FUSB

BIRMINGHAM, Ala., July 29, 2026 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.8 million, or $0.31 per diluted share, for the quarter ended June 30, 2026 ("2Q2026"), compared to $1.9 million, or $0.33 per diluted share, for the quarter ended March 31, 2026 ("1Q2026") and $0.2 million, or $0.03 per diluted share, for the quarter ended June 30, 2025 ("2Q2025"). For the six months ended June 30, 2026, net income totaled $3.7 million, or $0.64 per diluted share, compared to $1.9 million, or $0.32 per diluted share, for the six months ended June 30, 2025. The increase in earnings in both 2Q2026 and the six months ended June 30, 2026, compared to the corresponding periods of 2025, resulted primarily from a decrease in the provision for credit losses on loans and leases. The table below summarizes selected financial data for each of the periods presented. CEO Commentary "We are pleased to report significantly improved year-over-year earnings, along with solid loan growth and quarter-over-quarter expansion of net interest margin," stated James F. House, President and CEO of the Company. "Diluted earnings per share doubled comparing the first six months of 2026 to the same period of 2025. While the geopolitical and economic environments remain uncertain, we continued to see resilience in the markets that we serve during the second quarter. We experienced robust loan growth during the quarter, particularly in the Bank's construction and indirect consumer lending portfolios. In addition, we saw substantial margin improvement from 1Q2026 as we were able to manage deposit costs downward in a meaningful way," 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. Total loans increased by $16.9 million, or 2.0%, in 2Q2026 compared to 1Q2026. Growth in the construction and consumer indirect categories was partially offset by decreases in other categories, primarily in non-residential commercial real estate, multi-family residential and 1-4 family residential. The decreases in the commercial real estate and multi-family categories resulted primarily from the payoff of real estate projects that had been anticipated to occur in the normal course of the project life cycle. The growth in the construction category was consistent with economic growth in the Company's service territories, while the growth in the indirect consumer category was consistent with typical seasonal trends. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score at the time of funding for the portfolio was 785. Growth in the total loan portfolio during 2Q2026 offset reductions in 1Q2026. For the six months ended June 30, 2026, total loans increased by $7.6 million, or 0.9%. Average total loans over the six-month period ended June 30, 2026 were $11.3 million, or 1.3%, higher than average total loans over the corresponding period of 2025. Consistent with reductions in the Federal funds rate in the latter part of 2025, the average yield on loans decreased in the first six months of 2026 relative to the corresponding period of 2025. The average yield on total loans was 5.90% in 2Q2026, compared to 5.95% during 1Q2026 and 6.07% in 2Q2025. For the six months ended June 30, 2026, the average yield on loans totaled 5.92%, compared to 6.05% during the six months ended June 30, 2025. Deposits – Total deposits decreased by $40.9 million, or 3.9%, in 2Q2026. Included in the decrease were $20.1 million in wholesale brokered time deposits that matured and were not replaced. Of the remaining decrease, $15.1 million represented interest-bearing demand deposit accounts and $6.4 million interest-bearing time deposits. These decreases were partially offset by an increase in noninterest-bearing demand deposits of $0.7 million during the quarter. The decrease in both wholesale deposits, as well as other interest-bearing deposits, assisted management's efforts to reduce overall deposit costs, while maintaining an appropriate level of core funding. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $835.2 million, or 83.7% of total deposits, as of June 30, 2026, compared to $853.8 million or 82.2% of total deposits, as of March 31, 2026, and $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on deposits totaled 1.98% during 2Q2026, compared to 2.18% during 1Q2026 and 2.08% during 2Q2025. For the six months ended June 30, 2026, the average rate on deposits totaled 2.08%, compared to 2.07% during the six months ended June 30, 2025. Cash and Investment Securities – As of June 30, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $63.8 million, or 5.6% of total assets, compared to $78.4 million, or 6.8% of total assets, as of December 31, 2025. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $166.0 million as of June 30, 2026, compared to $168.5 million as of December 31, 2025. During the six months ended June 30, 2026, the Company purchased $25.4 million in investment securities at market rates in existence at the time of purchase. In addition, the Company sold investment securities with a principal balance totaling $7.1 million and recorded a gain on sale totaling $0.5 million during 2Q2026. These purchases and sales, combined with the maturity and paydown of investment securities at lower rates, have led to continued improvement in yield on the portfolio. The average yield on investment securities, including both available-for-sale and held-to-maturity securities, totaled 3.95% during 2Q2026, compared to 3.89% during 1Q2026, and 3.46% during 2Q2025. For the six months ended June 30, 2026, the average yield on investment securities totaled 3.92%, compared to 3.45% during the six months ended June 30, 2025. As of June 30, 2026, the expected average life of securities in the investment portfolio was 3.6 years compared to 3.7 years as of December 31, 2025. Net Interest Income and Margin – Net interest income in 2Q2026 increased by $0.3 million, or 3.1%, compared to 1Q2026 and increased by $24 thousand, or 0.3%, compared to 2Q2025. Net interest margin was 3.56% for 2Q2026, compared to 3.37% for 1Q2026 and 3.59% for 2Q2025. For the six months ended June 30, 2026, net interest margin totaled 3.46%, compared to 3.56% for the six months ended June 30, 2025. The decrease in net interest margin comparing the first half of 2026 to the corresponding period of 2025 resulted primarily from reductions in loan yields that occurred following the reduction of the Federal funds rate during the latter part of 2025. Asset Quality – Nonperforming assets, including loans in non-accrual status, other real estate owned, and repossessed assets, totaled $1.9 million as of June 30, 2026, compared to $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets totaled 0.17% as of June 30, 2026, compared to 0.14% as of December 31, 2025. Net charge-offs as a percentage of average loans totaled 0.30% in 2Q2026, compared to 0.23% in 1Q2026 and 0.79% during 2Q2025. For the six months ended June 30, 2026, net charge-offs as a percentage of average loans totaled 0.27%, compared to 0.47% during the six months ended June 30, 2025. The decrease in net charge-offs comparing the first half of 2026 to the corresponding period of 2025 was due to the partial charge-off in 2Q2025 of one individually evaluated commercial loan totaling $1.2 million that was not repeated in 2026. The increase in net charge-offs comparing 2Q2026 to 1Q2026 was due to an uptick in charge-offs associated with the indirect portfolio. Provision for Credit Losses – During 2Q2026, the Company recorded a provision for credit losses totaling $0.9 million, compared to $0.3 million in 1Q2026 and $2.7 million in 2Q2025. For the six months ended June 30, 2026, the provision for credit losses totaled $1.2 million, compared to $3.2 million for the six months ended June 30, 2025. The increase in provision in 2Q2026 compared to 1Q2026 was due primarily to loan growth in 2Q2026, as well as changes in the economic forecasting associated with the Company's credit forecasting model. The decreased provision comparing the first half of 2026 to the corresponding periods of 2025 resulted primarily from provisioning for specifically identified commercial loans in 2Q2025. The credit issues associated with additional provisioning in 2Q2025 were resolved later in 2025, and accordingly, the same level of provisioning was not repeated during 2026. As of June 30, 2026, the Company's ACL on loans and leases as a percentage of total loans was 1.26%, compared to 1.25% as of December 31, 2025. While management believes that the ACL is adequate to absorb credit losses within the Company's loan portfolio, inherent uncertainty exists pertaining to the ultimate impact on the portfolio of both geopolitical and economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability. Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $3.2 million in 2Q2026, compared to $2.7 million in 1Q2026 and $2.9 million in 2Q2025. As a percentage of average assets, PPNR totaled 1.12% in 2Q2026, compared to 0.94% in 1Q2026 and 1.03% in 2Q2025. For the six months ended June 30, 2026, PPNR as a percentage of average assets was 1.03%, compared to 1.05% for the six months ended June 30, 2025. Refer to the non-GAAP Financial Measures section for a reconciliation of PPNR to net income. Non-interest Income – Non-interest income increased to $1.3 million in 2Q2026, compared to $0.8 million in both 1Q2026 and 2Q2025. The increase in non-interest income in 2Q2026 compared to both prior periods resulted from gains on sale of securities totaling $0.5 million. For the six months ended June 30, 2026, non-interest income totaled $2.2 million, compared to $1.7 million for the six months ended June 30, 2025, an increase of $0.5 million resulting from the gains on sale of securities taken in 2Q2026. Non-interest Expense – Non-interest expense totaled $7.6 million in 2Q2026, compared to $7.3 million in 1Q2026 and $7.4 million in 2Q2025. For the six months ended June 30, 2026, non-interest expense totaled $15.0 million, compared to $14.4 million for the six months ended June 30, 2025. The expense increases, comparing both 2Q2026 and the six-month period ended June 30, 2026 to prior periods, resulted primarily from inflationary increases in various expense categories, as well as an increase in net occupancy expenses associated with expansion of the Company's banking center footprint. Shareholders' Equity – As of June 30, 2026, shareholders' equity totaled $104.3 million, or 9.09% of total assets, compared to $105.6 million, or 9.15% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders' equity during the six months ended June 30, 2026, the increase was fully offset by share repurchases, combined with an increase in the Company's accumulated other comprehensive loss resulting primarily from the increasing interest rate environment and the sale of investment securities during the period. The Company's ratio of tangible common equity to tangible assets was 8.49% as of June 30, 2026, compared to 8.56% as of December 31, 2025. Cash Dividend – In 2Q2026, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 1Q2026 and all four quarters of 2025. Share Repurchases – During 2Q2026, the Company completed the repurchase of 91,000 shares of its common stock at a weighted average price of $15.83 per share, bringing total share repurchases for the six months ended June 30, 2026 to 237,500 shares at a weighted average price of $15.33 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded in 2025. As of June 30, 2026, 1,547,313 shares remained available for repurchase under the program. Regulatory Capital – During 2Q2026, 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 June 30, 2026, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.85%, its total capital ratio was 12.02%, and its Tier 1 leverage ratio was 9.16%. Liquidity – As of June 30, 2026, 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, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity. Banking Center Growth – During 2Q2026, the Company opened a new banking center office in Daphne, Alabama. The location will serve as the Bank's initial deposit gathering facility in the Daphne/Mobile area. In addition, during 2Q2026, the Company purchased an office in Orange Beach, Alabama, which is expected to serve as a banking center following the completion of renovations. The location is expected to open to the public in 2027. 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 loan losses may be greater than anticipated; our ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future financial obligations; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; 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; the effects of significant changes to the structure and operations of the federal government; digital banking trends may create deposit volatility; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; effects of changes in the policies of monetary authorities and other government action; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); risks of dependence on outside third parties for the processing and handling of our records and data; the costs of complying with extensive governmental regulation; the risk that internal controls and procedures might fail or be circumvented; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the potential impact of climate change related legislative and regulatory initiatives; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; the volatility of our stock price; our dependence on the soundness of other financial institutions; 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. 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, pre-tax pre-provision net revenue, 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 June 30, 2026 and December 31, 2025. 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-to-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 Company's readily available liquidity position decreased to $409.9 million as of June 30, 2026, compared to $467.2 million as of December 31, 2025 due to a combination of factors, including a reduction in cash and cash equivalents commensurate with efforts to improve balance sheet efficiency, combined with increased usage of secured short-term borrowings as of June 30, 2026. While readily available liquidity decreased comparing June 30, 2026 to December 31, 2025, the Company maintained ample access to liquidity relative to estimated uninsured deposits. Excluding wholesale brokered deposits, as of June 30, 2026, the Bank had approximately 27 thousand deposit accounts with an average balance of approximately $32.2 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 $176.7 million, or 17.6 % of total deposits, as of June 30, 2026. As of December 31, 2025, estimated uninsured deposits totaled $218.0 million, or 21.2% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP. 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. View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-second-quarter-2026-results-302838071.html

BIRMINGHAM, Ala., April 29, 2026 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.9 million, or $0.33 per diluted share, for the quarter ended March 31, 2026 ("1Q2026"), compared to $2.1 million, or $0.36 per diluted share, for the quarter ended December 31, 2025 ("4Q2025") and $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 ("1Q2025"). The table below summarizes selected financial data for each of the periods presented. CEO Commentary "We are pleased to report a solid start to the year," stated James F. House, President and CEO of the Company. "First quarter 2026 diluted earnings per share improved by 13.8% compared to the same quarter of 2025. Although we saw a modest decline in total loan volume during the quarter, some of which was seasonal, we experienced growth in our core deposit franchise," continued Mr. House. "While the year is certainly off to a volatile start from a geopolitical and economic standpoint, we continue to believe that the Company's balance sheet is well positioned to thrive in multiple scenarios." 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. Total loans decreased by $9.3 million, or 1.1%, in 1Q2026, as growth in the multi-family residential real estate and indirect categories was offset by decreases primarily in the construction, non-residential commercial real estate and C&I categories. The decrease in construction is consistent with the ebb and flow of projects in the Company's service territories. Construction loans are generally short-to-medium term loans that are expected to pay off or transfer to another loan category upon project completion. The decrease in non-residential commercial real estate was related to completed construction projects that moved into a permanent category, but were subsequently refinanced into the permanent market. The growth in the indirect category accelerated in the latter part of 1Q2026, consistent with typical seasonal trends. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during 1Q2026 was 797, while the weighted average credit score for the entire portfolio was 783. While total loans decreased during 1Q2026, average loan balances remained higher comparing 1Q2026 to 1Q2025, increasing by $26.7 million, or 3.2%. Deposits – Total deposits increased by $10.9 million, or 1.1%, during 1Q2026, due primarily to an increase in interest-bearing demand deposits of $28.4 million, partially offset by a $4.7 million decrease in noninterest-bearing deposits and a $12.8 million decrease in time deposits. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $853.8 million, or 82.2% of total deposits, as of March 31, 2026, compared to $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on deposits totaled 2.18% during 1Q2026, compared to 2.19% during 4Q2025 and 2.07% during 1Q2025. In the current environment, significant competitive pressure remains to acquire and maintain deposit balances. Cash and Investment Securities – As of March 31, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $85.4 million, or 7.3% of total assets, compared to $78.4 million, or 6.8% of total assets, as of December 31, 2025. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $181.5 million as of March 31, 2026, compared to $168.5 million as of December 31, 2025. During 1Q2026, the Company purchased $20.5 million of investment securities at market rates in existence at the time of purchase. These purchases, combined with the maturity and paydown of investment securities at lower rates, have led to continued improvement in yield on the portfolio. The yield on investment securities, including both available-for-sale and held to maturity securities, totaled 3.89% during 1Q2026, compared to 3.81% during 4Q2025 and 3.44% during 1Q2025. As of March 31, 2026, the expected average life of securities in the investment portfolio was 3.8 years compared to 3.7 years as of December 31, 2025. Net Interest Income and Margin – Net interest income in 1Q2026 decreased by $0.2 million, or 2.2%, compared to 4Q2025 and increased by $0.3 million, or 3.6%, compared to 1Q2025. Net interest margin was 3.37% for 1Q2026, compared to 3.46% for 4Q2025 and 3.53% for 1Q2025. The decrease in net interest margin compared to 4Q2025 and 1Q2025 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2025. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $1.8 million as of March 31, 2026, an increase from $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets increased to 0.16% as of March 31, 2026, compared to 0.14% as of December 31, 2025. Net charge-offs as a percentage of average loans totaled 0.23% in 1Q2026, compared to 0.08% during 4Q2025 and 0.13% during 1Q2025. The increase in net charge-offs comparing 1Q2026 to both 4Q2025 and 1Q2025 was due to a partial charge-off of one individually evaluated commercial loan of $48 thousand during 1Q2026, as well as an increase in charge-offs associated with the indirect portfolio. The amount charged off associated with the individually evaluated loan was fully reserved within the Company's allowance for credit losses ("ACL") on loans and leases as of December 31, 2025. Provision for Credit Losses – During 1Q2026, the Company recorded a provision for credit losses of $0.3 million, compared to $0.2 million in 4Q2025 and $0.5 million in 1Q2025. As of March 31, 2026, the Company's ACL on loans and leases as a percentage of total loans was 1.25%, consistent with December 31, 2025. While management believes that the ACL is adequate to absorb credit losses within the Company's loan portfolio, inherent uncertainty exists pertaining to the ultimate impact on the portfolio of both geopolitical and economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability. Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $2.7 million in 1Q2026, compared to $3.1 million in 4Q2025 and $2.9 million in 1Q2025. As a percentage of average assets, PPNR totaled 0.94% in 1Q2026, compared to 1.09% in 4Q2025 and 1.06% in 1Q2025. Refer to the non-GAAP reconciliation of PPNR to net income beginning on page 9. Non-interest Income – Non-interest income totaled $0.8 million in 1Q2026, compared to $1.0 million in 4Q2025 and $0.9 million in 1Q2025. The reduction in non-interest income compared to 4Q2025 resulted primarily from fees on customer-related interest rate swaps that were earned in 4Q2025 and not repeated in 1Q2026. Non-interest Expense – Non-interest expense totaled $7.3 million in both 1Q2026 and 4Q2025, compared to $6.9 million in 1Q2025. The expense increase comparing 1Q2026 to 1Q2025 resulted from increases in salaries and benefits, fees for professional services, and occupancy and equipment expenses. Shareholders' Equity – As of March 31, 2026, shareholders' equity totaled $104.6 million, or 9.0% of total assets, compared to $105.6 million, or 9.1% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders' equity during 1Q2026, the increase was fully offset by share repurchases during the quarter, combined with an increase in the Company's accumulated other comprehensive loss resulting from the increasing interest rate environment during the quarter. The Company's ratio of tangible common equity to tangible assets was 8.40% as of March 31, 2026 compared to 8.56% as of December 31, 2025. Cash Dividend – In 1Q2026, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid during all four quarters of 2025. Share Repurchases – During 1Q2026, the Company completed the repurchase of 146,500 shares of its common stock at a weighted average price of $15.03 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded during 4Q2025. As of March 31, 2026, 1,638,313 shares remained available for repurchase under the program. Regulatory Capital – During 1Q2026, 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, 2026, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.85%, its total capital ratio was 11.99%, and its Tier 1 leverage ratio was 8.85%. Liquidity – As of March 31, 2026, 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, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity. Banking Center Growth – During 1Q2026, the Company neared completion on 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. The location is expected to open to the public during the second quarter of 2026. 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 loan losses may be greater than anticipated; our ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future financial obligations; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; 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; the effects of significant changes to the structure and operations of the federal government; digital banking trends may create deposit volatility; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; effects of changes in the policies of monetary authorities and other government action; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); risks of dependence on outside third parties for the processing and handling of our records and data; the costs of complying with extensive governmental regulation; the risk that internal controls and procedures might fail or be circumvented; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the potential impact of climate change related legislative and regulatory initiatives; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; the volatility of our stock price; our dependence on the soundness of other financial institutions; 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. 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, pre-tax pre-provision net revenue, 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, 2026 and December 31, 2025. 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-to-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. Excluding wholesale brokered deposits, as of March 31, 2026, the Company had approximately 27 thousand deposit accounts with an average balance of approximately $32.8 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 $231.0 million, or 22.1% of total deposits, as of March 31, 2026. As of December 31, 2025, estimated uninsured deposits totaled $218.0 million, or 21.2% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP. 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. View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-first-quarter-2026-results-302757755.html

BIRMINGHAM, Ala., Jan. 28, 2026 /PRNewswire/ -- Fourth Quarter and Full Year Highlights: 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 $0.36 per diluted share, for the quarter ended December 31, 2025 ("4Q2025"), compared to $1.9 million, or $0.32 per diluted share, for the quarter ended September 30, 2025 ("3Q2025") and $1.7 million, or $0.29 per diluted share, for the quarter ended December 31, 2024 ("4Q2024"). For the year ended December 31, 2025, net income totaled $6.0 million, or $1.00 per diluted share, compared to $8.2 million, or $1.33 per diluted share, for the year ended December 31, 2024. The table below summarizes selected financial data for each of the periods presented. CEO Commentary "We are pleased to conclude 2025 with a quarter of continued strong earnings growth," stated James F. House, President and CEO of the Company. "Fourth quarter net income improved by 10% compared to the prior quarter and 24% compared to the fourth quarter of 2024. In addition, we saw continued improvement in loan portfolio credit metrics, with substantial decreases in both net charge-offs and nonperforming assets," continued Mr. House. "While 2025 was a challenging year, particularly related to credit issues that were largely resolved by the third quarter, we have continued to build momentum and are excited about the Company's prospects for 2026." 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. Total loans decreased by $14.5 million in 4Q2025 as growth in the multi-family residential real estate and C&I categories was offset by decreases primarily in the commercial real estate, construction, and indirect consumer categories. The decrease in non-residential commercial real estate was related to completed construction projects that moved into a permanent category, but were subsequently refinanced into the permanent market. The decrease in construction is consistent with the ebb and flow of projects in the Company's service territories. Construction loans are generally short-to-medium term loans that are expected to pay off or transfer to another loan category upon project completion. The decrease in indirect consumer was related to the seasonality of the types of collateral financed in this category. Despite the decrease in loan volume during the final quarter, for the year ended December 31, 2025, total loans increased by $30.0 million, or 3.6%. The annual growth was due to substantial growth in the consumer indirect category, and to a lesser extent, the multi-family residential and C&I categories. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the year ended December 31, 2025 was 797, while the weighted average credit score for the entire portfolio was 783. For the year ended December 31, 2025, the Company's average total loan balance increased by $37.5 million, or 4.6%, compared to the year ended December 31, 2024. Consistent with the prevailing interest rate environment, aggregate loan yields generally decreased in 2025. The average yield on loans totaled 6.03% in 4Q2025, compared to 6.10% in 3Q2025 and 6.12% in 4Q2024. For the year ended December 31, 2025, the average loan yield was 6.06%, compared to 6.29% for the year ended December 31, 2024. Deposits – Total deposits increased by $25.5 million, or 2.5%, during 4Q2025, due primarily to increases in interest-bearing demand deposits of $9.2 million and increases in certificates of deposit of $18.4 million, partially offset by a $2.1 million decrease in noninterest-bearing deposits. The growth in certificates of deposit balances during the quarter resulted from net growth of $26.2 million in wholesale brokered deposits, partially offset by a reduction of $7.8 million in retail balances. The brokered deposits acquired by the Company in 4Q2025 were obtained in conjunction with interest rate derivative instruments that are intended to support the Company's overall interest rate hedging strategy. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $838.3 million, or 81.6% of total deposits, as of December 31, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. The average rate on deposits totaled 2.19% during 4Q2025, compared to 2.14% during 3Q2025, and 2.28% during 4Q2024. Fluctuations in deposit costs have been relatively consistent with changes in market interest rates; however, significant competitive pressure remains to acquire and maintain deposit balances in the current environment. For the year ended December 31, 2025, the Company's average rate on deposits totaled 2.12%, compared to 2.25% for the year ended December 31, 2024. Net Interest Income and Margin – Net interest income in 4Q2025 decreased by $0.2 million, or 2.5%, compared to 3Q2025 and increased by $0.7 million, or 7.7%, compared to 4Q2024. Net interest margin was 3.46% for 4Q2025, compared to 3.60% for 3Q2025 and 3.41% for 4Q2024. For the year ended December 31, 2025, net interest income increased by $1.3 million, or 3.6%, compared to the year ended December 31, 2024, while net interest margin decreased to 3.54% from 3.59% comparing 2025 to 2024. Provision for Credit Losses – During 4Q2025, the Company recorded a provision for credit losses of $0.2 million, compared to $0.6 million in 3Q2025 and $0.5 million in 4Q2024. For the year ended December 31, 2025, the provision for credit losses totaled $4.0 million, compared to $0.6 million for the year ended December 31, 2024. Of the total provision recorded in 2025, $2.7 million occurred in the second quarter and resulted from substantial growth in the consumer indirect category, combined with an increase in net charge-offs in the category, as well as from additional credit allowances on two individually evaluated commercial loans. During both 3Q2025 and 4Q2025, charge-offs associated with the indirect portfolio decreased relative to the second quarter and credit issues associated with the two individually evaluated commercial loans were substantially resolved. During 4Q2025, credit metrics related to the loan portfolio generally improved; however, uncertainty continues to exist pertaining to the ultimate impact on the Company's loan portfolio of economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability. As of December 31, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.25%, compared to 1.24% as of December 31, 2024. Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $3.1 million in both 4Q2025 and 3Q2025, compared to $2.8 million in 4Q2024. For the year ended December 31, 2025, PPNR totaled $12.0 million compared to $11.4 million for the year ended December 31, 2024. As a percentage of average assets, PPNR totaled 1.09% in 4Q2025 compared to 1.08% in 3Q2025 and 1.02% in 4Q2024. For the year ended December 31, 2025, PPNR as a percentage of average assets was 1.07% compared to 1.06% for the year ended December 31, 2024. Refer to the non-GAAP reconciliation of PPNR to net income beginning on page 11. Short-term Borrowings – As of December 31, 2025, the Company did not have any short-term borrowings outstanding, compared to $10.0 million in outstanding short-term borrowings as of December 31, 2024. As of December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days and were borrowed exclusively from the Federal Home Loan Bank of Atlanta (FHLB). Cash and Investment Securities – As of December 31, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $78.4 million, or 6.8% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $168.5 million as of December 31, 2025 compared to $168.6 million as of December 31, 2024. As of December 31, 2025, the expected average life of securities in the investment portfolio was 3.7 years compared to 3.6 years as of December 31, 2024. During the year ended December 31, 2025 and 2024, the Company purchased $43.7 million and $58.0 million, respectively, of investment securities at market rates in existence at the time of purchase. These purchases, combined with the maturity and paydown of investment securities at lower rates have led to continued improvement in yield on the portfolio. The yield on investment securities, including both available-for-sale and held to maturity securities, totaled 3.81% during 4Q2025, compared to 3.65% during 3Q2025 and 3.26% during 4Q2024. For the year ended December 31, 2025, the yield on investment securities totaled 3.59%, compared to 3.02% for the year ended December 31, 2024. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $1.6 million as of December 31, 2025, a decrease from $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets decreased to 0.14% as of December 31, 2025 compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.08% during 4Q2025 compared to 0.61% during 3Q2025 and 0.24% during 4Q2024. For the year ended December 31, 2025, annualized net charge-offs as a percentage of average loans totaled 0.41% compared to 0.14% for the year ended December 31 2024. Non-interest Income – Non-interest income remained relatively consistent, totaling $1.0 million in 4Q2025 compared to $0.9 million in 3Q2025 and $1.0 million in 4Q2024. For both years ended December 31, 2025 and 2024, non-interest income totaled $3.6 million. Non-interest Expense – Non-interest expense totaled $7.3 million in 4Q2025, compared to $7.4 million in 3Q2025 and $6.9 million in 4Q2024 The expense increase comparing 4Q2025 to 4Q2024 resulted primarily from increases in salaries and benefits and fees for professional services. For the year ended December 31, 2025, non-interest expense totaled $29.1 million, compared to $28.4 million for the year ended December 31, 2024, an increase of 2.5%. Shareholders' Equity – As of December 31, 2025, shareholders' equity totaled $105.6 million, or 9.15% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders' equity during the year ended December 31, 2025 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 period by reductions in the Company's accumulated other comprehensive loss resulting from the maturity of lower yielding investment securities combined with purchases of securities at higher yields. The Company's ratio of tangible common equity to tangible assets was 8.56% as of December 31, 2025 compared to 8.33% as of December 31, 2024. Cash Dividend – In 4Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in all previous quarters of 2025 and 4Q2024. For the year ended December 31, 2025, the Company declared cash dividends totaling $0.28 per share, compared to $0.22 per share for the year ended December 31, 2024. Share Repurchases – During 4Q2025, the Company completed the repurchase of 88,000 shares of its common stock at a weighted average price of $13.93 per share. For the year ended December 31, 2025, repurchases totaled 128,000 shares at a weighted average price of $13.76 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded during 4Q2025 by an additional 1,000,000 shares. As of December 31, 2025, 1,784,813 shares remained available for repurchase under the program. Regulatory Capital – During 4Q2025, 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, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.88%, its total capital ratio was 12.05%, and its Tier 1 leverage ratio was 9.03%. Liquidity – As of December 31, 2025, 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, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity. Banking Center Growth – During 4Q2025, the Company continued 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. It is currently anticipated that the location will open to the public during the first half of 2026. In addition, during 4Q2025, the Company opened a new automated banking facility in Mountain Brook, Alabama. 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 the effects of any government shutdown; loan losses may be greater than anticipated; our ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future financial obligations; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; liquidity risks; the impact of national and local market conditions on the Company's business and operations; the effects of significant changes to the structure and operations of the federal government; the rate of growth (or lack thereof) in the economy generally and in the Company's service areas; the effects of significant changes to the structure and operations of the federal government; digital banking trends may create deposit volatility; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); the costs of complying with extensive governmental regulation; the risk that internal controls and procedures might fail or be circumvented; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the potential impact of climate change related legislative and regulatory initiatives; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; the volatility of our stock price; our dependence on the soundness of other financial institutions; 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. 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, pre-tax pre-provision net revenue, 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 December 31, 2025 and December 31, 2024. 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-to-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 December 31, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $324.1 million and $319.9 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 December 31, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.0 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 $218.0 million, or 21.2% of total deposits, as of December 31, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.3% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP. 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. View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-fourth-quarter-and-2025-results-quarter-over-quarter-net-income-improvement-of-10-302672976.html

BIRMINGHAM, Ala., Oct. 29, 2025 /PRNewswire/ -- Third Quarter Highlights: First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.9 million, or $0.32 per diluted share, for the quarter ended September 30, 2025 ("3Q2025"), compared to $0.2 million, or $0.03 per diluted share, for the quarter ended June 30, 2025 ("2Q2025") and $2.2 million, or $0.36 per diluted share, for the quarter ended September 30, 2024 ("3Q2024"). For the nine months ended September 30, 2025, net income totaled $3.9 million, or $0.64 per diluted share, compared to $6.5 million, or $1.04 per diluted share, for the nine months ended September 30, 2024. The table below summarizes selected financial data for each of the periods presented. CEO Commentary "We returned to solid earnings during the third quarter as the provision for credit losses on loans decreased substantially from the second quarter," stated James F. House, President and CEO of the Company. "The credit issues with two commercial loans that manifested earlier in the year have now been largely resolved, and net charge-offs associated with consumer indirect loans decreased to more normalized levels during the third quarter. In addition, we saw continued improvement in net interest income and margin, and pre-tax pre-provision net revenue, which increased by 7.1%, comparing the third quarter to the second quarter," continued Mr. House. "All of these are positive developments that reflect the strong momentum our team has built as we move toward the end of the year." 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. Total loans decreased by $3.9 million in 3Q2025 as growth in the consumer indirect and C&I categories was offset by decreases in construction, multi-family residential and commercial real estate. While total loans decreased during the quarter, average loans increased due to substantial growth, primarily in the consumer indirect category, earlier in the year. Average loans increased to $871.9 million in 3Q2025, compared to $857.7 million during 2Q2025, and $821.4 million during 3Q2024. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the nine months ended September 30, 2025 was 798, while the weighted average credit score for the entire portfolio was 782. For the nine months ended September 30, 2025, the Company's average total loan balance increased by $30.6 million, or 3.7%, compared to the nine months ended September 30, 2024. While loan yields increased modestly during 3Q2025 compared to 2Q2025, during the nine months ended September 30, 2025, aggregate loan yields generally decreased compared to the corresponding period of 2024, consistent with the general interest rate environment. Average yield on loans totaled 6.10% during 3Q2025, compared to 6.07% during 2Q2025 and 6.40% during 3Q2024. For the nine months ended September 30, 2025, average loan yields totaled 6.07%, compared to 6.34% for the nine months ended September 30, 2024. Net Interest Income and Margin – Net interest income in 3Q2025 increased by $0.2 million, or 2.0%, compared to 2Q2025 and increased by $0.5 million, or 5.2%, compared to 3Q2024. Net interest margin increased to 3.60% for 3Q2025 (matching the 3Q2024 level), compared to 3.59% for 2Q2025. For the nine-month period ended September 30, 2025, net interest margin was 3.57% compared to 3.65% for the nine-month period ended September 30, 2024. Provision for Credit Losses – During 3Q2025, the Company recorded a provision for credit losses of $0.6 million, compared to $2.7 million in 2Q2025 and $0.2 million in 3Q2024. The significantly larger provision for credit losses in 2Q2025 resulted primarily from substantial growth in the consumer indirect category, combined with an increase in net charge-offs in the category, as well as from additional credit allowances on two individually evaluated commercial loans. During 3Q2025, charge-offs associated with the indirect portfolio decreased relative to 2Q2025 and credit issues associated with the two individually evaluated commercial loans were substantially resolved. For the nine months ended September 30, 2025, the provision for credit losses totaled $3.8 million, compared to $0.2 million for the nine months ended September 30, 2024. As of September 30, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.23%, compared to 1.24% as of December 31, 2024. Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $3.1 million in 3Q2025, compared to $2.9 million in 2Q2025 and $3.1 million in 3Q2024. For the nine months ended September 30, 2025, PPNR totaled $8.8 million compared to $8.6 million for the nine months ended September 30, 2024. As a percentage of average assets, PPNR totaled 1.08% in 3Q2025 compared to 1.03% in 2Q2025 and 1.14% in 3Q2024. For the nine months ended September 30, 2025, PPNR as a percentage of average assets was 1.06% compared to 1.07% for the nine months ended September 30, 2024. Refer to the non-GAAP reconciliation of PPNR to net income beginning on page 11. Deposits – Total deposits increased by $15.6 million, or 1.6%, during 3Q2025, due primarily to increases in both interest-bearing and noninterest-bearing demand deposit accounts, partially offset by a decrease in certificates of deposit. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $838.4 million, or 83.6% of total deposits, as of September 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. The average rate on deposits totaled 2.14% during 3Q2025, compared to 2.08% during 2Q2025 and 2.36% during 3Q2024. Fluctuations in deposit costs have been relatively consistent with changes in market interest rates; however, significant competitive pressure remains to acquire and maintain deposit balances in the current environment. For the nine months ended September 30, 2025, the Company's average rate on deposits totaled 2.10%, compared to 2.24% for the nine months ended September 30, 2024. Short-term Borrowings – As of September 30, 2025, the Company had $20.0 million in short-term borrowings outstanding compared to $10.0 million outstanding as of December 31, 2024. The short-term borrowings were held as part of the Company's efforts to maintain on-balance sheet liquidity levels while repricing deposits at lower rates. As of both September 30, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of September 30, 2025 included $10.0 million borrowed from the Federal Home Loan Bank of Atlanta ("FHLB") and $10.0 million borrowed from the Federal Reserve Bank's ("FRB") discount window. As of December 31, 2024, all short-term borrowings outstanding were borrowed exclusively from the FHLB. Deployment of Funds – As of September 30, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $59.5 million, or 5.2% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $164.5 million as of September 30, 2025 compared to $168.6 million as of December 31, 2024. As of September 30, 2025, the expected average life of securities in the investment portfolio was 4.2 years compared to 3.6 years as of December 31, 2024. During the nine months ended September 30, 2025 and 2024, the Company purchased $34.0 million and $27.5 million, respectively, of investment securities at market rates in existence at the time of purchase. These purchases, combined with the maturity and paydown of investment securities at lower rates have led to continued improvement in yield on the portfolio. The yield on the investment securities, including both available-for-sale and held to maturity securities, totaled 3.65% during 3Q2025, compared to 3.46% during 2Q2025 and 3.08% during 3Q2024. For the nine months ended September 30, 2025, the yield on investment securities totaled 3.52%, compared to 2.93% for the nine months ended September 30, 2024. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $2.2 million as of September 30, 2025, a decrease from $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets decreased to 0.19% as of September 30, 2025 compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.61% during 3Q2025 compared to 0.79% during 2Q2025 and 0.12% during 3Q2024. Net charge-offs in 3Q2025 totaled $1.3 million, of which $1.0 million was associated with the final charge-off of an individually evaluated commercial loan and $0.4 million was associated with the consumer indirect portfolio, partially offset by $0.1 million in net recoveries in other loan categories. For the nine months ended September 30, 2025, annualized net charge-offs as a percentage of average loans totaled 0.52% compared to 0.10% for the nine months ended September 30, 2024. Net charge-offs over the nine months ended September 30, 2025 totaled $3.3 million, of which $2.2 million was associated with individually evaluated commercial loans and $1.3 million was associated with the consumer indirect portfolio, partially offset by $0.2 million in net recoveries in other portfolios. Non-interest Income – Non-interest income remained relatively consistent, totaling $0.9 million in 3Q2025 compared to $0.8 million in 2Q2025 and $0.9 million in 3Q2024. For both nine-month periods ended September 30, 2025 and 2024, non-interest income totaled $2.6 million. Non-interest Expense – Non-interest expense totaled $7.4 million in both 3Q2025 and 2Q2025, compared to $7.0 million in 3Q2024. The expense increase comparing 3Q2025 to 3Q2024 resulted primarily from increases in fees for professional services, write-downs on other real estate owned and inflationary increases in other miscellaneous expense categories. For the nine months ended September 30, 2025, non-interest expense totaled $21.8 million, compared to $21.4 million for the nine months ended September 30, 2024, an increase of $0.4 million, or 1.8%. Shareholders' Equity – As of September 30, 2025, shareholders' equity totaled $104.2 million, or 9.09% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders' equity during the nine months ended September 30, 2025 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 period 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 8.49% as of September 30, 2025 compared to 8.33% as of December 31, 2024. Cash Dividend – In 3Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in the two previous quarters of 2025. The Company's cash dividend was increased in 4Q2024 compared to a dividend declared of $0.05 per share in each of the first three quarters of 2024. Share Repurchases – The Company did not repurchase shares of its common stock during 3Q2025. During the nine-month period ended September 30, 2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company's previously announced share repurchase program. As of September 30, 2025, 872,813 shares remained available for repurchase under the program. Regulatory Capital – During 3Q2025, 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, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.77%, its total capital ratio was 11.92%, and its Tier 1 leverage ratio was 9.19%. Liquidity – As of September 30, 2025, 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, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity. Banking Center Growth – During 3Q2025, the Company continued its 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. It is currently anticipated that the location will open to the public during the first half of 2026. In addition, in October 2025, the Company opened a new automated banking facility in Mountain Brook, Alabama. 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; potential weakness in the residential real estate market; 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; the effects of significant changes to the structure and operations of the federal government; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); 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. 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, pre-tax pre-provision net revenue, 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, 2025 and December 31, 2024. 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-to-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, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $313.0 million and $319.9 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, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.2 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 $220.2 million, or 22.0% of total deposits, as of September 30, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP. 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. View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-third-quarter-2025-results-302598530.html

BIRMINGHAM, Ala., July 30, 2025 /PRNewswire/ -- Second Quarter Highlights: First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $0.2 million, or $0.03 per diluted share, for the quarter ended June 30, 2025 ("2Q2025"), compared to $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 ("1Q2025") and $2.1 million, or $0.34 per diluted share, for the quarter ended June 30, 2024 ("2Q2024"). For the six months ended June 30, 2025, net income totaled $1.9 million, or $0.32 per diluted share, compared to $4.2 million, or $0.68 per diluted share, for the six months ended June 30, 2024. The decrease in net income in both 2Q2025 and the six months ended June 30, 2025, compared to the previous periods, resulted primarily from an increase in the Company's provision for credit losses on loans and leases. The table below summarizes selected financial data for each of the periods presented. CEO Commentary "During the second quarter, we recorded a significant provision for credit losses associated with growth in indirect consumer lending, combined with an uptick in net charge-offs in the category, as well as the application of additional reserves on two individually evaluated commercial loans," stated James F. House, President and CEO of the Company. "While the additional provisioning had a pronounced impact on earnings for both the quarter and year-to-date period, we are encouraged by increases in both net interest margin and total loans during the quarter. Net interest margin expanded by six basis points compared to the previous quarter, and total loans grew by 2.7% during the quarter, bringing year-to-date loan growth to 5.9%. Our pre-tax pre-provision net revenue also increased by 0.9% compared to 1Q2025 and by 5.2% compared to 2Q2024," continued Mr. House. "All of these measures help build a solid base for the future." 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. Total loans increased by $23.1 million in 2Q2025, driven primarily by growth of $25.1 million in consumer indirect loans during the quarter. The indirect lending platform focuses on recreational and equipment consumer lending on the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the six months ended June 30, 2025 was 798, while the weighted average credit score for the entire portfolio was 781. In addition to the indirect portfolio, the Company also grew its multi-family residential real estate loan category by $12.4 million in 2Q2025. Loan growth during 2Q2025 was partially offset by reductions primarily in the construction and C&I categories. Total loan volume averaged $857.7 million during 2Q2025 compared to $824.5 million during 1Q2025 and $819.6 million during 2Q2024. For the six months ended June 30, 2025, average loan balances increased by $20.4 million, or 2.5%, compared to the six months ended June 30, 2024. Net Interest Income and Margin – Net interest income in 2Q2025 increased by $0.6 million, or 6.5%, compared to 1Q2025 and increased by $0.3 million, or 3.3%, compared to 2Q2024. Net interest margin was 3.59% for 2Q2025 compared to 3.53% for 1Q2025 and 3.69% for 2Q2024. The increase in net interest margin compared to the prior quarter resulted from increased average loan volume, as well as increases in yields on loans and investments. The decrease in net interest margin compared to 2Q2024 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2024. For the six months ended June 30, 2025, net interest margin was 3.56% compared to 3.67% for the six months ended June 30, 2024. Provision for Credit Losses – During 2Q2025, the Company recorded a provision for credit losses of $2.7 million, bringing the total provision for credit losses to $3.2 million for the six months ended June 30, 2025. No provision for credit losses was recorded in 2Q2024 or for the six months ended June 30, 2024. In both 2Q2025 and the six months ended June 30, 2025, the provision for credit losses resulted primarily from significant growth in the consumer indirect category, combined with an increase in net charge-offs in the category, as well as from additional reserves on two individually evaluated commercial loans. For 2Q2025, $1.4 million of the provision was associated with the indirect consumer portfolio, while $0.9 million was associated with specific reserves added for the two individually evaluated loans, with the remaining $0.4 million associated with various factors, including changes in economic forecasting data and increases in the allowance for unfunded commitments. For the six months ended June 30, 2025, $2.3 million of the provision was associated with the indirect consumer portfolio, while $0.9 million was associated with specific reserves added for the two individually evaluated loans. As of June 30, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.31%, compared to 1.24% as of December 31, 2024. Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $2.9 million in both 2Q2025 and 1Q2025, compared to $2.7 million in 2Q2024. For the six months ended June 30, 2025, PPNR totaled $5.7 million compared to $5.5 million for the six months ended June 30, 2024. As a percentage of average assets, PPNR totaled 1.03% in 2Q2025 compared to 1.06% in 1Q2025 and 1.03% in 2Q2024. For the six months ended June 30, 2025, PPNR as a percentage of average assets was 1.05% compared to 1.04% for the six months ended June 30, 2024. Refer to the non-GAAP reconciliation of PPNR beginning on page 11. Deposits –Total deposits increased by $24.9 million, or 2.6%, during 2Q2025, due primarily to increases in interest-bearing demand deposit accounts, as well as the addition of brokered certificates of deposit obtained to assist in the management of deposit costs. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $816.1 million, or 82.7% of total deposits, as of June 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. Short-term Borrowings – As of June 30, 2025, the Company had $35.0 million in short-term borrowings outstanding compared to $10.0 million outstanding as of December 31, 2024. The short-term borrowings were held as part of the Company's efforts to maintain on-balance sheet liquidity levels while repricing deposits at lower rates. As of both June 30, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of June 30, 2025 included $20.0 million borrowed from the Federal Home Loan Bank of Atlanta ("FHLB") and $15.0 million borrowed from the Federal Reserve Bank's ("FRB") discount window. As of December 31, 2024, all short-term borrowings outstanding were borrowed exclusively from the FHLB. Deployment of Funds – As of June 30, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $58.8 million, or 5.1% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $157.1 million as of June 30, 2025 compared to $168.6 million as of December 31, 2024. As of June 30, 2025, the expected average life of securities in the investment portfolio was 3.7 years compared to 3.6 years as of December 31, 2024. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $3.7 million as of June 30, 2025 compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets totaled 0.33% as of June 30, 2025 compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.79% during 2Q2025 compared to 0.13% during 1Q2025 and 0.10% during 2Q2024. For the six months ended June 30, 2025, net charge-offs as a percentage of average loans totaled 0.47% compared to 0.10% for the six months ended June 30, 2024. The increase in net charge-offs in both 2Q2025 and the six months ended June 30, 2025 was due to a partial charge-off of one individually evaluated commercial loan of $1.2 million during 2Q2025, as well as an increase in charge-offs associated with the indirect portfolio. During 2Q2025, net charge-offs associated with the indirect portfolio totaled $0.6 million compared to $0.3 million in both 1Q2025 and 2Q2024. For the six months ended June 30, 2025, net charge-offs associated with the indirect portfolio totaled $0.9 million, compared to $0.5 million for the six months ended June 30, 2024. Non-interest Income – Non-interest income remained relatively consistent, totaling $0.8 million in 2Q2025 compared to $0.9 million in 1Q2025 and $0.8 million in 2Q2024. For both six-month periods ended June 30, 2025 and 2024, non-interest income totaled $1.7 million. Non-interest Expense – Non-interest expense totaled $7.4 million in 2Q2025, compared to $6.9 million in 1Q2025 and $7.3 million in 2Q2024. The expense increase comparing 2Q2025 to 1Q2025 resulted primarily from increases in salaries and benefits and fees for professional services. For both six-month periods ended June 30, 2025 and 2024, non-interest expense totaled $14.4 million. Shareholders' Equity – As of June 30, 2025, shareholders' equity totaled $101.9 million, or 8.91% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders' equity during the six months ended June 30, 2025 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 period 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 8.31% as of June 30, 2025 compared to 8.33% as of December 31, 2024. Cash Dividend – In 2Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 1Q2025. The Company's cash dividend was increased in 4Q2024 compared to a dividend declared of $0.05 per share in each of the first three quarters of 2024. Share Repurchases – The Company did not repurchase shares of its common stock during 2Q2025. During 1Q2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company's previously announced share repurchase program. As of June 30, 2025, 872,813 shares remained available for repurchase under the program. Regulatory Capital – During 2Q2025, 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 June 30, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.70%, its total capital ratio was 11.93%, and its Tier 1 leverage ratio was 9.23%. Liquidity – As of June 30, 2025, 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, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity. Banking Center Growth – During 2Q2025, the Company continued its 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. It is currently anticipated that the location will open to the public during the first half of 2026. In addition, at the end of 2Q2025, the Company purchased land in Mobile, Alabama. It is intended that the land will be developed into an office complex that will house the Company's indirect lending operation, as well as provide an additional banking center in the area. 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; potential weakness in the residential real estate market; 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; the effects of significant changes to the structure and operations of the federal government; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); 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. 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, pre-tax pre-provision net revenue, 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 June 30, 2025 and December 31, 2024. 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-to-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 June 30, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $298.0 million and $319.9 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 June 30, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $31.1 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 $202.5 million, or 20.5% of total deposits, as of June 30, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP. 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. View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-second-quarter-2025-results-302517611.html SOURCE First US Bancshares, Inc.

BIRMINGHAM, Ala., April 30, 2025 /PRNewswire/ -- First Quarter Highlights: First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 ("1Q2025"), compared to $1.7 million, or $0.29 per diluted share, for the quarter ended December 31, 2024 ("4Q2024") and $2.1 million, or $0.34 per diluted share, for the quarter ended March 31, 2024 ("1Q2024"). The table below summarizes selected financial data for each of the periods presented. CEO Commentary "We are off to a good start in 2025, reporting a quarter with solid loan growth and meaningful improvement in net interest margin," stated James F. House, President and CEO of the Company. "Loans grew by 3.1% during the quarter and net interest margin increased by 12 basis points over the prior quarter. While the economic environment is currently quite volatile, we continue to believe that our disciplined approach to lending, investing and funds management will serve the Company well as we move through the year," 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. Total loans increased by $25.3 million in 1Q2025, driven primarily by growth of $41.3 million in consumer indirect loans during the quarter. The indirect lending platform focuses on recreational and equipment consumer lending on the higher end of the credit spectrum.  Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during 1Q2025 reached 800, while the weighted average credit score for the entire portfolio was 779. In addition to the indirect portfolio, the Company also grew its multi-family residential real estate and commercial and industrial lending categories during the quarter by $5.3 million and $0.9 million, respectively.  Loan growth during 1Q2025 was partially offset by reductions of $22.2 million in other lending categories, primarily construction and non-residential commercial real estate. Total loan volume averaged $824.5 million during 1Q2025, compared to $811.1 million during 4Q2024, and $822.0 million during 1Q2024. Net Interest Income and Margin – Net interest income in 1Q2025 increased by $0.1 million compared to 4Q2024 and decreased by $0.1 million compared to 1Q2024. Net interest margin was 3.53% for 1Q2025 compared to 3.41% for 4Q2024 and 3.65% for 1Q2024. The increase in net interest margin compared to the prior quarter resulted from increased average loan volume, as well as reductions in total funding costs from deposits and borrowings. The decrease in net interest margin compared to 1Q2024 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2024. Deposits – Total deposits decreased by $10.6 million, or 1.1%, during 1Q2025, due primarily to reductions in interest-bearing demand deposit accounts, and to a lesser extent, reductions in non-interest-bearing demand deposit accounts. These reductions resulted in part from lower deposit pricing implemented by management during the quarter in an effort to improve net interest margin. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $813.9 million, or 84.6% of total deposits, as of March 31, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. Short-term Borrowings – As of March 31, 2025, the Company had $45.0 million in short-term borrowings outstanding, compared to $10.0 million outstanding as of December 31, 2024. The short-term borrowings were held as part of the Company's efforts to maintain on-balance sheet liquidity levels while repricing deposits at lower rates. As of both March 31, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of March 31, 2025 included $25.0 million borrowed from the Federal Home Loan Bank of Atlanta ("FHLB") and $20.0 million borrowed from the Federal Reserve Bank's ("FRB") discount window. As of December 31, 2024, all short-term borrowings outstanding were borrowed exclusively from the FHLB. Deployment of Funds – As of March 31, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $61.5 million, or 5.5% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $161.9 million as of March 31, 2025, compared to $168.6 million as of December 31, 2024. As of March 31, 2025, the expected average life of securities in the investment portfolio was 4.0 years, compared to 3.6 years as of December 31, 2024.    Provision for Credit Losses – During 1Q2025 the Company recorded a provision for credit losses of $0.5 million due primarily to loan growth during the quarter. The provision in 1Q2025 was consistent with provisioning taken during 4Q2024 and was attributable to continued loan growth, as well as increases associated with individually evaluated loans. No provision for credit losses was taken in 1Q2024.  As of March 31, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.23%, compared to 1.24% as of December 31, 2024. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $5.0 million as of March 31, 2025, compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets totaled 0.44% as of March 31, 2025, compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.13% during 1Q2025, compared to 0.24% during 4Q2024 and 0.09% during 1Q2024. Non-interest Income – Non-interest income remained relatively consistent, totaling $0.9 million in 1Q2025 compared to $1.0 million in 4Q2024 and $0.9 million in 1Q2024. Non-interest Expense – Non-interest expense totaled $6.9 million in both 1Q2025 and 4Q2024, compared to $7.1 million in 1Q2024. The expense reduction comparing 1Q2025 to 1Q2024 resulted primarily from decreases in salaries and benefits and fees for professional services. These reductions were partially offset by an increase in other expense that resulted primarily from a recovery of check fraud expense that occurred in 1Q2024, but was not repeated in 1Q2025. Shareholders' Equity – As of March 31, 2025, shareholders' equity totaled $101.2 million, or 8.98% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders' equity during 1Q2025 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 quarter 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 8.38% as of March 31, 2025, compared to 8.33% as of December 31, 2024. Cash Dividend – In 1Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 4Q2024. The Company's cash dividend was increased in 4Q2024, compared to a dividend declared of $0.05 per share in each of the first three quarters of 2024. Share Repurchases – During 1Q2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company's previously announced share repurchase program. As of March 31, 2025, 872,813 shares remained available for repurchase under the program. Regulatory Capital – During 1Q2025, 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, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.08%, its total capital ratio was 12.23%, and its Tier 1 leverage ratio was 9.55%. Liquidity – As of March 31, 2025, 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, FHLB advances, the FRB's discount window, and brokered deposits. Banking Center Growth – During 1Q2025, the Company continued its 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. It is currently anticipated that the location will open to the public by the fourth quarter of 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; potential weakness in the residential real estate market; 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; the effects of significant changes to the structure and operations of the federal government; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); 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.       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, 2025 and December 31, 2024. 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-to-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, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $285.3 million and $319.9 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 March 31, 2025, the Company had approximately 29 thousand deposit accounts with an average balance of approximately $30.0 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 $202.6 million, or 21.1% of total deposits, as of March 31, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% 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.     View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-first-quarter-2025-results-302442805.html SOURCE First US Bancshares, Inc.