Fourth Quarter and Full Year 2022
Results
BIRMINGHAM, Ala., Jan. 25,
2023 /PRNewswire/ -- First US Bancshares, Inc.
(Nasdaq: FUSB) (the "Company"), the parent company of First US Bank
(the "Bank"), today reported net income of $2.2 million, or $0.35 per diluted share, for the quarter ended
December 31, 2022 ("4Q2022"), compared to $1.9 million, or $0.29 per diluted share, for the quarter ended
September 30, 2022 ("3Q2022") and
$1.7 million, or $0.25 per diluted share, for the quarter ended
December 31, 2021 ("4Q2021"). For the year ended
December 31, 2022, the Company's net income totaled
$6.9 million, or $1.06 per diluted share, compared to $4.5 million, or $0.66 per diluted share, for the year ended
December 31, 2021, an increase of 60.6% in diluted earnings
per share.
Comparing 2022 to 2021, earnings improvement 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 $4.7
million, or 14.3%, comparing 2022 to 2021.
"We are pleased to wrap up a very strong year of earnings
growth," stated James F. House,
President and CEO of the Company. "The strategic initiatives
that we began 15 to 18 months ago to improve both operating
efficiency and asset quality are reaping significant rewards in the
current environment. The coming year is expected to present
many challenges as we continue to face a rising interest rate
environment and a slowing economy. However, we continue to
believe that our balance sheet is well-positioned for the volatile
environment in which we find ourselves," continued Mr.
House.
Net income grew by $0.4 million,
or 19.8%, in 4Q2022, compared to 3Q2022 due, in part, to growth in
net interest income. Quarter-over-quarter net interest margin
improved by 17 basis points in 4Q2022 compared to 3Q2022. In
addition, the Company's provision for loan and lease losses
decreased by $0.6 million as loan
growth slowed, particularly in the indirect consumer category,
during the last quarter of the year.
Other Fourth 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 December 31, 2022.
|
|
Quarter
Ended
|
|
|
|
2022
|
|
|
2021
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
(Dollars in
Thousands)
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, land
development and other land loans
|
|
$
|
54,396
|
|
|
$
|
36,740
|
|
|
$
|
40,625
|
|
|
$
|
52,817
|
|
|
$
|
67,048
|
|
Secured by 1-4 family
residential properties
|
|
|
88,426
|
|
|
|
84,911
|
|
|
|
69,098
|
|
|
|
69,760
|
|
|
|
72,727
|
|
Secured by
multi-family residential properties
|
|
|
67,917
|
|
|
|
72,446
|
|
|
|
66,848
|
|
|
|
50,796
|
|
|
|
46,000
|
|
Secured by non-farm,
non-residential properties
|
|
|
199,965
|
|
|
|
200,505
|
|
|
|
187,041
|
|
|
|
177,752
|
|
|
|
197,901
|
|
Commercial and
industrial loans
|
|
|
73,555
|
|
|
|
65,920
|
|
|
|
65,792
|
|
|
|
67,455
|
|
|
|
72,286
|
|
Paycheck Protection
Program ("PPP") loans
|
|
|
6
|
|
|
|
31
|
|
|
|
116
|
|
|
|
643
|
|
|
|
1,661
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
consumer
|
|
|
10,053
|
|
|
|
12,279
|
|
|
|
15,419
|
|
|
|
18,023
|
|
|
|
21,689
|
|
Branch
retail
|
|
|
14,237
|
|
|
|
16,278
|
|
|
|
18,634
|
|
|
|
21,891
|
|
|
|
25,692
|
|
Indirect
|
|
|
266,567
|
|
|
|
262,742
|
|
|
|
252,206
|
|
|
|
220,931
|
|
|
|
205,940
|
|
Total loans
|
|
$
|
775,122
|
|
|
$
|
751,852
|
|
|
$
|
715,779
|
|
|
$
|
680,068
|
|
|
$
|
710,944
|
|
Less unearned
interest, fees and deferred costs
|
|
|
1,249
|
|
|
|
1,581
|
|
|
|
1,142
|
|
|
|
1,738
|
|
|
|
2,594
|
|
Allowance for loan and
lease losses
|
|
|
9,422
|
|
|
|
9,373
|
|
|
|
8,751
|
|
|
|
8,484
|
|
|
|
8,320
|
|
Net loans
|
|
$
|
764,451
|
|
|
$
|
740,898
|
|
|
$
|
705,886
|
|
|
$
|
669,846
|
|
|
$
|
700,030
|
|
|
|
The Company's total loan portfolio increased by $23.3 million, or 3.1%, during 4Q2022. Loan
volume increases during the quarter were driven primarily by growth
in the Bank's construction, commercial and industrial, consumer
indirect, and 1-4 family residential secured 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
multi-family residential, 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
December 31, 2022, loans totaled $775.1
million, an increase of $64.2
million, or 9.0%, since December 31, 2021. The majority
of year-over-year growth resulted from the consumer indirect and
multi-family residential categories.
Net Interest Income and Margin – Net interest income
totaled $9.9 million in 4Q2022,
compared to $9.5 million in 3Q2022
and $9.3 million in 4Q2021. 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. Net interest margin was 4.27% in 4Q2022, compared
to 4.10% in both 3Q2022 and 4Q2021. For the year ended
December 31, 2022, net interest income totaled $36.9 million, slightly below $37.0 million for the year ended
December 31, 2021. The decrease in 2022 was attributable
to reductions in interest and fees on ALC loans in connection with
the ALC cessation of business strategy, as well as increases in
interest expense resulting from the rising rate environment.
Comparing 2022 to 2021, interest and fees on ALC loans decreased by
$4.3 million, while the Company's
interest expense increased by $1.3
million. These reductions in net interest income were mostly
offset by growth of $5.6 million in
interest income attributable to the Bank's other earning asset
categories comparing 2022 to 2021. Full-year net interest margin
was 4.07% in 2022, compared to 4.23% in 2021. As ALC's loan
portfolio continues to pay down, there will be continued reduction
in interest and fees attributable to ALC's loans. As of
December 31, 2022, remaining loans,
net of unearned interest and fees, in ALC's portfolio totaled
$20.2 million. This amount represents
a reduction of 57.9% of total loans in ALC's portfolio from
September 30, 2021, immediately
following implementation of the cessation of business
strategy. As the pay down of ALC's loans continues, the
Company is continuing efforts to deploy funds in the Bank's other
loan and investment categories in order to offset reductions in
interest income resulting from the pay down.
Deposit Growth and Deployment of Funds – Deposits totaled
$870.0 million as of
December 31, 2022, compared to $846.5
million as of September 30,
2022, and $838.1 million as of
December 31, 2021. Core deposits, which exclude time deposits
of $250 thousand or more, totaled
$778.1 million, or 89.4% of total
deposits, as of December 31, 2022,
compared to $775.1 million, or 92.5%
of total deposits, as of December 31,
2021. Total average funding costs, including both interest-
and noninterest-bearing deposits and borrowings, was 0.77% in
4Q2022, compared to 0.51% in 3Q2022, and 0.33% in 4Q2021. For
the year ended December 31, 2022, average funding costs
totaled 0.48%, compared to 0.35% for the year ended
December 31, 2021. As the cost of deposits and borrowings
continues to rise, management seeks to deploy earning assets in an
efficient manner to maximize net interest income amid the rising
interest rate environment. During 4Q2022, the Company sold
investment securities with a principal balance totaling
$8.6 million at a net loss of
$83 thousand. The intent of these
sales was to effectively prune the investment portfolio and allow
for reinvestment in higher-earning assets in future periods.
Investment securities, including both the available-for-sale and
held-to-maturity portfolios, totaled $132.7
million as of December 31, 2022, compared to
$145.9 million as of September 30, 2022, and $134.3 million as of December 31, 2021.
Loan Loss Provision – The Company's loan loss provision
totaled $0.5 million in 4Q2022,
compared to $1.2 million in 3Q2022,
and $0.5 million in 4Q2021. The
reduction in provision compared to 3Q2022 resulted primarily from
reduced loan growth in 4Q2022, particularly in the Bank's indirect
consumer portfolio. For the year ended December 31, 2022, loan
loss provisions totaled $3.3 million,
compared to $2.0 million for the year
ended December 31, 2021. The increase in provision
expense comparing 2022 to 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 emerged in 2022. In management's view, the combination of the
business cessation strategy, coupled with deteriorating economic
conditions, including elevated inflation levels, increased overall
credit risk during 2022, particularly in ALC's loan portfolio. Loan
loss provisions recorded by the Company during 2022 included
expense of $2.0 million associated
with ALC's loans and $1.3 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. 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 2023. Management has calculated
a preliminary allowance for credit losses under the CECL accounting
model as of January 1, 2023.
Although the calculation is not final, and is subject to further
evaluation, management currently expects to record an increase to
credit loss reserves upon the adoption of CECL of approximately
$2.4 million. Of this amount,
approximately $0.7 million, or 29%,
is associated with ALC's run-off loan portfolio, while the
remainder is associated with the Bank's loan portfolio. In
accordance with CECL transition accounting guidance, the adjustment
will be recorded directly to retained earnings during the first
quarter of 2023 and will not impact the Company's current period
earnings.
Non-interest Income – Non-interest income totaled
$0.7 million in 4Q2022, compared to
$1.1 million in 3Q2022 and
$0.9 million in 4Q2021. The
decrease comparing 4Q2022 to 3Q2022 resulted primarily from gains
on the sale of premises and equipment in 3Q2022 that were not
repeated in 4Q2022, as well as losses associated with investment
securities sales in 4Q2022. Compared to 4Q2021, the reduction
in 4Q2022 resulted from the losses on sales of investment
securities, combined with reduced service charge and other
ancillary revenues comparing the two periods. For both years
ended December 31, 2022 and 2021,
non-interest income totaled $3.5
million.
Non-interest Expense – Non-interest expense totaled
$7.1 million in 4Q2022, compared to
$7.0 million in 3Q2022, and
$7.4 million in 4Q2021. The
increase in expense comparing 4Q2022 to 3Q2022 resulted primarily
from various miscellaneous expense categories, combined with a
modest increase in salaries and benefits. For the year ended
December 31, 2022, non-interest expense totaled $28.1 million, compared to $32.8 million for the year ended
December 31, 2021, a decrease of 14.3%. The
year-over-year expense decrease 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 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 2022 was further reduced by
$0.3 million in nonrecurring net
gains on the sale of other real estate owned (OREO). Due primarily
to the significant reduction in non-interest expense, the Company's
efficiency ratio improved to 69.5% for the year ended December 31, 2022, compared to 80.9% for the year
ended December 31, 2021.
Asset Quality – The Company's nonperforming assets,
including loans in non-accrual status and OREO, totaled
$2.3 million as of December 31,
2022, compared to $2.8 million as of
September 30, 2022, and $4.2 million as of December 31, 2021. The
reduction in nonperforming assets during 2022 resulted mostly from
the sale of OREO properties during the period. Reductions in OREO
totaled $1.5 million during 2022 and
included the sales of banking centers that were closed in 2021. As
a percentage of total assets, non-performing assets totaled 0.24%
as of December 31, 2022, compared to 0.28% as of September 30, 2022, and 0.43% as of
December 31, 2021. Net charge-offs as a percentage of average
loans increased in 2022 to 0.30% as of December 31, 2022, compared to 0.16% as of
December 31, 2021. The increase
resulted from accelerated charge-offs of ALC's run-off portfolio of
loans.
Shareholders' Equity – As of December 31, 2022,
shareholders' equity totaled $85.1
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 year
ended December 31, 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 as
of December 31, 2022. 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. As of December 31,
2022, the Company's ratio of tangible common equity to
tangible assets totaled 7.84%, compared to 7.67% as of September 30, 2022, and 8.63% as of December 31, 2021.
Share Repurchases - During 2022, the Company
completed share repurchases totaling 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. During 4Q2022, the share
repurchase program was extended through December 31, 2023. Under the program, 596,813
shares remain available for repurchase as of December 31, 2022. No shares were
repurchased during 4Q2022.
Cash Dividend – Commensurate with the earnings growth
experienced in 2022, the Company increased its quarterly dividend
to $0.05 per share of common stock in
4Q2022, a 67% increase over the dividend of $0.03 per share paid during the previous three
quarters of 2022 and all four quarters of 2021.
Regulatory Capital –During 4Q2022, 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 December 31, 2022, the Bank's
common equity Tier 1 capital and Tier 1 risk-based capital ratios
were each 11.07%. As of December 31,
2022, its total capital ratio was 12.19%, and its Tier 1
leverage ratio was 9.39%.
Liquidity – As of December 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 SUBSIDIARIES
|
SELECTED FINANCIAL
DATA – LINKED QUARTERS
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
Quarter
Ended
|
|
|
Year
Ended
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
December
31,
|
|
Results of
Operations:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
Interest
income
|
|
$
|
11,621
|
|
|
$
|
10,670
|
|
|
$
|
9,525
|
|
|
$
|
9,381
|
|
|
$
|
9,987
|
|
|
$
|
41,197
|
|
|
$
|
39,921
|
|
Interest
expense
|
|
|
1,730
|
|
|
|
1,155
|
|
|
|
699
|
|
|
|
672
|
|
|
|
727
|
|
|
|
4,256
|
|
|
|
2,950
|
|
Net interest
income
|
|
|
9,891
|
|
|
|
9,515
|
|
|
|
8,826
|
|
|
|
8,709
|
|
|
|
9,260
|
|
|
|
36,941
|
|
|
|
36,971
|
|
Provision for loan and
lease losses
|
|
|
527
|
|
|
|
1,165
|
|
|
|
895
|
|
|
|
721
|
|
|
|
493
|
|
|
|
3,308
|
|
|
|
2,010
|
|
Net interest income
after provision for loan
and lease losses
|
|
|
9,364
|
|
|
|
8,350
|
|
|
|
7,931
|
|
|
|
7,988
|
|
|
|
8,767
|
|
|
|
33,633
|
|
|
|
34,961
|
|
Non-interest
income
|
|
|
678
|
|
|
|
1,088
|
|
|
|
856
|
|
|
|
829
|
|
|
|
865
|
|
|
|
3,451
|
|
|
|
3,521
|
|
Non-interest
expense
|
|
|
7,106
|
|
|
|
7,032
|
|
|
|
6,878
|
|
|
|
7,056
|
|
|
|
7,414
|
|
|
|
28,072
|
|
|
|
32,756
|
|
Income before income
taxes
|
|
|
2,936
|
|
|
|
2,406
|
|
|
|
1,909
|
|
|
|
1,761
|
|
|
|
2,218
|
|
|
|
9,012
|
|
|
|
5,726
|
|
Provision for income
taxes
|
|
|
708
|
|
|
|
546
|
|
|
|
494
|
|
|
|
400
|
|
|
|
507
|
|
|
|
2,148
|
|
|
|
1,275
|
|
Net income
|
|
$
|
2,228
|
|
|
$
|
1,860
|
|
|
$
|
1,415
|
|
|
$
|
1,361
|
|
|
$
|
1,711
|
|
|
$
|
6,864
|
|
|
$
|
4,451
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.23
|
|
|
$
|
0.22
|
|
|
$
|
0.27
|
|
|
$
|
1.13
|
|
|
$
|
0.70
|
|
Diluted net income per
share
|
|
$
|
0.35
|
|
|
$
|
0.29
|
|
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.25
|
|
|
$
|
1.06
|
|
|
$
|
0.66
|
|
Dividends
declared
|
|
$
|
0.05
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
Key Measures (Period
End):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
994,667
|
|
|
$
|
989,277
|
|
|
$
|
955,385
|
|
|
$
|
968,646
|
|
|
$
|
958,302
|
|
|
|
|
|
|
|
Tangible assets
(1)
|
|
|
986,866
|
|
|
|
981,421
|
|
|
|
947,462
|
|
|
|
960,650
|
|
|
|
950,233
|
|
|
|
|
|
|
|
Loans, net of allowance
for loan losses
|
|
|
764,451
|
|
|
|
740,898
|
|
|
|
705,886
|
|
|
|
669,846
|
|
|
|
700,030
|
|
|
|
|
|
|
|
Allowance for loan and
lease losses
|
|
|
9,422
|
|
|
|
9,373
|
|
|
|
8,751
|
|
|
|
8,484
|
|
|
|
8,320
|
|
|
|
|
|
|
|
Investment securities,
net
|
|
|
132,657
|
|
|
|
145,903
|
|
|
|
152,536
|
|
|
|
137,736
|
|
|
|
134,319
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
870,025
|
|
|
|
846,537
|
|
|
|
844,296
|
|
|
|
853,117
|
|
|
|
838,126
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
20,038
|
|
|
|
40,106
|
|
|
|
10,088
|
|
|
|
10,062
|
|
|
|
10,046
|
|
|
|
|
|
|
|
Long-term
borrowings
|
|
|
10,726
|
|
|
|
10,708
|
|
|
|
10,690
|
|
|
|
10,671
|
|
|
|
10,653
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
85,135
|
|
|
|
83,103
|
|
|
|
82,576
|
|
|
|
87,807
|
|
|
|
90,064
|
|
|
|
|
|
|
|
Tangible common equity
(1)
|
|
|
77,334
|
|
|
|
75,247
|
|
|
|
74,653
|
|
|
|
79,811
|
|
|
|
81,995
|
|
|
|
|
|
|
|
Book value per common
share
|
|
|
14.65
|
|
|
|
14.30
|
|
|
|
14.05
|
|
|
|
14.33
|
|
|
|
14.59
|
|
|
|
|
|
|
|
Tangible book value per
common share (1)
|
|
|
13.31
|
|
|
|
12.95
|
|
|
|
12.70
|
|
|
|
13.02
|
|
|
|
13.28
|
|
|
|
|
|
|
|
Key
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
0.90
|
%
|
|
|
0.75
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.71
|
%
|
|
|
0.70
|
%
|
|
|
0.47
|
%
|
Return on average
common equity (annualized)
|
|
|
10.60
|
%
|
|
|
8.78
|
%
|
|
|
6.55
|
%
|
|
|
6.17
|
%
|
|
|
7.54
|
%
|
|
|
7.99
|
%
|
|
|
5.01
|
%
|
Return on average
tangible common equity (annualized) (1)
|
|
|
11.70
|
%
|
|
|
9.69
|
%
|
|
|
7.21
|
%
|
|
|
6.77
|
%
|
|
|
8.29
|
%
|
|
|
8.80
|
%
|
|
|
5.52
|
%
|
Net interest
margin
|
|
|
4.27
|
%
|
|
|
4.10
|
%
|
|
|
3.91
|
%
|
|
|
3.97
|
%
|
|
|
4.10
|
%
|
|
|
4.07
|
%
|
|
|
4.23
|
%
|
Efficiency ratio
(2)
|
|
|
67.2
|
%
|
|
|
66.3
|
%
|
|
|
71.0
|
%
|
|
|
74.0
|
%
|
|
|
73.2
|
%
|
|
|
69.5
|
%
|
|
|
80.9
|
%
|
Net loans to
deposits
|
|
|
87.9
|
%
|
|
|
87.5
|
%
|
|
|
83.6
|
%
|
|
|
78.5
|
%
|
|
|
83.5
|
%
|
|
|
|
|
|
|
Net loans to
assets
|
|
|
76.9
|
%
|
|
|
74.9
|
%
|
|
|
73.9
|
%
|
|
|
69.2
|
%
|
|
|
73.0
|
%
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (1)
|
|
|
7.84
|
%
|
|
|
7.67
|
%
|
|
|
7.88
|
%
|
|
|
8.31
|
%
|
|
|
8.63
|
%
|
|
|
|
|
|
|
Tier 1 leverage ratio
(3)
|
|
|
9.39
|
%
|
|
|
9.23
|
%
|
|
|
9.33
|
%
|
|
|
9.38
|
%
|
|
|
9.17
|
%
|
|
|
|
|
|
|
Allowance for loan
losses as % of loans
|
|
|
1.22
|
%
|
|
|
1.25
|
%
|
|
|
1.22
|
%
|
|
|
1.25
|
%
|
|
|
1.17
|
%
|
|
|
|
|
|
|
Nonperforming assets as
% of total assets
|
|
|
0.24
|
%
|
|
|
0.28
|
%
|
|
|
0.18
|
%
|
|
|
0.32
|
%
|
|
|
0.43
|
%
|
|
|
|
|
|
|
Net charge-offs as a
percentage of average loans
|
|
|
0.25
|
%
|
|
|
0.29
|
%
|
|
|
0.36
|
%
|
|
|
0.32
|
%
|
|
|
0.18
|
%
|
|
|
0.30
|
%
|
|
|
0.16
|
%
|
|
(1)
Refer to Non-GAAP reconciliation of tangible balances and measures
beginning on page 11.
|
(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
December 31, 2022 AND 2021
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
759,128
|
|
|
$
|
10,677
|
|
|
|
5.58
|
%
|
|
$
|
715,882
|
|
|
$
|
9,503
|
|
|
|
5.27
|
%
|
Taxable investment
securities
|
|
|
137,894
|
|
|
|
735
|
|
|
|
2.11
|
%
|
|
|
127,605
|
|
|
|
444
|
|
|
|
1.38
|
%
|
Tax-exempt investment
securities
|
|
|
1,746
|
|
|
|
5
|
|
|
|
1.14
|
%
|
|
|
3,091
|
|
|
|
13
|
|
|
|
1.67
|
%
|
Federal Home Loan Bank
stock
|
|
|
1,491
|
|
|
|
20
|
|
|
|
5.32
|
%
|
|
|
870
|
|
|
|
8
|
|
|
|
3.65
|
%
|
Federal funds
sold
|
|
|
995
|
|
|
|
10
|
|
|
|
3.99
|
%
|
|
|
80
|
|
|
|
—
|
|
|
|
—
|
|
Interest-bearing
deposits in banks
|
|
|
18,340
|
|
|
|
174
|
|
|
|
3.76
|
%
|
|
|
48,310
|
|
|
|
19
|
|
|
|
0.16
|
%
|
Total interest-earning
assets
|
|
|
919,594
|
|
|
|
11,621
|
|
|
|
5.01
|
%
|
|
|
895,838
|
|
|
|
9,987
|
|
|
|
4.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
66,369
|
|
|
|
|
|
|
|
|
|
66,147
|
|
|
|
|
|
|
|
Total
|
|
$
|
985,963
|
|
|
|
|
|
|
|
|
$
|
961,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
237,049
|
|
|
$
|
200
|
|
|
|
0.33
|
%
|
|
$
|
244,258
|
|
|
$
|
128
|
|
|
|
0.21
|
%
|
Savings
deposits
|
|
|
215,728
|
|
|
|
510
|
|
|
|
0.94
|
%
|
|
|
204,063
|
|
|
|
145
|
|
|
|
0.28
|
%
|
Time
deposits
|
|
|
224,373
|
|
|
|
707
|
|
|
|
1.25
|
%
|
|
|
212,891
|
|
|
|
295
|
|
|
|
0.55
|
%
|
Total interest-bearing
deposits
|
|
|
677,150
|
|
|
|
1,417
|
|
|
|
0.83
|
%
|
|
|
661,212
|
|
|
|
568
|
|
|
|
0.34
|
%
|
Noninterest-bearing
demand deposits
|
|
|
179,568
|
|
|
|
—
|
|
|
|
—
|
|
|
|
179,331
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
856,718
|
|
|
|
1,417
|
|
|
|
0.66
|
%
|
|
|
840,543
|
|
|
|
568
|
|
|
|
0.27
|
%
|
Borrowings
|
|
|
36,144
|
|
|
|
313
|
|
|
|
3.44
|
%
|
|
|
20,678
|
|
|
|
159
|
|
|
|
3.05
|
%
|
Total funding
costs
|
|
|
892,862
|
|
|
|
1,730
|
|
|
|
0.77
|
%
|
|
|
861,221
|
|
|
|
727
|
|
|
|
0.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
9,711
|
|
|
|
|
|
|
|
|
|
10,758
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
83,390
|
|
|
|
|
|
|
|
|
|
90,006
|
|
|
|
|
|
|
|
Total
|
|
$
|
985,963
|
|
|
|
|
|
|
|
|
$
|
961,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
9,891
|
|
|
|
|
|
|
|
|
$
|
9,260
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
4.27
|
%
|
|
|
|
|
|
|
|
|
4.10
|
%
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
|
NET INTEREST
MARGIN
|
YEAR ENDED
DECEMBER 31, 2022 AND 2021
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
724,639
|
|
|
$
|
38,015
|
|
|
|
5.25
|
%
|
|
$
|
685,010
|
|
|
$
|
38,229
|
|
|
|
5.58
|
%
|
Taxable investment
securities
|
|
|
141,283
|
|
|
|
2,631
|
|
|
|
1.86
|
%
|
|
|
107,141
|
|
|
|
1,503
|
|
|
|
1.40
|
%
|
Tax-exempt investment
securities
|
|
|
2,342
|
|
|
|
36
|
|
|
|
1.54
|
%
|
|
|
3,370
|
|
|
|
60
|
|
|
|
1.78
|
%
|
Federal Home Loan Bank
stock
|
|
|
1,247
|
|
|
|
53
|
|
|
|
4.25
|
%
|
|
|
928
|
|
|
|
34
|
|
|
|
3.66
|
%
|
Federal funds
sold
|
|
|
584
|
|
|
|
22
|
|
|
|
3.77
|
%
|
|
|
83
|
|
|
|
—
|
|
|
|
—
|
|
Interest-bearing
deposits in banks
|
|
|
38,379
|
|
|
|
440
|
|
|
|
1.15
|
%
|
|
|
76,972
|
|
|
|
95
|
|
|
|
0.12
|
%
|
Total interest-earning
assets
|
|
|
908,474
|
|
|
|
41,197
|
|
|
|
4.53
|
%
|
|
|
873,504
|
|
|
|
39,921
|
|
|
|
4.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
65,855
|
|
|
|
|
|
|
|
|
|
66,782
|
|
|
|
|
|
|
|
Total
|
|
$
|
974,329
|
|
|
|
|
|
|
|
|
$
|
940,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
246,124
|
|
|
$
|
638
|
|
|
|
0.26
|
%
|
|
$
|
236,084
|
|
|
$
|
553
|
|
|
|
0.23
|
%
|
Savings
deposits
|
|
|
208,672
|
|
|
|
1,204
|
|
|
|
0.58
|
%
|
|
|
193,766
|
|
|
|
599
|
|
|
|
0.31
|
%
|
Time
deposits
|
|
|
212,591
|
|
|
|
1,540
|
|
|
|
0.72
|
%
|
|
|
226,425
|
|
|
|
1,517
|
|
|
|
0.67
|
%
|
Total interest-bearing
deposits
|
|
|
667,387
|
|
|
|
3,382
|
|
|
|
0.51
|
%
|
|
|
656,275
|
|
|
|
2,669
|
|
|
|
0.41
|
%
|
Noninterest-bearing
demand deposits
|
|
|
182,032
|
|
|
|
—
|
|
|
|
—
|
|
|
|
172,187
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
849,419
|
|
|
|
3,382
|
|
|
|
0.40
|
%
|
|
|
828,462
|
|
|
|
2,669
|
|
|
|
0.32
|
%
|
Borrowings
|
|
|
30,048
|
|
|
|
874
|
|
|
|
2.91
|
%
|
|
|
13,512
|
|
|
|
281
|
|
|
|
2.08
|
%
|
Total funding
costs
|
|
|
879,467
|
|
|
|
4,256
|
|
|
|
0.48
|
%
|
|
|
841,974
|
|
|
|
2,950
|
|
|
|
0.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
8,977
|
|
|
|
|
|
|
|
|
|
9,416
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
85,885
|
|
|
|
|
|
|
|
|
|
88,896
|
|
|
|
|
|
|
|
Total
|
|
$
|
974,329
|
|
|
|
|
|
|
|
|
$
|
940,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
36,941
|
|
|
|
|
|
|
|
|
$
|
36,971
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
4.07
|
%
|
|
|
|
|
|
|
|
|
4.23
|
%
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
|
YEAR-END CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
Cash and due from
banks
|
|
$
|
11,844
|
|
|
$
|
10,843
|
|
Interest-bearing
deposits in banks
|
|
|
18,308
|
|
|
|
50,401
|
|
Total cash and cash
equivalents
|
|
|
30,152
|
|
|
|
61,244
|
|
Federal funds
sold
|
|
|
1,768
|
|
|
|
82
|
|
Investment securities
available-for-sale, at fair value
|
|
|
130,795
|
|
|
|
130,883
|
|
Investment securities
held-to-maturity, at amortized cost
|
|
|
1,862
|
|
|
|
3,436
|
|
Federal Home Loan Bank
stock, at cost
|
|
|
1,359
|
|
|
|
870
|
|
Loans, net of allowance
for loan and lease losses of $9,422 and $8,320,
respectively
|
|
|
764,451
|
|
|
|
700,030
|
|
Premises and equipment,
net of accumulated depreciation of $21,623 and $21,916,
respectively
|
|
|
24,439
|
|
|
|
25,123
|
|
Cash surrender value of
bank-owned life insurance
|
|
|
16,399
|
|
|
|
16,141
|
|
Accrued interest
receivable
|
|
|
3,011
|
|
|
|
2,556
|
|
Goodwill and core
deposit intangible, net
|
|
|
7,801
|
|
|
|
8,069
|
|
Other real estate
owned
|
|
|
686
|
|
|
|
2,149
|
|
Other assets
|
|
|
11,944
|
|
|
|
7,719
|
|
Total
assets
|
|
$
|
994,667
|
|
|
$
|
958,302
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest-bearing
|
|
$
|
169,822
|
|
|
$
|
174,501
|
|
Interest-bearing
|
|
|
700,203
|
|
|
|
663,625
|
|
Total
deposits
|
|
|
870,025
|
|
|
|
838,126
|
|
Accrued interest
expense
|
|
|
607
|
|
|
|
224
|
|
Other
liabilities
|
|
|
8,136
|
|
|
|
9,189
|
|
Short-term
borrowings
|
|
|
20,038
|
|
|
|
10,046
|
|
Long-term
borrowings
|
|
|
10,726
|
|
|
|
10,653
|
|
Total
liabilities
|
|
|
909,532
|
|
|
|
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
|
|
|
14,510
|
|
|
|
14,163
|
|
Accumulated other
comprehensive loss, net of tax
|
|
|
(7,241)
|
|
|
|
(276)
|
|
Retained
earnings
|
|
|
104,460
|
|
|
|
98,428
|
|
Less treasury stock:
1,867,401 and 1,462,540 shares at cost, respectively
|
|
|
(26,669)
|
|
|
|
(22,326)
|
|
Total shareholders'
equity
|
|
|
85,135
|
|
|
|
90,064
|
|
Total liabilities and
shareholders' equity
|
|
$
|
994,667
|
|
|
$
|
958,302
|
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
|
YEAR-END CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
10,676
|
|
|
$
|
9,503
|
|
|
$
|
38,015
|
|
|
$
|
38,229
|
|
Interest on investment
securities
|
|
|
945
|
|
|
|
484
|
|
|
|
3,182
|
|
|
|
1,692
|
|
Total interest
income
|
|
|
11,621
|
|
|
|
9,987
|
|
|
|
41,197
|
|
|
|
39,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
1,418
|
|
|
|
569
|
|
|
|
3,382
|
|
|
|
2,669
|
|
Interest on
borrowings
|
|
|
312
|
|
|
|
158
|
|
|
|
874
|
|
|
|
281
|
|
Total interest
expense
|
|
|
1,730
|
|
|
|
727
|
|
|
|
4,256
|
|
|
|
2,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
9,891
|
|
|
|
9,260
|
|
|
|
36,941
|
|
|
|
36,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and
lease losses
|
|
|
527
|
|
|
|
493
|
|
|
|
3,308
|
|
|
|
2,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after provision for loan and lease losses
|
|
|
9,364
|
|
|
|
8,767
|
|
|
|
33,633
|
|
|
|
34,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
charges on deposit accounts
|
|
|
250
|
|
|
|
292
|
|
|
|
1,154
|
|
|
|
1,069
|
|
Net (loss) gain on
sales and prepayments of investment securities
|
|
|
(83)
|
|
|
|
—
|
|
|
|
(83)
|
|
|
|
22
|
|
Lease
income
|
|
|
229
|
|
|
|
211
|
|
|
|
864
|
|
|
|
830
|
|
Other income,
net
|
|
|
282
|
|
|
|
362
|
|
|
|
1,516
|
|
|
|
1,600
|
|
Total non-interest
income
|
|
|
678
|
|
|
|
865
|
|
|
|
3,451
|
|
|
|
3,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
4,029
|
|
|
|
4,206
|
|
|
|
16,418
|
|
|
|
19,157
|
|
Net occupancy and
equipment
|
|
|
813
|
|
|
|
1,070
|
|
|
|
3,281
|
|
|
|
4,388
|
|
Computer
services
|
|
|
415
|
|
|
|
421
|
|
|
|
1,639
|
|
|
|
1,832
|
|
Fees for professional
services
|
|
|
249
|
|
|
|
272
|
|
|
|
1,060
|
|
|
|
1,275
|
|
Other
expense
|
|
|
1,600
|
|
|
|
1,445
|
|
|
|
5,674
|
|
|
|
6,104
|
|
Total non-interest
expense
|
|
|
7,106
|
|
|
|
7,414
|
|
|
|
28,072
|
|
|
|
32,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
2,936
|
|
|
|
2,218
|
|
|
|
9,012
|
|
|
|
5,726
|
|
Provision for income
taxes
|
|
|
708
|
|
|
|
507
|
|
|
|
2,148
|
|
|
|
1,275
|
|
Net income
|
|
$
|
2,228
|
|
|
$
|
1,711
|
|
|
$
|
6,864
|
|
|
$
|
4,451
|
|
Basic net income per
share
|
|
$
|
0.37
|
|
|
$
|
0.27
|
|
|
$
|
1.13
|
|
|
$
|
0.70
|
|
Diluted net income per
share
|
|
$
|
0.35
|
|
|
$
|
0.25
|
|
|
$
|
1.06
|
|
|
$
|
0.66
|
|
Dividends per
share
|
|
$
|
0.05
|
|
|
$
|
0.03
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
|
|
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
|
|
|
Year
Ended
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
|
|
(Unaudited
Reconciliation)
|
|
TANGIBLE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
994,667
|
|
|
$
|
989,277
|
|
|
$
|
955,385
|
|
|
$
|
968,646
|
|
|
$
|
958,302
|
|
|
|
|
|
|
|
Less:
Goodwill
|
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
|
|
|
|
Less: Core deposit
intangible
|
|
|
|
|
366
|
|
|
|
421
|
|
|
|
488
|
|
|
|
561
|
|
|
|
634
|
|
|
|
|
|
|
|
Tangible
assets
|
|
(a)
|
|
$
|
986,866
|
|
|
$
|
981,421
|
|
|
$
|
947,462
|
|
|
$
|
960,650
|
|
|
$
|
950,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
$
|
85,135
|
|
|
$
|
83,103
|
|
|
$
|
82,576
|
|
|
$
|
87,807
|
|
|
$
|
90,064
|
|
|
|
|
|
|
|
Less:
Goodwill
|
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
|
|
|
|
Less: Core deposit
intangible
|
|
|
|
|
366
|
|
|
|
421
|
|
|
|
488
|
|
|
|
561
|
|
|
|
634
|
|
|
|
|
|
|
|
Tangible common
equity
|
|
(b)
|
|
$
|
77,334
|
|
|
$
|
75,247
|
|
|
$
|
74,653
|
|
|
$
|
79,811
|
|
|
$
|
81,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
|
$
|
83,390
|
|
|
$
|
84,085
|
|
|
$
|
86,650
|
|
|
$
|
89,502
|
|
|
$
|
90,010
|
|
|
$
|
85,885
|
|
|
$
|
88,896
|
|
Less: Average
goodwill
|
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
|
|
7,435
|
|
Less: Average core
deposit intangible
|
|
|
|
|
392
|
|
|
|
451
|
|
|
|
523
|
|
|
|
596
|
|
|
|
669
|
|
|
|
490
|
|
|
|
794
|
|
Average tangible
shareholders' equity
|
|
(c)
|
|
$
|
75,563
|
|
|
$
|
76,199
|
|
|
$
|
78,692
|
|
|
$
|
81,471
|
|
|
$
|
81,906
|
|
|
$
|
77,960
|
|
|
$
|
80,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
(d)
|
|
$
|
2,228
|
|
|
$
|
1,860
|
|
|
$
|
1,415
|
|
|
$
|
1,361
|
|
|
$
|
1,711
|
|
|
$
|
6,864
|
|
|
$
|
4,451
|
|
Common shares
outstanding (in thousands)
|
|
(e)
|
|
|
5,812
|
|
|
|
5,812
|
|
|
|
5,876
|
|
|
|
6,130
|
|
|
|
6,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
(b)/(e)
|
|
$
|
13.31
|
|
|
$
|
12.95
|
|
|
$
|
12.70
|
|
|
$
|
13.02
|
|
|
$
|
13.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
|
(b)/(a)
|
|
|
7.84
|
%
|
|
|
7.67
|
%
|
|
|
7.88
|
%
|
|
|
8.31
|
%
|
|
|
8.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
(1)
|
|
|
11.70
|
%
|
|
|
9.69
|
%
|
|
|
7.21
|
%
|
|
|
6.77
|
%
|
|
|
8.29
|
%
|
|
|
8.80
|
%
|
|
|
5.52
|
%
|
|
(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-60-6-year-over-year-diluted-eps-growth-301730050.html
SOURCE First US Bancshares, Inc.