
|
7.54 |
% |
|
|
3.71 |
% |
|
|
4.32 |
% |
|
|
4.41 |
% |
Return on average tangible common
equity(annualized)(1) |
|
6.77 |
% |
|
|
8.29 |
% |
|
|
4.08 |
% |
|
|
4.76 |
% |
|
|
4.87 |
% |
Net interest margin |
|
3.97 |
% |
|
|
4.10 |
% |
|
|
4.17 |
% |
|
|
4.31 |
% |
|
|
4.40 |
% |
Efficiency ratio(2) |
|
74.0 |
% |
|
|
73.2 |
% |
|
|
83.5 |
% |
|
|
83.0 |
% |
|
|
83.8 |
% |
Net loans to deposits |
|
78.5 |
% |
|
|
83.5 |
% |
|
|
82.3 |
% |
|
|
80.9 |
% |
|
|
80.6 |
% |
Net loans to assets |
|
69.2 |
% |
|
|
73.0 |
% |
|
|
72.8 |
% |
|
|
71.6 |
% |
|
|
71.2 |
% |
Tangible common equity to
tangibleassets(1) |
|
8.31 |
% |
|
|
8.63 |
% |
|
|
8.59 |
% |
|
|
8.58 |
% |
|
|
8.67 |
% |
Tier 1 leverage ratio(3) |
|
9.38 |
% |
|
|
9.17 |
% |
|
|
8.51 |
% |
|
|
8.60 |
% |
|
|
8.73 |
% |
Allowance for loan losses as % of
loans |
|
1.25 |
% |
|
|
1.17 |
% |
|
|
1.16 |
% |
|
|
1.13 |
% |
|
|
1.12 |
% |
Nonperforming assets as % of
total assets |
|
0.32 |
% |
|
|
0.43 |
% |
|
|
0.35 |
% |
|
|
0.22 |
% |
|
|
0.37 |
% |
Net charge-offs as a percentage
of average loans |
|
0.32 |
% |
|
|
0.18 |
% |
|
|
0.09 |
% |
|
|
0.15 |
% |
|
|
0.25 |
% |
(1) Refer to Non-GAAP
reconciliation of tangible balances and measures 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. AND
SUBSIDIARIESNET INTEREST
MARGINTHREE MONTHS ENDED MARCH 31, 2022 AND
2021(Dollars in
Thousands)(Unaudited)
|
Three Months Ended |
|
|
Three Months Ended |
|
|
March 31, 2022 |
|
|
March 31, 2021 |
|
|
AverageBalance |
|
|
Interest |
|
|
AnnualizedYield/Rate
% |
|
|
AverageBalance |
|
|
Interest |
|
|
AnnualizedYield/Rate
% |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
$ |
696,695 |
|
|
$ |
8,847 |
|
|
|
5.15 |
% |
|
$ |
652,886 |
|
|
$ |
9,490 |
|
|
|
5.89 |
% |
Taxable investment securities |
|
130,306 |
|
|
|
485 |
|
|
|
1.51 |
% |
|
|
83,151 |
|
|
|
306 |
|
|
|
1.49 |
% |
Tax-exempt investment securities |
|
2,771 |
|
|
|
12 |
|
|
|
1.76 |
% |
|
|
3,522 |
|
|
|
16 |
|
|
|
1.84 |
% |
Federal Home Loan Bank stock |
|
879 |
|
|
|
8 |
|
|
|
3.69 |
% |
|
|
1,106 |
|
|
|
9 |
|
|
|
3.30 |
% |
Federal funds sold |
|
81 |
|
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
|
— |
|
|
|
— |
|
Interest-bearing deposits in banks |
|
57,859 |
|
|
|
29 |
|
|
|
0.20 |
% |
|
|
95,303 |
|
|
|
24 |
|
|
|
0.10 |
% |
Total interest-earning assets |
|
888,591 |
|
|
|
9,381 |
|
|
|
4.28 |
% |
|
|
836,052 |
|
|
|
9,845 |
|
|
|
4.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
64,958 |
|
|
|
|
|
|
|
|
|
|
|
68,838 |
|
|
|
|
|
|
|
|
|
Total |
$ |
953,549 |
|
|
|
|
|
|
|
|
|
|
$ |
904,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
250,612 |
|
|
$ |
126 |
|
|
|
0.20 |
% |
|
$ |
225,152 |
|
|
$ |
139 |
|
|
|
0.25 |
% |
Savings deposits |
|
197,016 |
|
|
|
140 |
|
|
|
0.29 |
% |
|
|
174,678 |
|
|
|
145 |
|
|
|
0.34 |
% |
Time deposits |
|
210,727 |
|
|
|
249 |
|
|
|
0.48 |
% |
|
|
238,659 |
|
|
|
459 |
|
|
|
0.78 |
% |
Total interest-bearing deposits |
|
658,355 |
|
|
|
515 |
|
|
|
0.32 |
% |
|
|
638,489 |
|
|
|
743 |
|
|
|
0.47 |
% |
Noninterest-bearing demand
deposits |
|
175,285 |
|
|
|
— |
|
|
|
— |
|
|
|
159,208 |
|
|
|
— |
|
|
|
— |
|
Total deposits |
|
833,640 |
|
|
|
515 |
|
|
|
0.25 |
% |
|
|
797,697 |
|
|
|
743 |
|
|
|
0.38 |
% |
Borrowings |
|
20,715 |
|
|
|
157 |
|
|
|
3.07 |
% |
|
|
10,016 |
|
|
|
38 |
|
|
|
1.54 |
% |
Total funding costs |
|
854,355 |
|
|
|
672 |
|
|
|
0.32 |
% |
|
|
807,713 |
|
|
|
781 |
|
|
|
0.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
9,692 |
|
|
|
|
|
|
|
|
|
|
|
9,720 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
89,502 |
|
|
|
|
|
|
|
|
|
|
|
87,457 |
|
|
|
|
|
|
|
|
|
Total |
$ |
953,549 |
|
|
|
|
|
|
|
|
|
|
$ |
904,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
8,709 |
|
|
|
|
|
|
|
|
|
|
$ |
9,064 |
|
|
|
|
|
Net interest margin |
|
|
|
|
|
|
|
|
|
3.97 |
% |
|
|
|
|
|
|
|
|
|
|
4.40 |
% |
FIRST US BANCSHARES, INC. AND
SUBSIDIARIESINTERIM CONDENSED CONSOLIDATED BALANCE
SHEETS(Dollars in Thousands, Except Per Share
Data)
|
March 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
$ |
12,537 |
|
|
$ |
10,843 |
|
Interest-bearing deposits in
banks |
|
85,302 |
|
|
|
50,401 |
|
Total cash and cash equivalents |
|
97,839 |
|
|
|
61,244 |
|
Federal funds sold |
|
81 |
|
|
|
82 |
|
Investment securities
available-for-sale, at fair value |
|
135,018 |
|
|
|
130,883 |
|
Investment securities
held-to-maturity, at amortized cost |
|
2,718 |
|
|
|
3,436 |
|
Federal Home Loan Bank stock, at
cost |
|
934 |
|
|
|
870 |
|
Loans and leases, net of
allowance for loan and lease losses of $8,484 and$8,320,
respectively |
|
669,846 |
|
|
|
700,030 |
|
Premises and equipment, net of
accumulated depreciation of $22,204and $21,916, respectively |
|
24,881 |
|
|
|
25,123 |
|
Cash surrender value of
bank-owned life insurance |
|
16,213 |
|
|
|
16,141 |
|
Accrued interest receivable |
|
2,450 |
|
|
|
2,556 |
|
Goodwill and core deposit
intangible, net |
|
7,996 |
|
|
|
8,069 |
|
Other real estate owned |
|
874 |
|
|
|
2,149 |
|
Other assets |
|
9,796 |
|
|
|
7,719 |
|
Total assets |
$ |
968,646 |
|
|
$ |
958,302 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
183,536 |
|
|
$ |
174,501 |
|
Interest-bearing |
|
669,581 |
|
|
|
663,625 |
|
Total deposits |
|
853,117 |
|
|
|
838,126 |
|
Accrued interest expense |
|
305 |
|
|
|
224 |
|
Other liabilities |
|
6,684 |
|
|
|
9,189 |
|
Short-term borrowings |
|
10,062 |
|
|
|
10,046 |
|
Long-term borrowings |
|
10,671 |
|
|
|
10,653 |
|
Total liabilities |
|
880,839 |
|
|
|
868,238 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
Common stock, par value $0.01 per
share, 10,000,000 shares authorized;7,679,659 and 7,634,918 shares
issued, respectively; 6,129,519 and 6,172,378shares outstanding,
respectively |
|
75 |
|
|
|
75 |
|
Additional paid-in capital |
|
14,278 |
|
|
|
14,163 |
|
Accumulated other comprehensive
loss, net of tax |
|
(2,866 |
) |
|
|
(276 |
) |
Retained earnings |
|
99,604 |
|
|
|
98,428 |
|
Less treasury stock: 1,550,140
and 1,462,540 shares at cost, respectively |
|
(23,284 |
) |
|
|
(22,326 |
) |
Total shareholders’ equity |
|
87,807 |
|
|
|
90,064 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
968,646 |
|
|
$ |
958,302 |
|
FIRST US BANCSHARES, INC. AND
SUBSIDIARIESINTERIM CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Dollars in Thousands,
Except Per Share Data)
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
|
2021 |
|
|
(Unaudited) |
|
Interest income: |
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
8,847 |
|
|
$ |
9,490 |
|
Interest on investment securities: |
|
|
|
|
|
|
|
Taxable |
|
485 |
|
|
|
306 |
|
Tax-exempt |
|
12 |
|
|
|
16 |
|
Other interest and dividends |
|
37 |
|
|
|
33 |
|
Total interest income |
|
9,381 |
|
|
|
9,845 |
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
Interest on deposits |
|
516 |
|
|
|
743 |
|
Interest on short-term borrowings |
|
35 |
|
|
|
38 |
|
Interest on long-term borrowings |
|
121 |
|
|
|
— |
|
Total interest expense |
|
672 |
|
|
|
781 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
8,709 |
|
|
|
9,064 |
|
|
|
|
|
|
|
|
|
Provision for loan and lease
losses |
|
721 |
|
|
|
401 |
|
|
|
|
|
|
|
|
|
Net interest income after
provision for loan and lease losses |
|
7,988 |
|
|
|
8,663 |
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
Service and other charges on deposit accounts |
|
299 |
|
|
|
266 |
|
Lease income |
|
214 |
|
|
|
209 |
|
Other income, net |
|
316 |
|
|
|
476 |
|
Total non-interest income |
|
829 |
|
|
|
951 |
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
4,330 |
|
|
|
4,914 |
|
Net occupancy and equipment |
|
766 |
|
|
|
1,039 |
|
Computer services |
|
377 |
|
|
|
465 |
|
Fees for professional services |
|
268 |
|
|
|
357 |
|
Other expense |
|
1,315 |
|
|
|
1,621 |
|
Total non-interest expense |
|
7,056 |
|
|
|
8,396 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
1,761 |
|
|
|
1,218 |
|
Provision for income taxes |
|
400 |
|
|
|
268 |
|
Net income |
$ |
1,361 |
|
|
$ |
950 |
|
Basic net income per share |
$ |
0.22 |
|
|
$ |
0.15 |
|
Diluted net income per share |
$ |
0.20 |
|
|
$ |
0.14 |
|
Dividends per share |
$ |
0.03 |
|
|
$ |
0.03 |
|
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 a substitute for the GAAP-based results. 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 tangible assets
and equity and certain ratios that include 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 financial statements previously presented
in this press release.
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, 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 |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
March31, |
|
|
December31, |
|
|
September30, |
|
|
June30, |
|
|
March31, |
|
|
|
|
(Dollars in Thousands, Except Per Share Data) |
|
|
|
|
(Unaudited Reconciliation) |
|
TANGIBLE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
968,646 |
|
|
$ |
958,302 |
|
|
$ |
956,734 |
|
|
$ |
946,946 |
|
|
$ |
926,535 |
|
Less: Goodwill |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
Less: Core deposit
intangible |
|
|
|
561 |
|
|
|
634 |
|
|
|
707 |
|
|
|
792 |
|
|
|
884 |
|
Tangible assets |
(a) |
|
$ |
960,650 |
|
|
$ |
950,233 |
|
|
$ |
948,592 |
|
|
$ |
938,719 |
|
|
$ |
918,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
|
|
$ |
87,807 |
|
|
$ |
90,064 |
|
|
$ |
89,597 |
|
|
$ |
88,778 |
|
|
$ |
87,917 |
|
Less: Goodwill |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
Less: Core deposit
intangible |
|
|
|
561 |
|
|
|
634 |
|
|
|
707 |
|
|
|
792 |
|
|
|
884 |
|
Tangible common equity |
(b) |
|
$ |
79,811 |
|
|
$ |
81,995 |
|
|
$ |
81,455 |
|
|
$ |
80,551 |
|
|
$ |
79,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders’
equity |
|
|
$ |
89,502 |
|
|
$ |
90,010 |
|
|
$ |
89,603 |
|
|
$ |
88,477 |
|
|
$ |
87,456 |
|
Less: Average goodwill |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
|
|
7,435 |
|
Less: Average core deposit
intangible |
|
|
|
596 |
|
|
|
669 |
|
|
|
746 |
|
|
|
836 |
|
|
|
927 |
|
Average tangible shareholders’ equity |
(c) |
|
$ |
81,471 |
|
|
$ |
81,906 |
|
|
$ |
81,422 |
|
|
$ |
80,206 |
|
|
$ |
79,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
(d) |
|
$ |
1,361 |
|
|
$ |
1,711 |
|
|
$ |
837 |
|
|
$ |
953 |
|
|
$ |
950 |
|
Common shares outstanding (in
thousands) |
(e) |
|
|
6,130 |
|
|
|
6,172 |
|
|
|
6,218 |
|
|
|
6,215 |
|
|
|
6,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common
share |
(b)/(e) |
|
$ |
13.02 |
|
|
$ |
13.28 |
|
|
$ |
13.10 |
|
|
$ |
12.96 |
|
|
$ |
12.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets |
(b)/(a) |
|
|
8.31 |
% |
|
|
8.63 |
% |
|
|
8.59 |
% |
|
|
8.58 |
% |
|
|
8.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common equity (annualized) |
(1) |
|
|
6.77 |
% |
|
|
8.29 |
% |
|
|
4.08 |
% |
|
|
4.76 |
% |
|
|
4.87 |
% |
(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 |
First US Bancshares (NASDAQ:FUSB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
First US Bancshares (NASDAQ:FUSB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024