FUSB First US Bancshares Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 24, 2024

 

	First US Bancshares, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware	000-14549	63-0843362
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 

3291 U.S. Highway 280

Birmingham, Alabama 35243

(Address of Principal Executive Offices, including Zip Code)

Registrant’s telephone number, including area code: (205) 582-1200

N/A

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FUSB	The Nasdaq Stock Market LLC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§230.405 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02	Results of Operations and Financial Condition.

 

On October 24, 2024, First US Bancshares, Inc. issued a press release announcing financial results for the quarter ended September 30, 2024. The press release is attached as Exhibit 99.1 to this Form 8-K and is furnished to, but not filed with, the Commission.

 

Item 9.01	Financial Statements and Exhibits.

 

(d)	Exhibits.

 

Exhibit Number	Exhibit
99.1	Press Release dated October 24, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: October 24, 2024	FIRST US BANCSHARES, INC.
	By:	/s/ Thomas S. Elley
	Name:	Thomas S. Elley
		Senior Executive Vice President, Treasurer and Assistant Secretary,
		Chief Financial Officer and Principal Accounting Officer

 

 

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	Exhibit 99.1

First US Bancshares, Inc. Reports Third Quarter and Year-to-Date Earnings: Nine-month Diluted EPS Growth of $0.07 Over 2023

BIRMINGHAM, AL (October 24, 2024) – Third Quarter Highlights:

 

Net Income	Diluted Earnings per share	Return on average assets (annualized)	Return on average common equity (annualized)	Return on average tangible common equity (annualized) (1)	Loans to deposits
$2.2 million	$0.36	0.82%	9.21%	9.99%	81.9%

 

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 $0.36 per diluted share, for the quarter ended September 30, 2024 (“3Q2024”), compared to $2.1 million, or $0.34 per diluted share, for the quarter ended June 30, 2024 (“2Q2024”) and $2.1 million, or $0.33 per diluted share, for the quarter ended September 30, 2023 (“3Q2023”). For the nine months ended September 30, 2024, net income totaled $6.5 million, or $1.04 per diluted share, compared to $6.2 million, or $0.97 per diluted share for the nine months ended September 30, 2023.

 

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

 

		Quarter Ended																				Nine Months Ended
		2024												2023								2024				2023
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
Results of Operations:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest income		$	15,017			$	14,546			$	14,277			$	13,945			$	13,902			$	43,840			$	38,861
Interest expense			5,832				5,370				5,237				4,835				4,419				16,439				10,621
Net interest income			9,185				9,176				9,040				9,110				9,483				27,401				28,240
Provision for (recovery of) credit losses			152				-				-				(434	)			184				152				753
Net interest income after provision for (recovery of) credit losses			9,033				9,176				9,040				9,544				9,299				27,249				27,487
Non-interest income			901				835				865				916				837				2,601				2,465
Non-interest expense			6,990				7,272				7,147				7,401				7,319				21,409				21,740
Income before income taxes			2,944				2,739				2,758				3,059				2,817				8,441				8,212
Provision for income taxes			722				612				651				782				704				1,985				2,004
Net income		$	2,222			$	2,127			$	2,107			$	2,277			$	2,113			$	6,456			$	6,208
Per Share Data:
Basic net income per share		$	0.38			$	0.36			$	0.36			$	0.38			$	0.35			$	1.10			$	1.04
Diluted net income per share		$	0.36			$	0.34			$	0.34			$	0.36			$	0.33			$	1.04			$	0.97
Dividends declared		$	0.05			$	0.05			$	0.05			$	0.05			$	0.05			$	0.15			$	0.15
Key Measures (Period End):
Total assets		$	1,100,235			$	1,083,313			$	1,070,541			$	1,072,940			$	1,065,239
Tangible assets (1)			1,092,733				1,075,781				1,062,972				1,065,334				1,057,597
Total loans			803,308				819,126				822,941				821,791				815,300
Allowance for credit losses ("ACL") on loans and leases			10,116				10,227				10,436				10,507				11,380
Investment securities, net			145,044				144,876				126,363				136,669				127,823
Total deposits			981,149				954,455				943,268				950,191				927,038
Short-term borrowings			-				15,000				15,000				10,000				30,000
Long-term borrowings			10,854				10,836				10,817				10,799				10,781
Total shareholders’ equity			98,491				93,836				92,326				90,593				87,408
Tangible common equity (1)			90,989				86,304				84,757				82,987				79,766
Book value per common share			17.23				16.34				15.95				15.80				14.88
Tangible book value per common share (1)			15.92				15.03				14.65				14.47				13.58
Key Ratios:
Return on average assets (annualized)			0.82	%			0.80	%			0.80	%			0.86	%			0.80	%			0.81	%			0.81	%
Return on average common equity (annualized)			9.21	%			9.23	%			9.25	%			10.31	%			9.65	%			9.23	%			9.71	%
Return on average tangible common equity (annualized) (1)			9.99	%			10.05	%			10.08	%			11.29	%			10.58	%			10.04	%			10.67	%
Net interest margin			3.60	%			3.69	%			3.65	%			3.67	%			3.79	%			3.65	%			3.93	%
Efficiency ratio (2)			69.3	%			72.6	%			72.2	%			73.8	%			70.9	%			71.4	%			70.8	%
Total loans to deposits			81.9	%			85.8	%			87.2	%			86.5	%			87.9	%
Total loans to assets			73.0	%			75.6	%			76.9	%			76.6	%			76.5	%
Common equity to total assets			8.95	%			8.66	%			8.62	%			8.44	%			8.21	%
Tangible common equity to tangible assets (1)			8.33	%			8.02	%			7.97	%			7.79	%			7.54	%
Tier 1 leverage ratio (3)			9.49	%			9.46	%			9.37	%			9.36	%			9.09	%
ACL on loans and leases as % of total loans			1.26	%			1.25	%			1.27	%			1.28	%			1.40	%
Nonperforming assets as % of total assets			0.60	%			0.27	%			0.28	%			0.28	%			0.29	%
Net charge-offs as a percentage of average loans			0.12	%			0.10	%			0.09	%			0.19	%			0.10	%			0.10	%			0.12	%

 

(1) Refer to Non-GAAP reconciliation of tangible balances and measures beginning on page 10.

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

(3)  First US Bank Tier 1 leverage ratio

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CEO Commentary

 

“We are pleased to report continued improvement in earnings per share, as well as a balance sheet poised for growth,” stated James F. House, President and CEO of the Company. “Although loan growth has not developed this year, market volatility has provided opportunities to strengthen the Company’s balance sheet, and we have capitalized on those opportunities. This includes both the deployment of funds into favorably yielding investment securities, as well as strategies aimed at reducing interest expense over time. Our team remains focused on sound and prudent growth that will further enhance our balance sheet positioning and lead to even stronger profitability,” continued Mr. House.

 

Financial Results

 

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

		Quarter Ended
		2024						2023
		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		$53,098		$72,183		$102,282		$88,140		$90,051
Secured by 1-4 family residential properties		70,067		70,272		74,361		76,200		83,876
Secured by multi-family residential properties		100,627		97,527		62,145		62,397		56,506
Secured by non-farm, non-residential properties		224,611		218,386		212,465		213,586		199,116
Commercial and industrial loans		44,872		46,249		57,112		60,515		59,369
Consumer loans:
Direct		5,018		5,272		5,590		5,938		6,544
Branch retail		6,233		6,879		7,794		8,670		9,648
Indirect		298,782		302,358		301,192		306,345		310,190
Total loans and leases held for investment		$803,308		$819,126		$822,941		$821,791		$815,300
Allowance for credit losses on loans and leases		10,116		10,227		10,436		10,507		11,380
Net loans and leases held for investment		$793,192		$808,899		$812,505		$811,284		$803,920

 

Total loan volume decreased by $15.8 million, or 1.9%, in 3Q2024, driven primarily by payoffs of construction loans, and to a lesser extent, reductions in the consumer indirect and commercial and industrial ("C&I") loan categories. These reductions were partially offset by growth in commercial real estate (non-farm, non-residential) and multi-family residential loans. During the nine months ended September 30, 2024, total loans decreased by $18.5 million, or 2.2%. While the Company experienced a reduction in loan volume during the first nine months of 2024, average loan balances remained higher than average loan balances during the corresponding period of 2023. For the nine months ended September 30, 2024, average total loans were $821.0 million, compared to $795.0 million during the nine months ended September 30, 2023.

 

Net Interest Income and Margin – Net interest income remained consistent comparing 3Q2024 to 2Q2024, and decreased $0.3 million, or 3.1%, comparing 3Q2024 to 3Q2023. Net interest margin totaled 3.60% for 3Q2024, compared to 3.69% in 2Q2024 and 3.79% in 3Q2023. In general, net interest margin has declined amid the higher interest rate environment that has persisted since 2022 as interest-bearing liabilities repriced at faster rates than interest-bearing assets. The decrease in net interest margin in 3Q2024 compared to 2Q2024 was primarily attributable to reductions of gain accretion in 3Q2024 on previously terminated interest rate swaps, as well as accelerated interest expense associated with fees on brokered deposits that were called during the latter part of 3Q2024. In light of general market interest rate reductions that occurred during 3Q2024, the Company moved to replace callable brokered deposits with lower-rate deposits in an effort to reduce interest expense over time. For the nine months ended September 30, 2024, net interest income totaled $27.4 million, compared to $28.2 million during the nine months ended September 30, 2023. Net interest margin totaled 3.65% for the nine months ended September 30, 2024, compared to 3.93% for the nine months ended September 30, 2023.

 

Deposit Growth – Total deposits increased by $26.7 million, or 2.8%, during 3Q2024, due primarily to growth in interest-bearing demand deposits, and to a lesser extent, growth in interest-bearing time deposits and non-interest-bearing demand deposits. The growth in interest-bearing time deposits was driven primarily by growth of $10.0 million in wholesale brokered time deposits. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $833.5 million, or 85.0% of total deposits, as of September 30, 2024, compared to $819.5 million, or 86.2% of total deposits, as of December 31, 2023.

 

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Deployment of Funds – As of September 30, 2024, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $97.8 million, or 8.9% of total assets, compared to $59.8 million, or 5.6% of total assets, as of December 31, 2023. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $145.0 million as of September 30, 2024, compared to $136.7 million as of December 31, 2023. During the nine months ended September 30, 2024, $27.5 million was invested in taxable U.S. agency-sponsored bonds, resulting in improved yields in the investment portfolio. As of September 30, 2024, the expected average life of securities in the investment portfolio was 4.1 years, compared to 3.9 years as of December 31, 2023.

 

Provision for Credit Losses – During both 3Q2024 and 3Q2023, the Company recorded a provision for credit losses of $0.2 million. No provision for credit losses was recorded during 2Q2024. For the nine months ended September 30, 2024, the provision for credit losses totaled $0.2 million, compared to $0.8 million for the nine months ended September 30, 2023. The decrease in the provision for credit losses comparing the first nine months of 2024 to the corresponding period of 2023 was due primarily to decreases in loan volume, as well as adjustments in economic forecasts that impact the calculation of the allowance for credit losses ("ACL") on loans and leases. As of September 30, 2024, the Company’s ACL on loans and leases as a percentage of total loans was 1.26%, compared to 1.28% as of December 31, 2023.

 

Asset Quality – Nonperforming assets, including loans in non-accrual status and OREO, totaled $6.6 million as of September 30, 2024, compared to $3.0 million as of December 31, 2023. The increase in nonperforming assets comparing September 30, 2024 to December 31, 2023 resulted from two loans (from the C&I and 1-4 family residential categories) that moved into non-accrual status during 3Q2024. As a percentage of total assets, nonperforming assets totaled 0.60% as of September 30, 2024, compared to 0.28% as of December 31, 2023. Annualized net charge-offs as a percentage of average loans during 3Q2024 totaled 0.12%, compared to 0.10% during both 2Q2024 and 3Q2023.

 

Non-interest Income – Non-interest income totaled $0.9 million in 3Q2024, compared to $0.8 million in both 2Q2024 and 3Q2023. For the nine months ended September 30, 2024, non-interest income totaled $2.6 million, compared to $2.5 million for the nine months ended September 30, 2023.

Non-interest Expense – Non-interest expense totaled $7.0 million in 3Q2024, compared to $7.3 million in both 2Q2024 and 3Q2023. For the nine months ended September 30, 2024, non-interest expense totaled $21.4 million, compared to $21.7 million for the nine months ended September 30, 2023. Salaries and benefits expense decreased during the first nine months of 2024, compared to the corresponding period of 2023, primarily due to lower staff levels resulting from strategic initiatives implemented by the Company in prior years. In addition, other expenses were lower during the nine months ended September 30, 2024, compared to the corresponding period of 2023, due primarily to the recovery of check fraud losses and reduced collection expenses. These reductions in non-interest expense during the first nine months of 2024 were partially offset by increases associated with occupancy and professional services expenses, as well as increases in legal, accounting and auditing fees.

 

Shareholders’ Equity – As of September 30, 2024, shareholders’ equity totaled $98.5 million, or 8.95% of total assets, compared to $90.6 million, or 8.44% of total assets, as of December 31, 2023. The increase in shareholders’ equity during the nine months ended September 30, 2024 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during the nine months ended September 30, 2024 by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, as well as the maturity of lower yielding investment securities. The Company’s ratio of tangible common equity to tangible assets was 8.33% as of September 30, 2024, compared to 7.79% as of December 31, 2023.

Cash Dividend – The Company declared a cash dividend of $0.05 per share on its common stock in 3Q2024, consistent with previous quarters in both 2024 and 2023.

 

Share Repurchases – During 3Q2024, the Company completed the repurchase of 29,500 shares of its common stock at a weighted average price of $10.83 per share. The repurchases were completed under the Company’s previously announced share repurchase program. As of September 30, 2024, 352,813 shares remained available for repurchase under the program.

 

Regulatory Capital – During 3Q2024, 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, 2024, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.46%, its total capital ratio was 12.64%, and its Tier 1 leverage ratio was 9.49%.

Liquidity – As of September 30, 2024, the Company continued to maintain funding capacity sufficient to provide adequate liquidity for loan growth, capital expenditures and ongoing operations. The Company benefits from a strong core deposit base, a liquid investment securities portfolio and access to funding from a variety of sources, including federal funds lines with other banking institutions, Federal Home Loan Bank (FHLB) advances, the discount window of the Federal Reserve Bank (FRB), and brokered deposits.

 

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Banking Center Growth – As part of the Company’s overall growth strategy, during the nine months ended September 30, 2024, the Company opened a new banking center in the Bearden area of Knoxville, Tennessee that replaced the Bank’s previously existing Knoxville-Bearden location. In addition, the Company commenced renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location is expected to serve as the Bank’s initial deposit gathering facility in the Daphne/Mobile area, and it is anticipated that the location will open to the public in early 2025.

 

About First US Bancshares, Inc.

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

 

Forward-Looking Statements

 

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

Certain factors that could affect the accuracy of such forward-looking statements and cause actual results to differ materially from those projected in such forward-looking statements are identified in the public filings made by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be considered in light of those factors. Such factors may include risk related to the Company's credit, including that if loan losses are greater than anticipated; the increased lending risks associated with commercial real estate lending; liquidity risks; the impact of national and local market conditions on the Company's business and operations; the rate of growth (or lack thereof) in the economy generally and in the Company’s service areas; 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 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 impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; and other risk factors described from time to time in the Company’s public filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. Relative to the Company’s dividend policy, the payment of cash dividends is subject to the discretion of the Board of Directors and will be determined in light of then-current conditions, including the Company’s earnings, leverage, operations, financial conditions, capital requirements and other factors 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.

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FIRST US BANCSHARES, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

THREE MONTHS ENDED September 30, 2024 AND 2023

(Dollars in Thousands)

(Unaudited)

 

		Three Months Ended												Three Months Ended
		September 30, 2024												September 30, 2023
		Average Balance				Interest				Annualized Yield/ Rate %				Average Balance				Interest				Annualized Yield/ Rate %
ASSETS
Interest-earning assets:
Total loans		$	821,444			$	13,206				6.40	%		$	821,294			$	12,584				6.08	%
Taxable investment securities			143,802				1,117				3.09	%			123,290				682				2.19	%
Tax-exempt investment securities			1,019				4				1.56	%			1,037				3				1.15	%
Federal Home Loan Bank stock			825				16				7.72	%			1,001				21				8.32	%
Federal funds sold and securities purchased under reverse repurchase agreements			5,285				71				5.34	%			1,069				14				5.20	%
Interest-bearing deposits in banks			43,191				603				5.55	%			44,379				598				5.35	%
Total interest-earning assets			1,015,566				15,017				5.88	%			992,070				13,902				5.56	%
Noninterest-earning assets			64,632												61,235
Total		$	1,080,198											$	1,053,305
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
Demand deposits		$	209,322				566				1.08	%		$	206,540				176				0.34	%
Savings deposits			244,022				1,650				2.69	%			244,932				1,570				2.54	%
Time deposits			355,819				3,493				3.91	%			323,824				2,476				3.03	%
Total interest-bearing deposits			809,163				5,709				2.81	%			775,296				4,222				2.16	%
Noninterest-bearing demand deposits			153,171				—				—				161,381				—				—
Total deposits			962,334				5,709				2.36	%			936,677				4,222				1.79	%
Borrowings			11,769				123				4.16	%			19,468				197				4.01	%
Total funding costs			974,103				5,832				2.38	%			956,145				4,419				1.83	%
Other noninterest-bearing liabilities			10,095												10,263
Shareholders’ equity			96,000												86,897
Total		$	1,080,198											$	1,053,305
Net interest income						$	9,185											$	9,483
Net interest margin											3.60	%											3.79	%

 

 

 

 

 

 

 

 

 

 

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FIRST US BANCSHARES, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

NINE MONTHS ENDED September 30, 2024 AND 2023

(Dollars in Thousands)

(Unaudited)

 

		Nine Months Ended												Nine Months Ended
		September 30, 2024												September 30, 2023
		Average Balance				Interest				Annualized Yield/ Rate %				Average Balance				Interest				Annualized Yield/ Rate %
ASSETS
Interest-earning assets:
Total loans		$	821,008			$	38,989				6.34	%		$	795,033			$	35,330				5.94	%
Taxable investment securities			139,876				3,084				2.95	%			126,341				2,033				2.15	%
Tax-exempt investment securities			1,022				10				1.31	%			1,048				10				1.28	%
Federal Home Loan Bank stock			902				53				7.85	%			1,347				75				7.44	%
Federal funds sold and securities purchased under reverse repurchase agreements			5,580				226				5.41	%			1,415				51				4.82	%
Interest-bearing deposits in banks			35,748				1,478				5.52	%			35,437				1,362				5.14	%
Total interest-earning assets			1,004,136				43,840				5.83	%			960,621				38,861				5.41	%
Noninterest-earning assets			66,076												61,484
Total		$	1,070,212											$	1,022,105
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
Demand deposits		$	204,805				1,242				0.81	%		$	216,445				557				0.34	%
Savings deposits			250,528				5,161				2.75	%			221,293				3,279				1.98	%
Time deposits			346,584				9,615				3.71	%			297,708				5,845				2.62	%
Total interest-bearing deposits			801,917				16,018				2.67	%			735,446				9,681				1.76	%
Noninterest-bearing demand deposits			151,317				—				—				162,084				—				—
Total deposits			953,234				16,018				2.24	%			897,530				9,681				1.44	%
Borrowings			13,710				421				4.10	%			29,375				940				4.28	%
Total funding costs			966,944				16,439				2.27	%			926,905				10,621				1.53	%
Other noninterest-bearing liabilities			9,816												9,722
Shareholders’ equity			93,452												85,478
Total		$	1,070,212											$	1,022,105
Net interest income						$	27,401											$	28,240
Net interest margin											3.65	%											3.93	%

 

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FIRST US BANCSHARES, INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands, Except Per Share Data)

 

		September 30,				December 31,
		2024				2023
		(Unaudited)
ASSETS
Cash and due from banks		$	10,867			$	12,987
Interest-bearing deposits in banks			71,442				37,292
Total cash and cash equivalents			82,309				50,279
Federal funds sold and securities purchased under reverse repurchase agreements			15,524				9,475
Investment securities available-for-sale, at fair value			144,275				135,565
Investment securities held-to-maturity, at amortized cost			769				1,104
Federal Home Loan Bank stock, at cost			781				1,201
Loans and leases held for investment			803,308				821,791
Less allowance for credit losses on loans and leases			10,116				10,507
Net loans and leases held for investment			793,192				811,284
Premises and equipment, net of accumulated depreciation			25,042				24,398
Cash surrender value of bank-owned life insurance			16,966				16,702
Accrued interest receivable			3,668				3,976
Goodwill and core deposit intangible, net			7,502				7,606
Other real estate owned			538				602
Other assets			9,669				10,748
Total assets		$	1,100,235			$	1,072,940
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing		$	155,024			$	153,591
Interest-bearing			826,125				796,600
Total deposits			981,149				950,191
Accrued interest expense			2,030				2,030
Other liabilities			7,711				9,327
Short-term borrowings			-				10,000
Long-term borrowings			10,854				10,799
Total liabilities			1,001,744				982,347
Shareholders’ equity:
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,819,565 and     7,738,201 shares issued, respectively; 5,715,388 and 5,735,075 shares outstanding,    respectively			78				75
Additional paid-in capital			15,349				14,972
Accumulated other comprehensive loss, net of tax			(3,479	)			(6,431	)
Retained earnings			115,551				109,959
Less treasury stock: 2,104,177 and 2,003,126 shares at cost, respectively			(29,008	)			(27,982	)
Total shareholders’ equity			98,491				90,593
Total liabilities and shareholders’ equity		$	1,100,235			$	1,072,940

 

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FIRST US BANCSHARES, INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest income:
Interest and fees on loans		$	13,206			$	12,584			$	38,989			$	35,330
Interest on investment securities			1,121				685				3,094				2,043
Interest on deposits in banks			603				598				1,478				1,362
Other			87				35				279				126
Total interest income			15,017				13,902				43,840				38,861
Interest expense:
Interest on deposits			5,709				4,222				16,018				9,681
Interest on borrowings			123				197				421				940
Total interest expense			5,832				4,419				16,439				10,621
Net interest income			9,185				9,483				27,401				28,240
Provision for credit losses			152				184				152				753
Net interest income after provision for credit losses			9,033				9,299				27,249				27,487
Non-interest income:
Service and other charges on deposit accounts			312				302				909				869
Lease income			260				241				770				707
Other income, net			329				294				922				889
Total non-interest income			901				837				2,601				2,465
Non-interest expense:
Salaries and employee benefits			3,837				4,120				11,815				12,310
Net occupancy and equipment			958				897				2,806				2,625
Computer services			449				464				1,336				1,315
Insurance expense and assessments			348				423				1,153				1,156
Fees for professional services			299				331				1,004				735
Other expense			1,099				1,084				3,295				3,599
Total non-interest expense			6,990				7,319				21,409				21,740
Income before income taxes			2,944				2,817				8,441				8,212
Provision for income taxes			722				704				1,985				2,004
Net income		$	2,222			$	2,113			$	6,456			$	6,208
Basic net income per share		$	0.38			$	0.35			$	1.10			$	1.04
Diluted net income per share		$	0.36			$	0.33			$	1.04			$	0.97
Dividends per share		$	0.05			$	0.05			$	0.15			$	0.15

 

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Non-GAAP Financial Measures

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

The non-GAAP measures and ratios that have been provided in this press release include measures of liquidity, 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 consolidated financial statements previously presented in this press release.

 

Liquidity Measures

The table below provides information combining the Company’s on-balance sheet liquidity with readily available off-balance sheet sources of liquidity as of both September 30, 2024 and December 31, 2023.

 

	September 30,  2024				December 31,  2023
	(Dollars in Thousands)
	(Unaudited)				(Unaudited)
Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements:
Cash and cash equivalents	$	82,309			$	50,279
Federal funds sold and securities purchased under reverse repurchase agreements		15,524				9,475
Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements		97,833				59,754
Liquidity from pledgable investment securities:
Investment securities available-for sale, at fair value		144,275				135,565
Investment securities held-to-maturity, at amortized cost		769				1,104
Less: securities pledged		(39,585	)			(41,375	)
Less: estimated collateral value discounts		(9,930	)			(11,129	)
Total liquidity from pledgable investment securities		95,529				84,165
Liquidity from unused lendable collateral (loans) at FHLB		24,771				21,696
Liquidity from unused lendable collateral (loans and securities) at FRB		165,157				161,729
Unsecured lines of credit with banks		48,000				48,000
Total readily available liquidity	$	431,290			$	375,344

 

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

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

The unused lendable collateral value at the FHLB presented in the table represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of September 30, 2024 and

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December 31, 2023, the Company's total remaining credit availability with the FHLB was $294.8 million and $279.4 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company’s on-balance sheet and other readily available liquidity provide strong indicators of the Company’s ability to fund obligations in a stressed liquidity environment.

 

Excluding wholesale brokered deposits, as of September 30, 2024, the Company had approximately 30 thousand deposit accounts with an average balance of approximately $30.4 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $233.4 million, or 23.8% of total deposits, as of September 30, 2024. As of December 31, 2023, estimated uninsured deposits totaled $200.3 million, or 21.1% of total deposits.

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.

 

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				Quarter Ended										Nine Months Ended
				2024						2023				2024		2023
				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				$1,100,235		$1,083,313		$1,070,541		$1,072,940		$1,065,239
Less: Goodwill				7,435		7,435		7,435		7,435		7,435
Less: Core deposit intangible				67		97		134		171		207
Tangible assets		(a)		$1,092,733		$1,075,781		$1,062,972		$1,065,334		$1,057,597
Total shareholders’ equity				$98,491		$93,836		$92,326		$90,593		$87,408
Less: Goodwill				7,435		7,435		7,435		7,435		7,435
Less: Core deposit intangible				67		97		134		171		207
Tangible common equity		(b)		$90,989		$86,304		$84,757		$82,987		$79,766
Average shareholders’ equity				$96,000		$92,682		$91,645		$87,615		$86,897		$93,452		$85,478
Less: Average goodwill				7,435		7,435		7,435		7,435		7,435		7,435		7,435
Less: Average core deposit intangible				80		115		151		188		229		115		282
Average tangible shareholders’ equity		(c)		$88,485		$85,132		$84,059		$79,992		$79,233		$85,902		$77,761
Net income		(d)		$2,222		$2,127		$2,107		$2,277		$2,113		$6,456		$6,208
Common shares outstanding (in thousands)		(e)		5,715		5,744		5,787		5,735		5,875
TANGIBLE MEASURES
Tangible book value per common share		(b)/(e)		$15.92		$15.03		$14.65		$14.47		$13.58
Tangible common equity to tangible assets		(b)/(a)		8.33%		8.02%		7.97%		7.79%		7.54%
Return on average tangible common equity (annualized)		(1)		9.99%		10.05%		10.08%		11.29%		10.58%		10.04%		10.67%

 

 

 

 

 

 

 

 

Contact:	Thomas S. Elley
	205-582-1200

 

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v3.24.3

Document and Entity Information	Oct. 24, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 24, 2024
Entity Registrant Name	First US Bancshares, Inc.
Entity Central Index Key	0000717806
Entity Incorporation, State or Country Code	DE
Entity File Number	000-14549
Entity Tax Identification Number	63-0843362
Entity Address, Address Line One	3291 U.S. Highway 280
Entity Address, City or Town	Birmingham
Entity Address, State or Province	AL
Entity Address, Postal Zip Code	35243
City Area Code	205
Local Phone Number	582-1200
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	FUSB
Security Exchange Name	NASDAQ
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false

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