BIRMINGHAM, Ala., April 24,
2024 /PRNewswire/ -- First 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
|
$2.1 million
|
$0.34
|
0.80 %
|
9.25 %
|
10.08 %
|
87.2 %
|
First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"),
the parent company of First US Bank (the "Bank"), today reported
net income of $2.1 million, or
$0.34 per diluted share, for the
quarter ended March 31, 2024 ("1Q2024"), compared to
$2.3 million, or $0.36 per diluted share, for the quarter ended
December 31, 2023 ("4Q2023") and
$2.1 million, or $0.33 per diluted share, for the quarter ended
March 31, 2023 ("1Q2023").
The table below summarizes selected financial data for each of
the periods presented.
|
|
Quarter
Ended
|
|
|
|
2024
|
|
|
2023
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
Results of
Operations:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Interest
income
|
|
$
|
14,277
|
|
|
$
|
13,945
|
|
|
$
|
13,902
|
|
|
$
|
12,999
|
|
|
$
|
11,960
|
|
Interest
expense
|
|
|
5,237
|
|
|
|
4,835
|
|
|
|
4,419
|
|
|
|
3,676
|
|
|
|
2,526
|
|
Net interest
income
|
|
|
9,040
|
|
|
|
9,110
|
|
|
|
9,483
|
|
|
|
9,323
|
|
|
|
9,434
|
|
Provision for (recovery
of) credit losses
|
|
|
-
|
|
|
|
(434)
|
|
|
|
184
|
|
|
|
300
|
|
|
|
269
|
|
Net interest income
after provision for (recovery of) credit losses
|
|
|
9,040
|
|
|
|
9,544
|
|
|
|
9,299
|
|
|
|
9,023
|
|
|
|
9,165
|
|
Non-interest
income
|
|
|
865
|
|
|
|
916
|
|
|
|
837
|
|
|
|
799
|
|
|
|
829
|
|
Non-interest
expense
|
|
|
7,147
|
|
|
|
7,401
|
|
|
|
7,319
|
|
|
|
7,151
|
|
|
|
7,270
|
|
Income before income
taxes
|
|
|
2,758
|
|
|
|
3,059
|
|
|
|
2,817
|
|
|
|
2,671
|
|
|
|
2,724
|
|
Provision for income
taxes
|
|
|
651
|
|
|
|
782
|
|
|
|
704
|
|
|
|
648
|
|
|
|
652
|
|
Net income
|
|
$
|
2,107
|
|
|
$
|
2,277
|
|
|
$
|
2,113
|
|
|
$
|
2,023
|
|
|
$
|
2,072
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.35
|
|
Diluted net income per
share
|
|
$
|
0.34
|
|
|
$
|
0.36
|
|
|
$
|
0.33
|
|
|
$
|
0.31
|
|
|
$
|
0.33
|
|
Dividends
declared
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
Key Measures (Period
End):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,070,541
|
|
|
$
|
1,072,940
|
|
|
$
|
1,065,239
|
|
|
$
|
1,068,126
|
|
|
$
|
1,026,658
|
|
Tangible assets
(1)
|
|
|
1,062,972
|
|
|
|
1,065,334
|
|
|
|
1,057,597
|
|
|
|
1,060,435
|
|
|
|
1,018,912
|
|
Total loans
|
|
|
822,941
|
|
|
|
821,791
|
|
|
|
815,300
|
|
|
|
814,494
|
|
|
|
775,889
|
|
Allowance for credit
losses on loans and leases
|
|
|
10,436
|
|
|
|
10,507
|
|
|
|
11,380
|
|
|
|
11,536
|
|
|
|
11,599
|
|
Investment securities,
net
|
|
|
126,363
|
|
|
|
136,669
|
|
|
|
127,823
|
|
|
|
124,404
|
|
|
|
128,689
|
|
Total
deposits
|
|
|
943,268
|
|
|
|
950,191
|
|
|
|
927,038
|
|
|
|
932,628
|
|
|
|
897,885
|
|
Short-term
borrowings
|
|
|
15,000
|
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
30,000
|
|
|
|
25,000
|
|
Long-term
borrowings
|
|
|
10,817
|
|
|
|
10,799
|
|
|
|
10,781
|
|
|
|
10,763
|
|
|
|
10,744
|
|
Total shareholders'
equity
|
|
|
92,326
|
|
|
|
90,593
|
|
|
|
87,408
|
|
|
|
85,725
|
|
|
|
84,757
|
|
Tangible common equity
(1)
|
|
|
84,757
|
|
|
|
82,987
|
|
|
|
79,766
|
|
|
|
78,034
|
|
|
|
77,011
|
|
Book value per common
share
|
|
|
15.95
|
|
|
|
15.80
|
|
|
|
14.88
|
|
|
|
14.59
|
|
|
|
14.45
|
|
Tangible book value per
common share (1)
|
|
|
14.65
|
|
|
|
14.47
|
|
|
|
13.58
|
|
|
|
13.28
|
|
|
|
13.13
|
|
Key
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
0.80
|
%
|
|
|
0.86
|
%
|
|
|
0.80
|
%
|
|
|
0.79
|
%
|
|
|
0.85
|
%
|
Return on average
common equity (annualized)
|
|
|
9.25
|
%
|
|
|
10.31
|
%
|
|
|
9.65
|
%
|
|
|
9.48
|
%
|
|
|
10.02
|
%
|
Return on average
tangible common equity (annualized) (1)
|
|
|
10.08
|
%
|
|
|
11.29
|
%
|
|
|
10.58
|
%
|
|
|
10.41
|
%
|
|
|
11.05
|
%
|
Net interest
margin
|
|
|
3.65
|
%
|
|
|
3.67
|
%
|
|
|
3.79
|
%
|
|
|
3.88
|
%
|
|
|
4.13
|
%
|
Efficiency ratio
(2)
|
|
|
72.2
|
%
|
|
|
73.8
|
%
|
|
|
70.9
|
%
|
|
|
70.6
|
%
|
|
|
70.8
|
%
|
Total loans to
deposits
|
|
|
87.2
|
%
|
|
|
86.5
|
%
|
|
|
87.9
|
%
|
|
|
87.3
|
%
|
|
|
86.4
|
%
|
Total loans to
assets
|
|
|
76.9
|
%
|
|
|
76.6
|
%
|
|
|
76.5
|
%
|
|
|
76.3
|
%
|
|
|
75.6
|
%
|
Common equity to total
assets
|
|
|
8.62
|
%
|
|
|
8.44
|
%
|
|
|
8.21
|
%
|
|
|
8.03
|
%
|
|
|
8.26
|
%
|
Tangible common equity
to tangible assets (1)
|
|
|
7.97
|
%
|
|
|
7.79
|
%
|
|
|
7.54
|
%
|
|
|
7.36
|
%
|
|
|
7.56
|
%
|
Tier 1 leverage ratio
(3)
|
|
|
9.37
|
%
|
|
|
9.36
|
%
|
|
|
9.09
|
%
|
|
|
9.19
|
%
|
|
|
9.36
|
%
|
Allowance for credit
losses on loans and leases as % of total loans
|
|
|
1.27
|
%
|
|
|
1.28
|
%
|
|
|
1.40
|
%
|
|
|
1.42
|
%
|
|
|
1.49
|
%
|
Nonperforming assets as
% of total assets
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.29
|
%
|
|
|
0.15
|
%
|
|
|
0.18
|
%
|
Net charge-offs as a
percentage of average loans
|
|
|
0.09
|
%
|
|
|
0.19
|
%
|
|
|
0.10
|
%
|
|
|
0.14
|
%
|
|
|
0.11
|
%
|
(1) Refer to
Non-GAAP reconciliation of tangible balances and measures beginning
on page 8.
|
(2) Efficiency
ratio = non-interest expense / (net interest income + non-interest
income)
|
(3) First US Bank
Tier 1 leverage ratio
|
|
CEO Commentary
"We are off to a solid start for 2024," stated James F.
House, President and CEO of the Company. "While the economic and
interest rate environments have certainly been volatile, our
balance sheet remains well-positioned to weather the uncertainty.
During the early months of 2024, we are taking advantage of market
opportunities to improve asset yields, while simultaneously working
to control expenses, and strengthen our balance sheet positioning.
These efforts impacted the Company's first quarter results
positively and we expect continued benefit as we move through
2024," continued Mr. House.
Financial Results
Loan Growth – 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
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
(Dollars in
Thousands)
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
Construction, land
development and other land loans
|
|
$102,282
|
|
$88,140
|
|
$90,051
|
|
$91,231
|
|
$69,398
|
Secured by 1-4 family
residential properties
|
|
74,361
|
|
76,200
|
|
83,876
|
|
85,101
|
|
86,622
|
Secured by
multi-family residential properties
|
|
62,145
|
|
62,397
|
|
56,506
|
|
54,719
|
|
63,368
|
Secured by non-farm,
non-residential properties
|
|
212,465
|
|
213,586
|
|
199,116
|
|
204,270
|
|
198,266
|
Commercial and
industrial loans
|
|
57,112
|
|
60,515
|
|
59,369
|
|
60,568
|
|
65,708
|
Consumer
loans:
|
|
|
|
|
|
|
|
|
|
|
Direct
|
|
5,590
|
|
5,938
|
|
6,544
|
|
7,593
|
|
8,435
|
Branch
retail
|
|
7,794
|
|
8,670
|
|
9,648
|
|
10,830
|
|
12,222
|
Indirect
|
|
301,192
|
|
306,345
|
|
310,190
|
|
300,182
|
|
271,870
|
Total loans and leases
held for investment
|
|
$822,941
|
|
$821,791
|
|
$815,300
|
|
$814,494
|
|
$775,889
|
Allowance for credit
losses on loans and leases
|
|
10,436
|
|
10,507
|
|
11,380
|
|
11,536
|
|
11,599
|
Net loans and leases
held for investment
|
|
$812,505
|
|
$811,284
|
|
$803,920
|
|
$802,958
|
|
$764,290
|
Total loan volume increased by $1.2
million, or 0.1%, in 1Q2024, driven primarily by growth in
multi-family construction lending, which was partially offset by
reductions in other loan categories. Average total loan balances
increased by $18.6 million, or 2.3%,
during 1Q2024, compared to 4Q2023, and by $51.1 million, or 6.6%, comparing 1Q2024 to
1Q2023.
Net Interest Income and Margin – Net interest income
decreased to $9.0 million in 1Q2024,
compared to $9.1 million in 4Q2023,
and $9.4 million in 1Q2023. The
decrease compared to 4Q2023 resulted from one less earning day
during the quarter, combined with a decrease in net interest margin
of 2 basis points. Compared to 1Q2023, the reduction resulted from
net interest margin compression that totaled 48 basis points as
interest-bearing liabilities repriced at a faster pace than
interest-bearing assets. While margin compression has
persisted since 1Q2023, it slowed substantially in 1Q2024 due to
continued repricing of earning assets at more favorable rates,
combined with growth in average earning assets and efforts to hold
deposit expense at reasonable levels. Net interest margin was 3.65%
in 1Q2024, compared to 3.67% in 4Q2023, and 4.13% in 1Q2023.
Deposit Growth – Total deposits decreased by $6.9 million, or 0.7%, during 1Q2024, due
primarily to reductions in non-interest bearing and
interest-bearing direct deposit accounts, partially offset by
increases in interest-bearing time deposits. The shift to
interest-bearing time deposits is consistent with deposit holders
seeking to maximize interest earnings, a condition that has
persisted in the current interest rate environment. The increase in
interest-bearing time deposits was partially offset by a reduction
in wholesale brokered time deposits of $5.5
million during 1Q2024. Core deposits, which exclude
time deposits of $250 thousand or
more and all wholesale brokered deposits, totaled $807.3 million, or 85.6% of total deposits as of
March 31, 2024, compared to
$819.5 million, or 86.2% of total
deposits, as of December 31,
2023.
Deployment of Funds – As of March
31, 2024, the Company held cash and federal funds sold
balances totaling $65.8 million, or
6.1% 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 $126.4 million as
of March 31, 2024, compared to $136.7
million as of December 31, 2023. The decrease in
investment securities during 1Q2024 resulted from the maturity of
U.S. treasury bonds that occurred late in the quarter. Subsequent
to March 31, 2024, these funds were
reinvested in higher yielding securities. As of March 31,
2024, the expected average life of securities in the investment
portfolio was 4.2 years, compared to 3.9 years as of
December 31, 2023. In the current higher interest rate
environment, management continues to seek opportunities to
reconfigure the investment portfolio with higher yielding assets as
cash flows become available.
Provision for Credit Losses – On a net basis, no
provision for credit losses was recorded by the Company during
1Q2024, compared to a negative provision of $0.4 million in 4Q2023 and a provision of
$0.3 million in 1Q2023. The Company's
determination that no net credit loss provisioning was required in
1Q2024 was due to modest overall loan growth during the quarter,
combined with a decrease in both unfunded lending commitments and
indirect loan fundings. The indirect portfolio generally requires
higher allowances for credit losses than most other loan categories
in the Company's portfolio. As of March 31,
2024, the Company's allowance for credit losses on loans and
leases as a percentage of total loans was 1.27%, compared to 1.28%
as of December 31, 2023.
Asset Quality – Nonperforming assets, including loans in
non-accrual status and OREO, totaled $3.0
million as of both March 31,
2024 and December 31,
2023. As a percentage of total assets, nonperforming assets
totaled 0.28% as of both March 31,
2024 and December 31, 2023.
Annualized net charge-offs as a percentage of average loans during
1Q2024 totaled 0.09%, compared to 0.19% during 4Q2023 and 0.11%
during 1Q2023.
Non-interest Income – Non-interest income remained
relatively consistent, totaling $0.9
million in both 1Q2024 and 4Q2023, compared to $0.8 million in 1Q2023.
Non-interest Expense – Non-interest expense totaled
$7.1 million in 1Q2024, compared to
$7.4 million in 4Q2023, and
$7.3 million in 1Q2023. The
decrease compared to 4Q2023 resulted primarily from check
fraud losses recorded by the Company in 4Q2023, the
majority of which were recovered in 1Q2024. The impact of recovered
check fraud losses in 1Q2024 was partially offset by
increases in salaries and benefits due primarily to payroll tax
expenses that tend to be higher during the early part of the year.
The decrease comparing 1Q2024 to 1Q2023 resulted from the recovery
of check fraud losses, combined with an overall
reduction in salaries and benefits resulting from reductions in
staff levels attained through strategic initiatives implemented by
the Company in prior years.
Shareholders' Equity – As of March
31, 2024, shareholders' equity totaled $92.3 million, or 8.62% 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 quarter resulted
primarily from earnings, net of dividends paid. In addition, the
rising interest rate environment, particularly during the latter
part of 1Q2024, led to a decrease in valuations of investment
securities and drove an overall increase in accumulated other
comprehensive loss of $0.2 million
during the quarter. Securities valuation decreases were, in part,
mitigated by the maturity of lower interest rate securities that
totaled $13.0 million during the
quarter. The Company's ratio of tangible common equity to tangible
assets was 7.97% as of March 31,
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 1Q2024, consistent with all four quarters of 2023.
Regulatory Capital – During 1Q2024, the Bank continued to
maintain capital ratios at higher levels than required to be
considered a "well-capitalized" institution under applicable
banking regulations. As of March 31,
2024, the Bank's common equity Tier 1 capital and Tier 1
risk-based capital ratios were each 11.11%, its total capital ratio
was 12.32%, and its Tier 1 leverage ratio was 9.37%.
Liquidity – As of March 31, 2024, 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
with other banking institutions, Federal Home Loan Bank (FHLB)
advances, the discount window of the Federal Reserve Bank (FRB),
and brokered deposits.
Interest Rate Risk Management – During
1Q2024, the Company purchased $50
million notional in interest rate floors to assist in
mitigating a portion of the Company's risk in down rate scenarios.
Anticipated Banking Center Growth – As part of the
Company's overall growth strategy, progress was made during 1Q2024
toward the anticipated opening of a new banking center in the
Bearden area of Knoxville,
Tennessee that will replace the Bank's existing Knoxville-Bearden location. It is anticipated
that the new location, which is expected to open during 2Q2024,
will provide more favorable exposure to potential customers, while
at the same time improving access to most of the Bank's existing
customers in the area. In addition, during 1Q2024, the Company
purchased a banking center office in Daphne, Alabama from another financial
institution. This location is expected to serve as the Bank's
initial deposit gathering facility in the Daphne/Mobile
area. It is anticipated that the location will open to the
public in the fourth quarter of 2024. As of March 31, 2024, both the anticipated Knoxville and Daphne banking centers had received all
necessary regulatory approvals.
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.
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
NET INTEREST MARGIN
THREE MONTHS ENDED
March 31, 2024 AND 2023
(Dollars in
Thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2024
|
|
|
March 31,
2023
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
821,984
|
|
|
$
|
12,853
|
|
|
|
6.29
|
%
|
|
$
|
770,871
|
|
|
$
|
10,982
|
|
|
|
5.78
|
%
|
Taxable investment
securities
|
|
|
133,689
|
|
|
|
862
|
|
|
|
2.59
|
%
|
|
|
129,840
|
|
|
|
680
|
|
|
|
2.12
|
%
|
Tax-exempt investment
securities
|
|
|
1,030
|
|
|
|
3
|
|
|
|
1.17
|
%
|
|
|
1,059
|
|
|
|
3
|
|
|
|
1.15
|
%
|
Federal Home Loan Bank
stock
|
|
|
914
|
|
|
|
18
|
|
|
|
7.92
|
%
|
|
|
1,634
|
|
|
|
28
|
|
|
|
6.95
|
%
|
Federal funds
sold
|
|
|
6,607
|
|
|
|
89
|
|
|
|
5.42
|
%
|
|
|
2,591
|
|
|
|
29
|
|
|
|
4.54
|
%
|
Interest-bearing
deposits in banks
|
|
|
33,004
|
|
|
|
452
|
|
|
|
5.51
|
%
|
|
|
20,526
|
|
|
|
238
|
|
|
|
4.70
|
%
|
Total interest-earning
assets
|
|
|
997,228
|
|
|
|
14,277
|
|
|
|
5.76
|
%
|
|
|
926,521
|
|
|
|
11,960
|
|
|
|
5.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
67,790
|
|
|
|
|
|
|
|
|
|
62,818
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,065,018
|
|
|
|
|
|
|
|
|
$
|
989,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
201,261
|
|
|
|
252
|
|
|
|
0.50
|
%
|
|
$
|
227,382
|
|
|
|
195
|
|
|
|
0.35
|
%
|
Savings
deposits
|
|
|
260,420
|
|
|
|
1,884
|
|
|
|
2.91
|
%
|
|
|
193,878
|
|
|
|
553
|
|
|
|
1.16
|
%
|
Time
deposits
|
|
|
336,822
|
|
|
|
2,963
|
|
|
|
3.54
|
%
|
|
|
270,780
|
|
|
|
1,389
|
|
|
|
2.08
|
%
|
Total interest-bearing
deposits
|
|
|
798,503
|
|
|
|
5,099
|
|
|
|
2.57
|
%
|
|
|
692,040
|
|
|
|
2,137
|
|
|
|
1.25
|
%
|
Noninterest-bearing
demand deposits
|
|
|
149,613
|
|
|
|
—
|
|
|
|
—
|
|
|
|
166,548
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
948,116
|
|
|
|
5,099
|
|
|
|
2.16
|
%
|
|
|
858,588
|
|
|
|
2,137
|
|
|
|
1.01
|
%
|
Borrowings
|
|
|
14,545
|
|
|
|
138
|
|
|
|
3.82
|
%
|
|
|
37,221
|
|
|
|
389
|
|
|
|
4.24
|
%
|
Total funding
costs
|
|
|
962,661
|
|
|
|
5,237
|
|
|
|
2.19
|
%
|
|
|
895,809
|
|
|
|
2,526
|
|
|
|
1.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
10,712
|
|
|
|
|
|
|
|
|
|
9,693
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
91,645
|
|
|
|
|
|
|
|
|
|
83,837
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,065,018
|
|
|
|
|
|
|
|
|
$
|
989,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
9,040
|
|
|
|
|
|
|
|
|
$
|
9,434
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
3.65
|
%
|
|
|
|
|
|
|
|
|
4.13
|
%
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
Cash and due from
banks
|
|
$
|
18,557
|
|
|
$
|
12,987
|
|
Interest-bearing
deposits in banks
|
|
|
41,685
|
|
|
|
37,292
|
|
Total cash and cash
equivalents
|
|
|
60,242
|
|
|
|
50,279
|
|
Federal funds
sold
|
|
|
5,532
|
|
|
|
9,475
|
|
Investment securities
available-for-sale, at fair value
|
|
|
125,380
|
|
|
|
135,565
|
|
Investment securities
held-to-maturity, at amortized cost
|
|
|
983
|
|
|
|
1,104
|
|
Federal Home Loan Bank
stock, at cost
|
|
|
1,494
|
|
|
|
1,201
|
|
Loans and leases held
for investment
|
|
|
822,941
|
|
|
|
821,791
|
|
Less allowance for
credit losses on loans and leases
|
|
|
10,436
|
|
|
|
10,507
|
|
Net loans and leases
held for investment
|
|
|
812,505
|
|
|
|
811,284
|
|
Premises and equipment,
net of accumulated depreciation
|
|
|
25,041
|
|
|
|
24,398
|
|
Cash surrender value of
bank-owned life insurance
|
|
|
16,788
|
|
|
|
16,702
|
|
Accrued interest
receivable
|
|
|
4,148
|
|
|
|
3,976
|
|
Goodwill and core
deposit intangible, net
|
|
|
7,569
|
|
|
|
7,606
|
|
Other real estate
owned
|
|
|
572
|
|
|
|
602
|
|
Other assets
|
|
|
10,287
|
|
|
|
10,748
|
|
Total
assets
|
|
$
|
1,070,541
|
|
|
$
|
1,072,940
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest-bearing
|
|
$
|
142,944
|
|
|
$
|
153,591
|
|
Interest-bearing
|
|
|
800,324
|
|
|
|
796,600
|
|
Total
deposits
|
|
|
943,268
|
|
|
|
950,191
|
|
Accrued interest
expense
|
|
|
1,714
|
|
|
|
2,030
|
|
Other
liabilities
|
|
|
7,416
|
|
|
|
9,327
|
|
Short-term
borrowings
|
|
|
15,000
|
|
|
|
10,000
|
|
Long-term
borrowings
|
|
|
10,817
|
|
|
|
10,799
|
|
Total
liabilities
|
|
|
978,215
|
|
|
|
982,347
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common stock, par value
$0.01 per share, 10,000,000 shares authorized; 7,794,911 and
7,738,201 shares issued, respectively; 5,787,441
and 5,735,075 shares outstanding,
respectively
|
|
|
75
|
|
|
|
75
|
|
Additional paid-in
capital
|
|
|
15,122
|
|
|
|
14,972
|
|
Accumulated other
comprehensive loss, net of tax
|
|
|
(6,621)
|
|
|
|
(6,431)
|
|
Retained
earnings
|
|
|
111,777
|
|
|
|
109,959
|
|
Less treasury stock:
2,007,470 and 2,003,126 shares at cost, respectively
|
|
|
(28,027)
|
|
|
|
(27,982)
|
|
Total shareholders'
equity
|
|
|
92,326
|
|
|
|
90,593
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,070,541
|
|
|
$
|
1,072,940
|
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Interest
income:
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
12,853
|
|
|
$
|
10,982
|
|
Interest on investment
securities
|
|
|
865
|
|
|
|
683
|
|
Interest on deposits
in banks
|
|
|
452
|
|
|
|
238
|
|
Other
|
|
|
107
|
|
|
|
57
|
|
Total interest
income
|
|
|
14,277
|
|
|
|
11,960
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
5,099
|
|
|
|
2,137
|
|
Interest on
borrowings
|
|
|
138
|
|
|
|
389
|
|
Total interest
expense
|
|
|
5,237
|
|
|
|
2,526
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
9,040
|
|
|
|
9,434
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
-
|
|
|
|
269
|
|
|
|
|
|
|
|
|
Net interest income
after provision for credit losses
|
|
|
9,040
|
|
|
|
9,165
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
Service and other
charges on deposit accounts
|
|
|
299
|
|
|
|
285
|
|
Lease
income
|
|
|
257
|
|
|
|
231
|
|
Other income,
net
|
|
|
309
|
|
|
|
313
|
|
Total non-interest
income
|
|
|
865
|
|
|
|
829
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
4,088
|
|
|
|
4,222
|
|
Net occupancy and
equipment
|
|
|
894
|
|
|
|
835
|
|
Computer
services
|
|
|
443
|
|
|
|
421
|
|
Insurance expense and
assessments
|
|
|
391
|
|
|
|
327
|
|
Fees for professional
services
|
|
|
341
|
|
|
|
245
|
|
Other
expense
|
|
|
990
|
|
|
|
1,220
|
|
Total non-interest
expense
|
|
|
7,147
|
|
|
|
7,270
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
2,758
|
|
|
|
2,724
|
|
Provision for income
taxes
|
|
|
651
|
|
|
|
652
|
|
Net income
|
|
$
|
2,107
|
|
|
$
|
2,072
|
|
Basic net income per
share
|
|
$
|
0.36
|
|
|
$
|
0.35
|
|
Diluted net income per
share
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Dividends per
share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
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 March 31,
2024 and December 31,
2023.
|
March 31,
2024
|
|
|
December 31,
2023
|
|
|
(Dollars in
Thousands)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Liquidity from cash and
federal funds sold:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
60,242
|
|
|
$
|
50,279
|
|
Federal funds
sold
|
|
5,532
|
|
|
|
9,475
|
|
Liquidity from cash
and federal funds sold
|
|
65,774
|
|
|
|
59,754
|
|
Liquidity from
pledgable investment securities:
|
|
|
|
|
|
Investment securities
available-for sale, at fair value
|
|
125,380
|
|
|
|
135,565
|
|
Investment securities
held-to-maturity, at amortized cost
|
|
983
|
|
|
|
1,104
|
|
Less: securities
pledged
|
|
(47,233)
|
|
|
|
(41,375)
|
|
Less: estimated
collateral value discounts
|
|
(11,080)
|
|
|
|
(11,129)
|
|
Liquidity from
pledgable investment securities
|
|
68,050
|
|
|
|
84,165
|
|
Liquidity from unused
lendable collateral (loans) at FHLB
|
|
15,878
|
|
|
|
21,696
|
|
Liquidity from unused
lendable collateral (loans and securities) at FRB
|
|
158,782
|
|
|
|
161,729
|
|
Unsecured lines of
credit with banks
|
|
48,000
|
|
|
|
48,000
|
|
Total readily
available liquidity
|
$
|
356,484
|
|
|
$
|
375,344
|
|
The table above calculates readily available liquidity by
combining cash and cash equivalents, federal funds sold 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
March 31, 2024 and December 31,
2023, the Company's total remaining credit availability with
the FHLB was $276.8 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. For example, the Company has 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 March 31, 2024, the Company had approximately 29
thousand deposit accounts with an average balance of approximately
$29.6 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 $192.5 million, or 20.4% of total deposits, as of
March 31, 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.
|
|
|
|
Quarter
Ended
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
|
|
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
|
(Unaudited
Reconciliation)
|
TANGIBLE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$1,070,541
|
|
$1,072,940
|
|
$1,065,239
|
|
$1,068,126
|
|
$1,026,658
|
Less:
Goodwill
|
|
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
Less: Core deposit
intangible
|
|
|
|
134
|
|
171
|
|
207
|
|
256
|
|
311
|
Tangible
assets
|
|
(a)
|
|
$1,062,972
|
|
$1,065,334
|
|
$1,057,597
|
|
$1,060,435
|
|
$1,018,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
$92,326
|
|
$90,593
|
|
$87,408
|
|
$85,725
|
|
$84,757
|
Less:
Goodwill
|
|
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
Less: Core deposit
intangible
|
|
|
|
134
|
|
171
|
|
207
|
|
256
|
|
311
|
Tangible common
equity
|
|
(b)
|
|
$84,757
|
|
$82,987
|
|
$79,766
|
|
$78,034
|
|
$77,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
|
$91,645
|
|
$87,615
|
|
$86,897
|
|
$85,660
|
|
$83,837
|
Less: Average
goodwill
|
|
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
Less: Average core
deposit intangible
|
|
|
|
151
|
|
188
|
|
229
|
|
282
|
|
337
|
Average tangible
shareholders' equity
|
|
(c)
|
|
$84,059
|
|
$79,992
|
|
$79,233
|
|
$77,943
|
|
$76,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
(d)
|
|
$2,107
|
|
$2,277
|
|
$2,113
|
|
$2,023
|
|
$2,072
|
Common shares
outstanding (in thousands)
|
|
(e)
|
|
5,787
|
|
5,735
|
|
5,875
|
|
5,875
|
|
5,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
(b)/(e)
|
|
$14.65
|
|
$14.47
|
|
$13.58
|
|
$13.28
|
|
$13.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
|
(b)/(a)
|
|
7.97 %
|
|
7.79 %
|
|
7.54 %
|
|
7.36 %
|
|
7.56 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
(1)
|
|
10.08 %
|
|
11.29 %
|
|
10.58 %
|
|
10.41 %
|
|
11.05 %
|
|
(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-first-quarter-2024-earnings-302126307.html
SOURCE First US Bancshares, Inc.