First US Bancshares, Inc. Reports Fourth Quarter and 2025 Results: Quarter-over-Quarter Net Income Improvement of 10%

Rhea-AI Summary

First US Bancshares (Nasdaq: FUSB) reported 4Q2025 net income of $2.1 million ($0.36 diluted), a 10% sequential increase and 24% year-over-year improvement. Full-year 2025 net income was $6.0 million versus $8.2 million in 2024. Nonperforming assets fell to 0.14% of assets and ACL was 1.25%. Net interest margin was 3.46% for 4Q2025. Deposits totaled $1.028 billion and total loans were $853.0 million at quarter end.

Positive

• 4Q2025 net income improved 10% QoQ
• 4Q2025 net income +24% YoY
• Nonperforming assets declined to 0.14% of assets
• Investment securities yield rose to 3.59% (2025)

Negative

• Full-year 2025 net income fell to $6.0M from $8.2M (≈27% decline)
• Provision for credit losses rose to $4.0M in 2025 from $0.6M in 2024

Key Figures

Q4 2025 net income: $2.1M Q4 2025 diluted EPS: $0.36 2025 net income: $6.0M +5 more

8 metrics

Q4 2025 net income $2.1M Quarter ended December 31, 2025

Q4 2025 diluted EPS $0.36 Quarter ended December 31, 2025

2025 net income $6.0M Year ended December 31, 2025 vs $8.2M in 2024

2025 diluted EPS $1.00 Year ended December 31, 2025 vs $1.33 in 2024

Q4 2025 net interest margin 3.46% Compared to 3.60% in 3Q2025 and 3.41% in 4Q2024

Nonperforming assets $1.6M As of December 31, 2025 vs $5.5M at December 31, 2024

ACL ratio 1.25% ACL on loans and leases as % of total loans at Dec 31, 2025

Quarterly dividend $0.07 per share Declared in 4Q2025; total 2025 dividends $0.28 vs $0.22 in 2024

Market Reality Check

Price: $14.49 Vol: Volume 1,482 is about 80%...

low vol

$14.49 Last Close

Volume Volume 1,482 is about 80% below the 20-day average of 7,248, suggesting a light reaction so far. low

Technical Shares at $14.49 trade above the 200-day MA $12.95, sitting 3.14% below the 52-week high and 40.68% above the 52-week low.

Peers on Argus

FUSB gained 0.56% while peers were mixed: BOTJ +2.77%, FNWB +0.42%, AUBN +1.00%,...

FUSB gained 0.56% while peers were mixed: BOTJ +2.77%, FNWB +0.42%, AUBN +1.00%, BYFC -1.72%, IROQ roughly flat at -0.04%. The move appears stock-specific rather than a broad regional bank shift.

Historical Context

5 past events · Latest: Nov 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 19	Buyback expansion	Positive	+1.4%	Expanded and extended share repurchase authorization with added 1,000,000 shares.
Nov 19	Dividend declaration	Positive	+1.4%	Announced $0.07 per share cash dividend, 46th consecutive quarterly payout.
Oct 29	Q3 2025 earnings	Negative	-2.2%	Net income below prior year despite QoQ rebound; higher credit loss provision earlier.
Aug 28	Board change	Positive	+0.7%	New director added with extensive corporate law and M&A experience.
Aug 27	Dividend declaration	Positive	+0.7%	Declared $0.07 quarterly dividend, extending multi-year dividend streak.

Pattern Detected

Recent news, including buyback expansion and steady dividends, has generally seen modest positive price alignment, while weaker earnings drew a negative reaction.

Recent Company History

Over the last six months, FUSB has highlighted capital returns and gradual earnings recovery. A Nov 19, 2025 buyback expansion and recurring $0.07 quarterly dividends both coincided with modest gains around +1.4%. Third-quarter 2025 earnings showed net income improvement versus 2Q but still trailed the prior year, with shares slipping about 2.17%. Governance updates, such as a new director appointment, also drew mildly positive reactions. Today’s fourth-quarter report continues the theme of incremental earnings and asset-quality improvement against a softer full-year backdrop.

Market Pulse Summary

This announcement highlights a solid Q4 2025 finish, with net income of $2.1M and diluted EPS of $0....

Analysis

This announcement highlights a solid Q4 2025 finish, with net income of $2.1M and diluted EPS of $0.36, alongside better asset quality as nonperforming assets declined to $1.6M or of total assets. At the same time, full-year net income dropped to $6.0M from $8.2M, reflecting earlier credit pressures. Investors may focus on loan growth in indirect consumer and multi-family categories, trends in the 3.46% net interest margin, and whether credit costs stay contained in 2026.

Key Terms

efficiency ratio, net interest margin, allowance for credit losses, pre-tax pre-provision net revenue, +1 more

5 terms

efficiency ratio financial

"Efficiency ratio (2) | | 69.8 | %"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

net interest margin financial

"Net interest margin | | 3.46 | %"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

"Allowance for credit losses ("ACL") on loans and leases | | 10,704"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

pre-tax pre-provision net revenue financial

"Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $3.1 million"

Pre-tax pre-provision net revenue is a banking measure of how much money a firm generates from its core activities — mainly interest earned minus interest paid, plus other income, minus operating costs — before taking out taxes and setting aside reserves for potential loan losses. Think of it as a shop’s gross operating cash flow before it pays taxes or puts money aside for customers who might not pay; investors use it to judge underlying earning power and how much cushion a bank has against credit problems.

tier 1 leverage ratio financial

"Tier 1 leverage ratio (3) | | 9.03 | %"

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

AI-generated analysis. Not financial advice.

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.

		Quarter Ended																				Year Ended
		2025																2024				2025				2024
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
Results of Operations: (Dollars in Thousands)		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest income		$	15,262			$	15,281			$	14,854			$	14,018			$	14,420			$	59,415			$	58,260
Interest expense			5,839				5,619				5,378				5,121				5,672				21,957				22,111
Net interest income			9,423				9,662				9,476				8,897				8,748				37,458				36,149
Provision for credit losses			220				566				2,717			528					470				4,031				622
Net interest income after provision for credit losses			9,203				9,096				6,759				8,369				8,278				33,427				35,527
Non-interest income			995				860				849				875				982				3,579				3,583
Non-interest expense			7,271				7,437				7,444				6,918				6,947				29,070				28,356
Income before income taxes			2,927				2,519				164				2,326				2,313				7,936				10,754
Provision for income taxes			798				583				9				554				599				1,944				2,584
Net income		$	2,129			$	1,936			$	155			$	1,772			$	1,714			$	5,992			$	8,170
Per Share Data:
Basic net income per share		$	0.37			$	0.33			$	0.03			$	0.30			$	0.30			$	1.03			$	1.40
Diluted net income per share		$	0.36			$	0.32			$	0.03			$	0.29			$	0.29			$	1.00			$	1.33
Dividends declared		$	0.07			$	0.07			$	0.07			$	0.07			$	0.07			$	0.28			$	0.22
Key Measures (Period End):
Total assets		$	1,154,785			$	1,147,175			$	1,143,379			$	1,126,967			$	1,101,086
Tangible assets (1)			1,147,350				1,139,740				1,135,932				1,119,502				1,093,602
Total loans			853,018				867,520				871,431				848,335				823,039
Allowance for credit losses ("ACL") on loans and leases			10,704				10,700				11,388				10,405				10,184
Investment securities, net			168,540				164,493				157,137				161,946				168,570
Total deposits			1,027,962				1,002,472				986,846				961,952				972,557
Short-term borrowings			—				20,000				35,000				45,000				10,000
Long-term borrowings			10,945				10,927				10,909				10,890				10,872
Total shareholders' equity			105,648				104,238				101,892				101,231				98,624
Tangible common equity (1)			98,213				96,803				94,445				93,766				91,140
Book value per common share			18.53				18.08				17.70				17.64				17.31
Tangible book value per common share (1)			17.23				16.79				16.41				16.34				16.00
Key Ratios:
Return on average assets (annualized)			0.74	%			0.68	%			0.06	%			0.66	%			0.63	%			0.53	%			0.76	%
Return on average common equity (annualized)			8.04	%			7.48	%			0.61	%			7.21	%			6.92	%			5.86	%			8.62	%
Return on average tangible common equity (annualized) (1)			8.65	%			8.06	%			0.66	%			7.79	%			7.49	%			6.32	%			9.37	%
Pre-tax pre-provision net revenue to average assets (annualized) (1)			1.09	%			1.08	%			1.03	%			1.06	%			1.02	%			1.07	%			1.06	%
Net interest margin			3.46	%			3.60	%			3.59	%			3.53	%			3.41	%			3.54	%			3.59	%
Efficiency ratio (2)			69.8	%			70.7	%			72.1	%			70.8	%			71.4	%			70.8	%			71.4	%
Total loans to deposits			83.0	%			86.5	%			88.3	%			88.2	%			84.6	%
Total loans to assets			73.9	%			75.6	%			76.2	%			75.3	%			74.7	%
Common equity to total assets			9.15	%			9.09	%			8.91	%			8.98	%			8.96	%
Tangible common equity to tangible assets (1)			8.56	%			8.49	%			8.31	%			8.38	%			8.33	%
Tier 1 leverage ratio (3)			9.03	%			9.19	%			9.23	%			9.55	%			9.50	%
ACL on loans and leases as % of total loans			1.25	%			1.23	%			1.31	%			1.23	%			1.24	%
Nonperforming assets as % of total assets			0.14	%			0.19	%			0.33	%			0.44	%			0.50	%
Net charge-offs as a percentage of average loans (annualized)			0.08	%			0.61	%			0.79	%			0.13	%			0.24	%			0.41	%			0.14	%

(1)  Refer to the non-GAAP reconciliations beginning on page 10.

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

(3)  First US Bank Tier 1 leverage ratio

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.

		Quarter Ended
		2025								2024
		December 31,		September 30,		June 30,		March 31,		December 31,
		(Dollars in Thousands)
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Real estate loans:
Construction, land development and other land loans		$32,618		$38,560		$48,101		$58,572		$65,537
Secured by 1-4 family residential properties		66,996		67,620		67,587		68,523		69,999
Secured by multi-family residential properties		117,769		112,763		118,807		106,374		101,057
Secured by non-residential commercial real estate		200,699		211,400		215,035		214,065		227,751
Commercial and industrial loans ("C&I")		48,360		46,562		40,986		45,166		44,238
Consumer loans:
Direct		4,844		4,999		4,836		4,610		4,774
Indirect		381,732		385,616		376,079		351,025		309,683
Total loans and leases held for investment		853,018		867,520		871,431		848,335		823,039
Allowance for credit losses on loans and leases		10,704		10,700		11,388		10,405		10,184
Net loans and leases held for investment		$842,314		$856,820		$860,043		$837,930		$812,855

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.

FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Dollars in Thousands) (Unaudited)
		Three Months Ended						Three Months Ended
		December 31, 2025						December 31, 2024
		Average Balance		Interest		Annualized Yield/Rate %		Average Balance		Interest		Annualized Yield/Rate %
ASSETS
Interest-earning assets:
Loans		$869,308		$13,203		6.03 %		$811,125		$12,480		6.12 %
Investment securities		169,033		1,623		3.81 %		159,298		1,306		3.26 %
Federal Home Loan Bank stock		1,560		26		6.61 %		858		16		7.42 %
Federal funds sold and securities purchased under reverse repurchase agreements		4,850		49		4.01 %		10,951		140		5.09 %
Interest-bearing deposits in banks		36,294		361		3.95 %		38,341		478		4.96 %
Total interest-earning assets		1,081,045		15,262		5.60 %		1,020,573		14,420		5.62 %
Noninterest-earning assets		64,431						65,498
Total assets		$1,145,476						$1,086,071
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits		$199,043		395		0.79 %		$207,890		538		1.03 %
Money market/savings deposits		310,771		2,059		2.63 %		255,480		1,694		2.64 %
Time deposits		335,090		3,088		3.66 %		346,412		3,299		3.79 %
Total interest-bearing deposits		844,904		5,542		2.60 %		809,782		5,531		2.72 %
Noninterest-bearing demand deposits		158,081		—		—		155,034		—		—
Total deposits		1,002,985		5,542		2.19 %		964,816		5,531		2.28 %
Borrowings		27,849		297		4.23 %		12,493		141		4.49 %
Total funding liabilities		1,030,834		5,839		2.25 %		977,309		5,672		2.31 %
Other noninterest-bearing liabilities		9,575						10,144
Shareholders' equity		105,067						98,618
Total liabilities and shareholders' equity		$1,145,476						$1,086,071
Net interest income				$9,423						$8,748
Net interest margin						3.46 %						3.41 %

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN YEAR ENDED DECEMBER 31, 2025 AND 2024 (Dollars in Thousands) (Unaudited)
		Year Ended						Year Ended
		December 31, 2025						December 31, 2024
		Average Balance		Interest		Annualized Yield/Rate %		Average Balance		Interest		Annualized Yield/Rate %
ASSETS
Interest-earning assets:
Loans		$856,035		$51,846		6.06 %		$818,524		$51,469		6.29 %
Investment securities		160,272		5,761		3.59 %		145,523		4,400		3.02 %
Federal Home Loan Bank stock		1,388		97		6.99 %		891		69		7.74 %
Federal funds sold and securities purchased under reverse repurchase agreements		4,850		209		4.31 %		6,930		366		5.28 %
Interest-bearing deposits in banks		34,859		1,502		4.31 %		36,399		1,956		5.37 %
Total interest-earning assets		1,057,404		59,415		5.62 %		1,008,267		58,260		5.78 %
Noninterest-earning assets		64,133						65,931
Total assets		$1,121,537						$1,074,198
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits		$202,661		1,712		0.84 %		$205,581		1,779		0.87 %
Money market/savings deposits		285,624		7,413		2.60 %		251,772		6,856		2.72 %
Time deposits		341,986		11,779		3.44 %		346,541		12,914		3.73 %
Total interest-bearing deposits		830,271		20,904		2.52 %		803,894		21,549		2.68 %
Noninterest-bearing demand deposits		155,320		—		—		152,252		—		—
Total deposits		985,591		20,904		2.12 %		956,146		21,549		2.25 %
Borrowings		24,180		1,053		4.35 %		13,404		562		4.19 %
Total funding liabilities		1,009,771		21,957		2.17 %		969,550		22,111		2.28 %
Other noninterest-bearing liabilities		9,534						9,898
Shareholders' equity		102,232						94,750
Total liabilities and shareholders' equity		$1,121,537						$1,074,198
Net interest income				$37,458						$36,149
Net interest margin						3.54 %						3.59 %

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Share and Per Share Data)
		December 31,				December 31,
		2025				2024
		(Unaudited)
ASSETS
Cash and due from banks		$	9,401			$	10,633
Interest-bearing deposits in banks			64,146				36,583
Total cash and cash equivalents			73,547				47,216
Federal funds sold and securities purchased under reverse repurchase agreements			4,850				5,727
Investment securities available-for-sale, at fair value (amortized cost $169,037 and     $174,597; net of allowance for credit losses of $- and $-)			168,075				167,888
Investment securities held-to-maturity, at amortized cost, net of allowance for credit     losses of $- and $-, (fair value 2025 - $449, 2024 - $642)			465				682
Federal Home Loan Bank stock, at cost			791				1,256
Loans and leases held for investment			853,018				823,039
Less allowance for credit losses on loans and leases			10,704				10,184
Net loans and leases held for investment			842,314				812,855
Premises and equipment, net of accumulated depreciation			26,284				24,803
Cash surrender value of bank-owned life insurance			17,378				17,056
Accrued interest receivable			3,916				3,588
Goodwill and core deposit intangible, net			7,435				7,484
Other real estate owned			256				1,509
Other assets			9,474				11,022
Total assets		$	1,154,785			$	1,101,086
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing		$	153,809			$	155,945
Interest-bearing			874,153				816,612
Total deposits			1,027,962				972,557
Accrued interest expense			2,526				1,751
Other liabilities			7,704				7,282
Short-term borrowings			-				10,000
Long-term borrowings			10,945				10,872
Total liabilities			1,049,137				1,002,462
Shareholders' equity:
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,947,303 and     7,840,348 shares issued, respectively; 5,699,696 and 5,696,171 shares outstanding,    respectively			79				78
Additional paid-in capital			16,005				15,540
Accumulated other comprehensive loss, net of tax			(780)				(4,344)
Retained earnings			121,249				116,865
Less treasury stock: 2,247,607 and 2,144,177 shares at cost, respectively			(30,905)				(29,515)
Total shareholders' equity			105,648				98,624
Total liabilities and shareholders' equity		$	1,154,785			$	1,101,086

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2025				2024				2025				2024
		(Unaudited)				(Unaudited)				(Unaudited)
Interest income:
Interest and fees on loans		$	13,203			$	12,480			$	51,846			$	51,469
Interest on investment securities			1,623				1,306				5,761				4,400
Interest on deposits in banks			361				478				1,502				1,956
Other			75				156				306				435
Total interest income			15,262				14,420				59,415				58,260
Interest expense:
Interest on deposits			5,542				5,531				20,904				21,549
Interest on borrowings			297				141				1,053				562
Total interest expense			5,839				5,672				21,957				22,111
Net interest income			9,423				8,748				37,458				36,149
Provision for credit losses			220				470				4,031				622
Net interest income after provision for credit losses			9,203				8,278				33,427				35,527
Non-interest income:
Service and other charges on deposit accounts			285				323				1,140				1,232
Lease income			267				263				1,082				1,033
Other income, net			443				396				1,357				1,318
Total non-interest income			995				982				3,579				3,583
Non-interest expense:
Salaries and employee benefits			3,833				3,645				15,273				15,460
Net occupancy and equipment			997				955				3,796				3,761
Computer services			443				351				1,707				1,687
Insurance expense and assessments			311				357				1,409				1,510
Fees for professional services			301				180				1,349				1,184
Other expense			1,386				1,459				5,536				4,754
Total non-interest expense			7,271				6,947				29,070				28,356
Income before income taxes			2,927				2,313				7,936				10,754
Provision for income taxes			798				599				1,944				2,584
Net income		$	2,129			$	1,714			$	5,992			$	8,170
Basic net income per share		$	0.37			$	0.30			$	1.03			$	1.40
Diluted net income per share		$	0.36			$	0.29			$	1.00			$	1.33
Dividends per share		$	0.07			$	0.07			$	0.28			$	0.22

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.

	December 31,  2025				December 31,  2024
	(Dollars in Thousands)
	(Unaudited)				(Unaudited)
Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements:
Cash and cash equivalents	$	73,547			$	47,216
Federal funds sold and securities purchased under reverse repurchase agreements		4,850				5,727
Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements		78,397				52,943
Liquidity from pledgable investment securities:
Investment securities available-for sale, at fair value		168,075				167,888
Investment securities held-to-maturity, at amortized cost		465				682
Less: securities pledged		(58,497)				(72,110)
Less: estimated collateral value discounts		(10,671)				(10,164)
Total liquidity from pledgable investment securities		99,372				86,296
Liquidity from unused lendable collateral (loans) at FHLB		30,504				45,388
Liquidity from unused lendable collateral (loans and securities) at FRB		210,921				165,061
Unsecured lines of credit with banks		48,000				48,000
Total readily available liquidity	$	467,194			$	397,688

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.

				Quarter Ended										Year Ended
				2025								2024		2025		2024
				December 31,		September 30,		June 30,		March   31,		December 31,		December 31,		December 31,
				(Dollars in Thousands)
				(Unaudited Reconciliation)
Net income				$2,129		$1,936		$155		$1,772		$1,714		$5,992		$8,170
Add: Provision for income taxes				798		583		9		554		599		1,944		2,584
Add: Provision for credit losses				220		566		2,717		528		470		4,031		622
Pre-tax pre-provision net revenue				$3,147		$3,085		$2,881		$2,854		$2,783		$11,967		$11,376
Average assets				$1,145,476		$1,130,259		$1,122,342		$1,087,338		$1,086,071		$1,121,537		$1,074,198
PPNR as a percentage of average assets (annualized)				1.09 %		1.08 %		1.03 %		1.06 %		1.02 %		1.07 %		1.06 %

Tangible Balances and Measures

In addition to capital ratios defined by GAAP and banking regulators, the Company utilizes various tangible common equity measures when evaluating capital utilization and adequacy. These measures, which are presented in the financial tables in this press release, may also include calculations of tangible assets. As defined by the Company, tangible common equity represents shareholders' equity less goodwill and identifiable intangible assets, while tangible assets represent total assets less goodwill and identifiable intangible assets.

Management believes that the measures of tangible equity are important because they reflect the level of capital available to withstand unexpected market conditions. In addition, presentation of these measures allows readers to compare certain aspects of the Company's capitalization to other organizations. In management's experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets that typically result from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these measures, management believes that there are no comparable GAAP financial measures to the tangible common equity ratios that the Company utilizes. Despite the importance of these measures to the Company, there are no standardized definitions for the measures, and, therefore, the Company's calculations may not be comparable with those of other organizations. In addition, there may be limits to the usefulness of these measures to investors. Accordingly, management encourages readers to consider the Company's consolidated financial statements in their entirety and not to rely on any single financial measure. The table below reconciles the Company's calculations of these measures to amounts reported in accordance with GAAP.

				Quarter Ended										Year Ended
				2025								2024		2025		2024
				December 31,		September 30,		June 30,		March   31,		December 31,		December 31,		December 31,
				(Dollars in Thousands, Except Per Share Data)
				(Unaudited Reconciliation)
TANGIBLE BALANCES
Total assets				$1,154,785		$11,147,175		$1,143,379		$1,126,967		$1,101,086
Less: Goodwill				7,435		7,435		7,435		7,435		7,435
Less: Core deposit intangible				—		—		12		30		49
Tangible assets		(a)		$1,147,350		$11,139,740		$1,135,932		$1,119,502		$1,093,602
Total shareholders' equity				$105,648		$104,238		$101,892		$101,231		$98,624
Less: Goodwill				7,435		7,435		7,435		7,435		7,435
Less: Core deposit intangible				—		—		12		30		49
Tangible common equity		(b)		$98,213		$96,803		$94,445		$93,766		$91,140
Average shareholders' equity				$105,067		$102,737		$101,323		$99,734		$98,618		$102,232		$94,750
Less: Average goodwill				7,435		7,435		7,435		7,435		7,435		7,435		7,435
Less: Average core deposit intangible				—		4		21		39		58		16		101
Average tangible shareholders' equity		(c)		$97,632		$95,298		$93,867		$92,260		$91,125		$94,781		$87,214
Net income		(d)		$2,129		$1,936		$155		$1,772		$1,714		$5,992		$8,170
Common shares outstanding (in thousands)		(e)		5,700		5,765		5,755		5,739		5,696
TANGIBLE MEASURES
Tangible book value per common share		(b)/(e)		$17.23		$16.79		$16.41		$16.34		$16.00
Tangible common equity to tangible assets		(b)/(a)		8.56 %		8.49 %		8.31 %		8.38 %		8.33 %
Return on average tangible common equity (annualized)		(1)		8.65 %		8.06 %		0.66 %		7.79 %		7.49 %		6.32 %		9.37 %

(1)	Calculation of Return on average tangible common equity (annualized) = ((net income (d) / number of days in period) * number of days in year) / average tangible shareholders' equity (c)

 

Contact:	Thomas S. Elley
	205-582-1200

 

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SOURCE First US Bancshares, Inc.

FAQ

What did First US Bancshares (FUSB) report for 4Q2025 net income and EPS?

FUSB reported $2.1 million net income and $0.36 diluted EPS for 4Q2025. According to the company, this represents a 10% sequential increase and a 24% rise versus 4Q2024, reflecting improved credit metrics and stable core revenue.

How did First US Bancshares' full-year 2025 net income compare to 2024 (FUSB)?

Full-year 2025 net income was $6.0 million, down from $8.2 million in 2024. According to the company, higher provisions and prior-year comparatives drove the decline despite quarterly recovery in late 2025.

What changes occurred in First US Bancshares' asset quality in 4Q2025 (FUSB)?

Asset quality improved: nonperforming assets fell to 0.14% of total assets in 4Q2025. According to the company, net charge-offs and nonperforming assets decreased materially as previously identified credit issues were substantially resolved.

How did First US Bancshares' loan and deposit balances move in 4Q2025 (FUSB)?

Total loans decreased to $853.0 million while deposits rose to $1.028 billion at 12/31/2025. According to the company, loan shifts reflected project payoffs and seasonality; deposit growth included wholesale brokered CDs tied to hedging.

What drove First US Bancshares' higher provision for credit losses in 2025 (FUSB)?

The 2025 provision totaled $4.0 million, largely from a $2.7 million charge in 2Q2025. According to the company, the increase reflected growth and elevated charge-offs in the indirect consumer portfolio and allowances on two commercial loans.