Reports 31.4% Quarter-Over-Quarter Earnings
Growth
BIRMINGHAM, Ala., Oct. 26,
2022 /PRNewswire/ -- First US Bancshares, Inc.
(Nasdaq: FUSB) (the "Company"), the parent company of First US Bank
(the "Bank"), today reported net income of $1.9 million, or $0.29 per diluted share, for the quarter ended
September 30, 2022 ("3Q2022"), compared to $0.8 million, or $0.13 per diluted share, for the quarter ended
September 30, 2021 ("3Q2021") and $1.4
million, or $0.22 per diluted
share, for the quarter ended June 30,
2022 ("2Q2022"). Net income totaled $4.6 million for the nine months ended
September 30, 2022, compared to $2.7
million for the nine months ended September 30,
2021. Diluted earnings per share totaled $0.71 for the nine months ended
September 30, 2022, compared to $0.41 per diluted share during the corresponding
period of 2021.
Earnings improvement, comparing both 3Q2022 and the nine months
ended September 30, 2022 to
corresponding periods in 2021, was driven primarily by reductions
in non-interest expense following strategic initiatives that were
initiated by the Company beginning in the third quarter of 2021.
The strategic initiatives included the cessation of new business
development at the Bank's wholly owned subsidiary, Acceptance Loan
Company, Inc. ("ALC"), as well as efforts to reorganize the Bank's
retail banking, technology and deposit operations functions. As a
result of these efforts, non-interest expense was reduced by
$1.5 million, or 17.7%, comparing
3Q2022 to 3Q2021 and by $4.4 million,
or 17.3%, comparing the nine months ended September 30, 2022, to the nine months ended
September 30, 2021. Comparing
3Q2022 to 2Q2022, non-interest expense decreased by $0.2 million, or 2.2%.
"The business simplification efforts that we launched in 2021,
combined with solid loan growth during the past two quarters have
contributed to strong earnings growth both in the third quarter and
for the year," stated James F.
House, President and CEO of the Company. "As we move
forward, our team remains very focused on the economic challenges
that have emerged, including the potential impacts of inflation,
rising interest rates and a slowing economy on our borrowers and
depositors. We believe that our balance sheet is
well-positioned for the volatile environment that we are entering,"
continued Mr. House.
Other Second 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 September 30, 2022.
|
|
|
Quarter
Ended
|
|
|
|
2022
|
|
|
2021
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
|
(Dollars in
Thousands)
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
(Unaudited)
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land
development and other land loans
|
|
$
|
36,740
|
|
|
$
|
40,625
|
|
|
$
|
52,817
|
|
|
$
|
67,048
|
|
|
$
|
58,175
|
|
Secured by 1-4 family
residential properties
|
|
|
84,911
|
|
|
|
69,098
|
|
|
|
69,760
|
|
|
|
72,727
|
|
|
|
73,112
|
|
Secured by
multi-family residential properties
|
|
|
72,446
|
|
|
|
66,848
|
|
|
|
50,796
|
|
|
|
46,000
|
|
|
|
51,420
|
|
Secured by non-farm,
non-residential properties
|
|
|
200,505
|
|
|
|
187,041
|
|
|
|
177,752
|
|
|
|
197,901
|
|
|
|
198,745
|
|
Commercial and
industrial loans
|
|
|
65,920
|
|
|
|
65,792
|
|
|
|
67,455
|
|
|
|
72,286
|
|
|
|
73,777
|
|
Paycheck Protection
Program ("PPP") loans
|
|
|
31
|
|
|
|
116
|
|
|
|
643
|
|
|
|
1,661
|
|
|
|
3,902
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
consumer
|
|
|
12,279
|
|
|
|
15,419
|
|
|
|
18,023
|
|
|
|
21,689
|
|
|
|
25,845
|
|
Branch
retail
|
|
|
16,278
|
|
|
|
18,634
|
|
|
|
21,891
|
|
|
|
25,692
|
|
|
|
29,764
|
|
Indirect
sales
|
|
|
262,742
|
|
|
|
252,206
|
|
|
|
220,931
|
|
|
|
205,940
|
|
|
|
194,154
|
|
Total loans
|
|
$
|
751,852
|
|
|
$
|
715,779
|
|
|
$
|
680,068
|
|
|
$
|
710,944
|
|
|
$
|
708,894
|
|
Less unearned
interest, fees and deferred costs
|
|
|
1,581
|
|
|
|
1,142
|
|
|
|
1,738
|
|
|
|
2,594
|
|
|
|
3,729
|
|
Allowance for loan and
lease losses
|
|
|
9,373
|
|
|
|
8,751
|
|
|
|
8,484
|
|
|
|
8,320
|
|
|
|
8,193
|
|
Net loans
|
|
$
|
740,898
|
|
|
$
|
705,886
|
|
|
$
|
669,846
|
|
|
$
|
700,030
|
|
|
$
|
696,972
|
|
The Company's total loan portfolio increased by $36.1 million, or 5.0%, during 3Q2022. Loan
volume increases resulted from growth primarily in the Bank's
residential (secured by multi-family and 1-4 family residential
properties), commercial real estate (secured by non-farm,
non-residential properties), and consumer indirect
categories. Growth in these categories was consistent with
continued commercial economic activity and resiliency in consumer
demand during the quarter. Loan growth was partially offset
by decreases in the construction, direct consumer, and branch
retail categories. The decreases in direct consumer and
branch retail loans were consistent with management's expectations
related to the Company's business cessation strategy at ALC.
As of September 30, 2022, loans totaled $751.9 million, an increase of $40.9 million, or 5.8%, since December 31,
2021.
Net Interest Income and Margin – Net interest income
totaled $9.5 million in 3Q2022,
compared to $9.3 million in 3Q2021
and $8.8 million in 2Q2022. The
improvement compared to both prior quarters resulted from loan
growth, as well as margin expansion as earning assets repriced
faster than interest-bearing liabilities amid the rising interest
rate environment. For the nine months ended September 30,
2022, net interest income totaled $27.1
million, compared to $27.7
million for the nine months ended September 30,
2021. The decrease comparing the nine months ended
September 30, 2022 to the
corresponding period of 2021, was attributable to reductions in
interest and fees on ALC loans in connection with the ALC cessation
of business strategy. Interest and fees on ALC loans
decreased by $3.1 million comparing
the nine months ended September 30,
2022 to the corresponding period of 2021. The decrease
related to ALC loans was partially offset by interest income in the
Bank's other earning asset categories, which increased by
$2.7 million comparing the nine
months ended September 30, 2022 to
the nine months ended September 30,
2021. As ALC's loan portfolio continues to pay down, there
will be continued reduction in interest and fees attributable to
ALC's loans. The reductions in loans at ALC have put downward
pressure on total loan yield and net interest margin. As a result
of the changing mix of earning assets, the Company's net interest
margin was reduced to 4.10% in 3Q2022, compared to 4.17% in
3Q2021. For the nine months ended September 30, 2022,
net interest margin was 4.00%, compared to 4.29% for the nine
months ended September 30, 2021. Though net interest income
and margin have decreased as a result of the cessation of ALC's
business, significant non-interest expense savings have also
developed, and ultimately, reductions in losses and loan loss
provisioning are also expected. Historically, ALC's loan portfolio
has represented both the Company's highest yielding loans, as well
as the portfolio with the highest level of credit losses.
Accordingly, while interest earned on these loans has decreased,
losses and loan loss provision expense are expected to decrease in
the future after the portfolio has paid down. As the pay down
continues, management is continuing efforts to grow earning assets
in the Bank's other loan and investment categories, while at the
same time maintaining pricing discipline on deposit costs and
earning asset yields consistent with the current interest rate
environment. As of September 30,
2022, remaining loans, net of unearned interest and fees, in
ALC's portfolio totaled $23.8
million. This amount represents 49.7% of the total loans in
ALC's portfolio as of September 30,
2021, immediately following implementation of the cessation
of business strategy.
Deposit Growth and Deployment of Funds – Deposits totaled
$846.5 million as of
September 30, 2022, compared to $838.1
million as of December 31, 2021, an increase of
$8.4 million, or 1.0%. Total average
funding costs, including both interest- and noninterest-bearing
deposits and borrowings, was 0.51% in 3Q2022, compared to 0.32% in
3Q2021. For the nine months ended September 30, 2022,
average funding costs totaled 0.39%, compared to 0.36% during the
corresponding period of 2021. In the current rising interest
rate environment, management continues to seek to deploy earning
assets in an efficient manner, including growth in both loans and
investment securities. Investment securities, including both the
available-for-sale and held-to-maturity portfolios totaled
$145.9 million as of
September 30, 2022, compared to $134.3
million as of December 31, 2021. The expected
average life of securities in the investment portfolio as of
September 30, 2022 was 3.59 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
$1.2 million in 3Q2022, compared to
$0.6 million in 3Q2021. For the
nine months ended September 30, 2022, loan loss provisions
totaled $2.8 million, compared to
$1.5 million for the nine months
ended September 30, 2021. The increase in provision
expense comparing both the quarter and nine months ended
September 30, 2022 to the corresponding periods of 2021
reflected both an increase in charge-offs associated with ALC's
loan portfolio, as well as qualitative adjustments applied to the
portfolio in response to heightened inflationary trends and other
economic uncertainties that have emerged in 2022. In management's
view, the combination of the business cessation strategy, coupled
with deteriorating economic conditions, including elevated
inflation levels, has increased overall credit risk during 2022,
particularly in ALC's loan portfolio. Loan loss provisions recorded
by the Company during the first nine months of 2022 included
expense of $1.6 million associated
with ALC's loans and $1.2 million
associated with the Bank's portfolio. While loan loss provisions at
ALC resulted primarily from increased charge-offs and heightened
economic risk factors, provisions at the Bank resulted primarily
from loan growth. 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 is continuing to evaluate the impact that the adoption
of CECL will have on the Company's financial statements.
Non-interest Income – Non-interest income totaled
$1.1 million in 3Q2022, compared to
$0.9 million in 3Q2021. For the
nine months ended September 30, 2022, non-interest income
totaled $2.8 million, compared to
$2.7 million for the corresponding
period of 2021.
Non-interest Expense – Non-interest expense totaled
$7.0 million in 3Q2022, compared to
$8.5 million in 3Q2021. For the nine
months ended September 30, 2022, non-interest expense totaled
$21.0 million, compared to
$25.3 million for the nine months
ended September 30, 2021. The expense decreases in 2022
have resulted primarily from the cessation of ALC's business, as
well as other efficiency efforts conducted by the Bank. As a
result of these efforts, significant expense reductions were
realized associated with salaries and employee benefits, occupancy
and equipment, and other expenses associated with technology and
professional services. Non-interest expense during the nine
months ended September 30, 2022 was
further reduced by $0.3 million in
nonrecurring net gains on the sale of other real estate owned
(OREO). Due primarily to significant reduction in non-interest
expense, the Company's efficiency ratio improved to 66.3% in
3Q2022, compared to 83.5% in 3Q2021.
Asset Quality – The Company's nonperforming assets,
including loans in non-accrual status and OREO, totaled
$2.8 million as of September 30, 2022, compared to $1.7 million as of June
30, 2022, and $4.2 million as
of December 31, 2021. The increase in
nonperforming assets during 3Q2022 resulted primarily from two loan
relationships (one from the commercial and industrial category and
one from the secured by 1-4 family category) that moved into
nonaccrual status during the quarter. The reduction in
nonperforming assets during the first nine months of 2022 resulted
from the sale of OREO properties during the period. Reductions in
OREO totaled $1.5 million and
included the sale of banking centers that were closed in 2021. As a
percentage of total assets, non-performing assets totaled 0.28% as
of September 30, 2022, compared to
0.18% as of June 30, 2022, and 0.43%
as of December 31, 2021.
Shareholders' Equity – As of September 30,
2022, shareholders' equity totaled $83.1
million, compared to $90.1
million as of December 31, 2021. The decrease in
shareholders' equity resulted from reductions in accumulated other
comprehensive income due to declines in the market value of the
Company's available-for-sale investment portfolio, as well as
repurchases of shares of the Company's common stock during the nine
months ended September 30, 2022. The
market value declines in investment securities available-for-sale
were the direct result of the increasing interest rate environment
in 2022. 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.
Share Repurchases - During 3Q2022, the Company
completed share repurchases totaling 64,000 shares of its common
stock at a weighted average price of $10.20 per share. For the nine months ended
September 30, 2022, the Company
repurchased a total of 412,400 shares of its common stock at a
weighted average price per share of $10.87. 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 September 30, 2022, 596,813 shares remained
available for repurchase under the program.
Cash Dividend – The Company declared a cash dividend of
$0.03 per share on its common stock
in 3Q2022. The dividend was consistent with dividends paid during
the prior two quarters of 2022 and all four quarters of
2021.
Regulatory Capital –During 3Q2022, 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 September 30, 2022, the Bank's
common equity Tier 1 capital and Tier 1 risk-based capital ratios
were each 11.09%. Its total capital ratio was 12.23%, and its Tier
1 leverage ratio was 9.23%.
Liquidity – As of September 30, 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 SUBSIDIARIES
|
SELECTED FINANCIAL
DATA – LINKED QUARTERS
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
|
Nine Months
Ended
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
September
30,
|
|
|
September
30,
|
|
Results of
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
10,670
|
|
|
$
|
9,525
|
|
|
$
|
9,381
|
|
|
$
|
9,987
|
|
|
$
|
10,030
|
|
|
$
|
29,576
|
|
|
$
|
29,934
|
|
Interest
expense
|
|
|
1,155
|
|
|
|
699
|
|
|
|
672
|
|
|
|
727
|
|
|
|
695
|
|
|
|
2,526
|
|
|
|
2,223
|
|
Net interest
income
|
|
|
9,515
|
|
|
|
8,826
|
|
|
|
8,709
|
|
|
|
9,260
|
|
|
|
9,335
|
|
|
|
27,050
|
|
|
|
27,711
|
|
Provision for loan and
lease losses
|
|
|
1,165
|
|
|
|
895
|
|
|
|
721
|
|
|
|
493
|
|
|
|
618
|
|
|
|
2,781
|
|
|
|
1,517
|
|
Net interest income
after provision for loan
and lease losses
|
|
|
8,350
|
|
|
|
7,931
|
|
|
|
7,988
|
|
|
|
8,767
|
|
|
|
8,717
|
|
|
|
24,269
|
|
|
|
26,194
|
|
Non-interest
income
|
|
|
1,088
|
|
|
|
856
|
|
|
|
829
|
|
|
|
865
|
|
|
|
896
|
|
|
|
2,773
|
|
|
|
2,656
|
|
Non-interest
expense
|
|
|
7,032
|
|
|
|
6,878
|
|
|
|
7,056
|
|
|
|
7,414
|
|
|
|
8,547
|
|
|
|
20,966
|
|
|
|
25,342
|
|
Income before income
taxes
|
|
|
2,406
|
|
|
|
1,909
|
|
|
|
1,761
|
|
|
|
2,218
|
|
|
|
1,066
|
|
|
|
6,076
|
|
|
|
3,508
|
|
Provision for income
taxes
|
|
|
546
|
|
|
|
494
|
|
|
|
400
|
|
|
|
507
|
|
|
|
229
|
|
|
|
1,440
|
|
|
|
768
|
|
Net income
|
|
$
|
1,860
|
|
|
$
|
1,415
|
|
|
$
|
1,361
|
|
|
$
|
1,711
|
|
|
$
|
837
|
|
|
$
|
4,636
|
|
|
$
|
2,740
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
$
|
0.31
|
|
|
$
|
0.23
|
|
|
$
|
0.22
|
|
|
$
|
0.27
|
|
|
$
|
0.13
|
|
|
$
|
0.76
|
|
|
$
|
0.43
|
|
Diluted net income per
share
|
|
$
|
0.29
|
|
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.25
|
|
|
$
|
0.13
|
|
|
$
|
0.71
|
|
|
$
|
0.41
|
|
Dividends
declared
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
Key Measures (Period
End):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
989,277
|
|
|
$
|
955,385
|
|
|
$
|
968,646
|
|
|
$
|
958,302
|
|
|
$
|
956,734
|
|
|
|
|
|
|
|
Tangible assets
(1)
|
|
|
981,421
|
|
|
|
947,462
|
|
|
|
960,650
|
|
|
|
950,233
|
|
|
|
948,592
|
|
|
|
|
|
|
|
Loans, net of allowance
for loan losses
|
|
|
740,898
|
|
|
|
705,886
|
|
|
|
669,846
|
|
|
|
700,030
|
|
|
|
696,972
|
|
|
|
|
|
|
|
Allowance for loan and
lease losses
|
|
|
9,373
|
|
|
|
8,751
|
|
|
|
8,484
|
|
|
|
8,320
|
|
|
|
8,193
|
|
|
|
|
|
|
|
Investment securities,
net
|
|
|
145,903
|
|
|
|
152,536
|
|
|
|
137,736
|
|
|
|
134,319
|
|
|
|
121,467
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
846,537
|
|
|
|
844,296
|
|
|
|
853,117
|
|
|
|
838,126
|
|
|
|
846,842
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
40,106
|
|
|
|
10,088
|
|
|
|
10,062
|
|
|
|
10,046
|
|
|
|
10,037
|
|
|
|
|
|
|
|
Long-term
borrowings
|
|
|
10,708
|
|
|
|
10,690
|
|
|
|
10,671
|
|
|
|
10,653
|
|
|
|
-
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
83,103
|
|
|
|
82,576
|
|
|
|
87,807
|
|
|
|
90,064
|
|
|
|
89,597
|
|
|
|
|
|
|
|
Tangible common equity
(1)
|
|
|
75,247
|
|
|
|
74,653
|
|
|
|
79,811
|
|
|
|
81,995
|
|
|
|
81,455
|
|
|
|
|
|
|
|
Book value per common
share
|
|
|
14.30
|
|
|
|
14.05
|
|
|
|
14.33
|
|
|
|
14.59
|
|
|
|
14.41
|
|
|
|
|
|
|
|
Tangible book value per
common share (1)
|
|
|
12.95
|
|
|
|
12.70
|
|
|
|
13.02
|
|
|
|
13.28
|
|
|
|
13.10
|
|
|
|
|
|
|
|
Key
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
0.75
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.71
|
%
|
|
|
0.35
|
%
|
|
|
0.64
|
%
|
|
|
0.39
|
%
|
Return on average
common equity (annualized)
|
|
|
8.78
|
%
|
|
|
6.55
|
%
|
|
|
6.17
|
%
|
|
|
7.54
|
%
|
|
|
3.71
|
%
|
|
|
7.15
|
%
|
|
|
4.14
|
%
|
Return on average
tangible common equity (annualized) (1)
|
|
|
9.69
|
%
|
|
|
7.21
|
%
|
|
|
6.77
|
%
|
|
|
8.29
|
%
|
|
|
4.08
|
%
|
|
|
7.87
|
%
|
|
|
4.57
|
%
|
Net interest
margin
|
|
|
4.10
|
%
|
|
|
3.91
|
%
|
|
|
3.97
|
%
|
|
|
4.10
|
%
|
|
|
4.17
|
%
|
|
|
4.00
|
%
|
|
|
4.29
|
%
|
Efficiency ratio
(2)
|
|
|
66.3
|
%
|
|
|
71.0
|
%
|
|
|
74.0
|
%
|
|
|
73.2
|
%
|
|
|
83.5
|
%
|
|
|
70.3
|
%
|
|
|
83.5
|
%
|
Net loans to
deposits
|
|
|
87.5
|
%
|
|
|
83.6
|
%
|
|
|
78.5
|
%
|
|
|
83.5
|
%
|
|
|
82.3
|
%
|
|
|
|
|
|
|
Net loans to
assets
|
|
|
74.9
|
%
|
|
|
73.9
|
%
|
|
|
69.2
|
%
|
|
|
73.0
|
%
|
|
|
72.8
|
%
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (1)
|
|
|
7.67
|
%
|
|
|
7.88
|
%
|
|
|
8.31
|
%
|
|
|
8.63
|
%
|
|
|
8.59
|
%
|
|
|
|
|
|
|
Tier 1 leverage ratio
(3)
|
|
|
9.23
|
%
|
|
|
9.33
|
%
|
|
|
9.38
|
%
|
|
|
9.17
|
%
|
|
|
8.51
|
%
|
|
|
|
|
|
|
Allowance for loan
losses as % of loans
|
|
|
1.25
|
%
|
|
|
1.22
|
%
|
|
|
1.25
|
%
|
|
|
1.17
|
%
|
|
|
1.16
|
%
|
|
|
|
|
|
|
Nonperforming assets as
% of total assets
|
|
|
0.28
|
%
|
|
|
0.18
|
%
|
|
|
0.32
|
%
|
|
|
0.43
|
%
|
|
|
0.35
|
%
|
|
|
|
|
|
|
Net charge-offs as a
percentage of average loans
|
|
|
0.29
|
%
|
|
|
0.36
|
%
|
|
|
0.32
|
%
|
|
|
0.18
|
%
|
|
|
0.09
|
%
|
|
|
0.24
|
%
|
|
|
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 SUBSIDIARIES
|
NET INTEREST MARGIN
|
THREE MONTHS ENDED
September 30, 2022 AND 2021
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2022
|
|
|
September 30,
2021
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
743,145
|
|
|
$
|
9,750
|
|
|
|
5.21
|
%
|
|
$
|
691,435
|
|
|
$
|
9,568
|
|
|
|
5.49
|
%
|
Taxable investment
securities
|
|
|
148,964
|
|
|
|
748
|
|
|
|
1.99
|
%
|
|
|
119,943
|
|
|
|
409
|
|
|
|
1.35
|
%
|
Tax-exempt investment
securities
|
|
|
2,322
|
|
|
|
8
|
|
|
|
1.37
|
%
|
|
|
3,367
|
|
|
|
15
|
|
|
|
1.77
|
%
|
Federal Home Loan Bank
stock
|
|
|
1,808
|
|
|
|
17
|
|
|
|
3.73
|
%
|
|
|
870
|
|
|
|
8
|
|
|
|
3.65
|
%
|
Federal funds
sold
|
|
|
1,984
|
|
|
|
11
|
|
|
|
2.20
|
%
|
|
|
86
|
|
|
|
—
|
|
|
|
—
|
|
Interest-bearing
deposits in banks
|
|
|
23,166
|
|
|
|
136
|
|
|
|
2.33
|
%
|
|
|
73,490
|
|
|
|
30
|
|
|
|
0.16
|
%
|
Total interest-earning
assets
|
|
|
921,389
|
|
|
|
10,670
|
|
|
|
4.59
|
%
|
|
|
889,191
|
|
|
|
10,030
|
|
|
|
4.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
64,593
|
|
|
|
|
|
|
|
|
|
67,067
|
|
|
|
|
|
|
|
Total
|
|
$
|
985,982
|
|
|
|
|
|
|
|
|
$
|
956,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
243,131
|
|
|
$
|
182
|
|
|
|
0.30
|
%
|
|
$
|
239,188
|
|
|
$
|
141
|
|
|
|
0.23
|
%
|
Savings
deposits
|
|
|
211,724
|
|
|
|
342
|
|
|
|
0.64
|
%
|
|
|
208,187
|
|
|
|
160
|
|
|
|
0.30
|
%
|
Time
deposits
|
|
|
209,361
|
|
|
|
340
|
|
|
|
0.64
|
%
|
|
|
223,988
|
|
|
|
351
|
|
|
|
0.62
|
%
|
Total interest-bearing
deposits
|
|
|
664,216
|
|
|
|
864
|
|
|
|
0.52
|
%
|
|
|
671,363
|
|
|
|
652
|
|
|
|
0.39
|
%
|
Noninterest-bearing
demand deposits
|
|
|
183,612
|
|
|
|
—
|
|
|
|
—
|
|
|
|
176,102
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
847,828
|
|
|
|
864
|
|
|
|
0.40
|
%
|
|
|
847,465
|
|
|
|
652
|
|
|
|
0.31
|
%
|
Borrowings
|
|
|
45,427
|
|
|
|
291
|
|
|
|
2.54
|
%
|
|
|
10,032
|
|
|
|
43
|
|
|
|
1.70
|
%
|
Total funding
costs
|
|
|
893,255
|
|
|
|
1,155
|
|
|
|
0.51
|
%
|
|
|
857,497
|
|
|
|
695
|
|
|
|
0.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
8,642
|
|
|
|
|
|
|
|
|
|
9,158
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
84,085
|
|
|
|
|
|
|
|
|
|
89,603
|
|
|
|
|
|
|
|
Total
|
|
$
|
985,982
|
|
|
|
|
|
|
|
|
$
|
956,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
9,515
|
|
|
|
|
|
|
|
|
$
|
9,335
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
4.10
|
%
|
|
|
|
|
|
|
|
|
4.17
|
%
|
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
|
NET INTEREST
MARGIN
|
nine months ended
September 30, 2022 AND 2021
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2022
|
|
|
September 30,
2021
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
713,015
|
|
|
$
|
27,339
|
|
|
|
5.13
|
%
|
|
$
|
672,807
|
|
|
$
|
28,726
|
|
|
|
5.71
|
%
|
Taxable investment
securities
|
|
|
142,425
|
|
|
|
1,896
|
|
|
|
1.78
|
%
|
|
|
100,245
|
|
|
|
1,059
|
|
|
|
1.41
|
%
|
Tax-exempt investment
securities
|
|
|
2,543
|
|
|
|
31
|
|
|
|
1.63
|
%
|
|
|
3,464
|
|
|
|
47
|
|
|
|
1.81
|
%
|
Federal Home Loan Bank
stock
|
|
|
1,165
|
|
|
|
33
|
|
|
|
3.79
|
%
|
|
|
948
|
|
|
|
25
|
|
|
|
3.53
|
%
|
Federal funds
sold
|
|
|
853
|
|
|
|
12
|
|
|
|
1.88
|
%
|
|
|
84
|
|
|
|
—
|
|
|
|
—
|
|
Interest-bearing
deposits in banks
|
|
|
45,133
|
|
|
|
265
|
|
|
|
0.79
|
%
|
|
|
86,632
|
|
|
|
77
|
|
|
|
0.12
|
%
|
Total interest-earning
assets
|
|
|
905,134
|
|
|
|
29,576
|
|
|
|
4.37
|
%
|
|
|
864,180
|
|
|
|
29,934
|
|
|
|
4.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
65,379
|
|
|
|
|
|
|
|
|
|
68,041
|
|
|
|
|
|
|
|
Total
|
|
$
|
970,513
|
|
|
|
|
|
|
|
|
$
|
932,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
249,183
|
|
|
$
|
438
|
|
|
|
0.24
|
%
|
|
$
|
233,329
|
|
|
$
|
425
|
|
|
|
0.24
|
%
|
Savings
deposits
|
|
|
206,294
|
|
|
|
693
|
|
|
|
0.45
|
%
|
|
|
190,296
|
|
|
|
453
|
|
|
|
0.32
|
%
|
Time
deposits
|
|
|
208,621
|
|
|
|
833
|
|
|
|
0.53
|
%
|
|
|
230,986
|
|
|
|
1,222
|
|
|
|
0.71
|
%
|
Total interest-bearing
deposits
|
|
|
664,098
|
|
|
|
1,964
|
|
|
|
0.40
|
%
|
|
|
654,611
|
|
|
|
2,100
|
|
|
|
0.43
|
%
|
Noninterest-bearing
demand deposits
|
|
|
182,862
|
|
|
|
—
|
|
|
|
—
|
|
|
|
169,780
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
846,960
|
|
|
|
1,964
|
|
|
|
0.31
|
%
|
|
|
824,391
|
|
|
|
2,100
|
|
|
|
0.34
|
%
|
Borrowings
|
|
|
27,994
|
|
|
|
562
|
|
|
|
2.68
|
%
|
|
|
10,022
|
|
|
|
123
|
|
|
|
1.64
|
%
|
Total funding
costs
|
|
|
874,954
|
|
|
|
2,526
|
|
|
|
0.39
|
%
|
|
|
834,413
|
|
|
|
2,223
|
|
|
|
0.36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
8,833
|
|
|
|
|
|
|
|
|
|
9,288
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
86,726
|
|
|
|
|
|
|
|
|
|
88,520
|
|
|
|
|
|
|
|
Total
|
|
$
|
970,513
|
|
|
|
|
|
|
|
|
$
|
932,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
27,050
|
|
|
|
|
|
|
|
|
$
|
27,711
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
4.00
|
%
|
|
|
|
|
|
|
|
|
4.29
|
%
|
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
|
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
Cash and due from
banks
|
|
$
|
11,608
|
|
|
$
|
10,843
|
|
Interest-bearing
deposits in banks
|
|
|
25,212
|
|
|
|
50,401
|
|
Total cash and cash
equivalents
|
|
|
36,820
|
|
|
|
61,244
|
|
Federal funds
sold
|
|
|
120
|
|
|
|
82
|
|
Investment securities
available-for-sale, at fair value
|
|
|
143,794
|
|
|
|
130,883
|
|
Investment securities
held-to-maturity, at amortized cost
|
|
|
2,109
|
|
|
|
3,436
|
|
Federal Home Loan Bank
stock, at cost
|
|
|
2,009
|
|
|
|
870
|
|
Loans, net of allowance
for loan and lease losses of $9,373 and $8,320,
respectively
|
|
|
740,898
|
|
|
|
700,030
|
|
Premises and equipment,
net of accumulated depreciation of $21,338 and $21,916,
respectively
|
|
|
24,209
|
|
|
|
25,123
|
|
Cash surrender value of
bank-owned life insurance
|
|
|
16,360
|
|
|
|
16,141
|
|
Accrued interest
receivable
|
|
|
2,691
|
|
|
|
2,556
|
|
Goodwill and core
deposit intangible, net
|
|
|
7,856
|
|
|
|
8,069
|
|
Other real estate
owned
|
|
|
686
|
|
|
|
2,149
|
|
Other assets
|
|
|
11,725
|
|
|
|
7,719
|
|
Total
assets
|
|
$
|
989,277
|
|
|
$
|
958,302
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest-bearing
|
|
$
|
177,778
|
|
|
$
|
174,501
|
|
Interest-bearing
|
|
|
668,759
|
|
|
|
663,625
|
|
Total
deposits
|
|
|
846,537
|
|
|
|
838,126
|
|
Accrued interest
expense
|
|
|
719
|
|
|
|
224
|
|
Other
liabilities
|
|
|
8,104
|
|
|
|
9,189
|
|
Short-term
borrowings
|
|
|
40,106
|
|
|
|
10,046
|
|
Long-term
borrowings
|
|
|
10,708
|
|
|
|
10,653
|
|
Total
liabilities
|
|
|
906,174
|
|
|
|
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; 5,812,258
and 6,172,378 shares outstanding,
respectively
|
|
|
75
|
|
|
|
75
|
|
Additional paid-in
capital
|
|
|
14,386
|
|
|
|
14,163
|
|
Accumulated other
comprehensive loss, net of tax
|
|
|
(7,212
|
)
|
|
|
(276
|
)
|
Retained
earnings
|
|
|
102,523
|
|
|
|
98,428
|
|
Less treasury stock:
1,867,401 and 1,462,540 shares at cost, respectively
|
|
|
(26,669
|
)
|
|
|
(22,326
|
)
|
Total shareholders'
equity
|
|
|
83,103
|
|
|
|
90,064
|
|
Total liabilities and
shareholders' equity
|
|
$
|
989,277
|
|
|
$
|
958,302
|
|
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
9,750
|
|
|
$
|
9,568
|
|
|
$
|
27,339
|
|
|
$
|
28,726
|
|
Interest on investment
securities
|
|
|
920
|
|
|
|
462
|
|
|
|
2,237
|
|
|
|
1,208
|
|
Total interest
income
|
|
|
10,670
|
|
|
|
10,030
|
|
|
|
29,576
|
|
|
|
29,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
864
|
|
|
|
652
|
|
|
|
1,964
|
|
|
|
2,100
|
|
Interest on
borrowings
|
|
|
291
|
|
|
|
43
|
|
|
|
562
|
|
|
|
123
|
|
Total interest
expense
|
|
|
1,155
|
|
|
|
695
|
|
|
|
2,526
|
|
|
|
2,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
9,515
|
|
|
|
9,335
|
|
|
|
27,050
|
|
|
|
27,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and
lease losses
|
|
|
1,165
|
|
|
|
618
|
|
|
|
2,781
|
|
|
|
1,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after provision for loan and lease losses
|
|
|
8,350
|
|
|
|
8,717
|
|
|
|
24,269
|
|
|
|
26,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
charges on deposit accounts
|
|
|
311
|
|
|
|
271
|
|
|
|
904
|
|
|
|
777
|
|
Net gain on sales and
prepayments of investment securities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
Lease
income
|
|
|
210
|
|
|
|
208
|
|
|
|
635
|
|
|
|
619
|
|
Other income,
net
|
|
|
567
|
|
|
|
417
|
|
|
|
1,234
|
|
|
|
1,238
|
|
Total non-interest
income
|
|
|
1,088
|
|
|
|
896
|
|
|
|
2,773
|
|
|
|
2,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
4,007
|
|
|
|
5,045
|
|
|
|
12,389
|
|
|
|
14,951
|
|
Net occupancy and
equipment
|
|
|
861
|
|
|
|
1,259
|
|
|
|
2,468
|
|
|
|
3,318
|
|
Computer
services
|
|
|
417
|
|
|
|
461
|
|
|
|
1,224
|
|
|
|
1,411
|
|
Fees for professional
services
|
|
|
263
|
|
|
|
292
|
|
|
|
811
|
|
|
|
1,003
|
|
Other
expense
|
|
|
1,484
|
|
|
|
1,490
|
|
|
|
4,074
|
|
|
|
4,659
|
|
Total non-interest
expense
|
|
|
7,032
|
|
|
|
8,547
|
|
|
|
20,966
|
|
|
|
25,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
2,406
|
|
|
|
1,066
|
|
|
|
6,076
|
|
|
|
3,508
|
|
Provision for income
taxes
|
|
|
546
|
|
|
|
229
|
|
|
|
1,440
|
|
|
|
768
|
|
Net income
|
|
$
|
1,860
|
|
|
$
|
837
|
|
|
$
|
4,636
|
|
|
$
|
2,740
|
|
Basic net income per
share
|
|
$
|
0.31
|
|
|
$
|
0.13
|
|
|
$
|
0.76
|
|
|
$
|
0.43
|
|
Diluted net income per
share
|
|
$
|
0.29
|
|
|
$
|
0.13
|
|
|
$
|
0.71
|
|
|
$
|
0.41
|
|
Dividends per
share
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
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
|
|
|
Nine Months
Ended
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
|
|
(Unaudited
Reconciliation)
|
|
TANGIBLE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
989,277
|
|
|
$
|
955,385
|
|
|
$
|
968,646
|
|
|
$
|
958,302
|
|
|
$
|
956,734
|
|
|
|
|
|
|
|
Less:
Goodwill
|
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
|
|
|
|
Less: Core deposit
intangible
|
|
|
|
|
421
|
|
|
|
488
|
|
|
|
561
|
|
|
|
634
|
|
|
|
707
|
|
|
|
|
|
|
|
Tangible
assets
|
|
(a)
|
|
$
|
981,421
|
|
|
$
|
947,462
|
|
|
$
|
960,650
|
|
|
$
|
950,233
|
|
|
$
|
948,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
$
|
83,103
|
|
|
$
|
82,576
|
|
|
$
|
87,807
|
|
|
$
|
90,064
|
|
|
$
|
89,597
|
|
|
|
|
|
|
|
Less:
Goodwill
|
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
|
|
|
|
Less: Core deposit
intangible
|
|
|
|
|
421
|
|
|
|
488
|
|
|
|
561
|
|
|
|
634
|
|
|
|
707
|
|
|
|
|
|
|
|
Tangible common
equity
|
|
(b)
|
|
$
|
75,247
|
|
|
$
|
74,653
|
|
|
$
|
79,811
|
|
|
$
|
81,995
|
|
|
$
|
81,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
|
$
|
84,085
|
|
|
$
|
86,650
|
|
|
$
|
89,502
|
|
|
$
|
90,010
|
|
|
$
|
89,603
|
|
|
$
|
86,726
|
|
|
$
|
88,520
|
|
Less: Average
goodwill
|
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
Less: Average core
deposit intangible
|
|
|
|
|
451
|
|
|
|
523
|
|
|
|
596
|
|
|
|
669
|
|
|
|
746
|
|
|
|
523
|
|
|
|
836
|
|
Average tangible
shareholders' equity
|
|
(c)
|
|
$
|
76,199
|
|
|
$
|
78,692
|
|
|
$
|
81,471
|
|
|
$
|
81,906
|
|
|
$
|
81,422
|
|
|
$
|
78,768
|
|
|
$
|
80,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
(d)
|
|
$
|
1,860
|
|
|
$
|
1,415
|
|
|
$
|
1,361
|
|
|
$
|
1,711
|
|
|
$
|
837
|
|
|
$
|
4,636
|
|
|
$
|
2,740
|
|
Common shares
outstanding (in thousands)
|
|
(e)
|
|
|
5,812
|
|
|
|
5,876
|
|
|
|
6,130
|
|
|
|
6,172
|
|
|
|
6,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
(b)/(e)
|
|
$
|
12.95
|
|
|
$
|
12.70
|
|
|
$
|
13.02
|
|
|
$
|
13.28
|
|
|
$
|
13.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
|
(b)/(a)
|
|
|
7.67
|
%
|
|
|
7.88
|
%
|
|
|
8.31
|
%
|
|
|
8.63
|
%
|
|
|
8.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
(1)
|
|
|
9.69
|
%
|
|
|
7.21
|
%
|
|
|
6.77
|
%
|
|
|
8.29
|
%
|
|
|
4.08
|
%
|
|
|
7.87
|
%
|
|
|
4.57
|
%
|
|
(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
|
View original
content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-third-quarter-2022-results-301660426.html
SOURCE First US Bancshares, Inc.