First US Bancshares, Inc. Reports Second Quarter 2025 Results
First US Bancshares (NASDAQ:FUSB) reported Q2 2025 net income of $0.2 million ($0.03 per diluted share), down significantly from $1.8 million in Q1 2025 and $2.1 million in Q2 2024. The decline was primarily due to a substantial $2.7 million provision for credit losses.
Key metrics include: Net interest margin increased to 3.59% (up 6 basis points from Q1), total loans grew by 2.7% to $871.4 million, and total deposits increased by 2.6% to $986.8 million. The company's loan growth was primarily driven by a $25.1 million increase in consumer indirect loans and $12.4 million growth in multi-family residential real estate.
Asset quality metrics showed some deterioration with net charge-offs increasing to 0.79% of average loans in Q2 2025, compared to 0.13% in Q1 2025, primarily due to a $1.2 million partial charge-off of one commercial loan and increased indirect portfolio losses.
First US Bancshares (NASDAQ:FUSB) ha riportato un utile netto per il secondo trimestre 2025 di 0,2 milioni di dollari (0,03 dollari per azione diluita), in forte calo rispetto a 1,8 milioni nel primo trimestre 2025 e 2,1 milioni nel secondo trimestre 2024. Il calo è stato principalmente causato da una consistente rettifica per perdite su crediti di 2,7 milioni di dollari.
I principali indicatori mostrano: margine di interesse netto aumentato al 3,59% (in crescita di 6 punti base rispetto al primo trimestre), i prestiti totali sono cresciuti del 2,7% raggiungendo 871,4 milioni di dollari e i depositi totali sono aumentati del 2,6% a 986,8 milioni di dollari. La crescita dei prestiti è stata trainata principalmente da un incremento di 25,1 milioni di dollari nei prestiti indiretti al consumo e da una crescita di 12,4 milioni di dollari nel settore immobiliare residenziale multifamiliare.
Gli indicatori di qualità degli attivi hanno mostrato un leggero peggioramento con le perdite nette su crediti salite allo 0,79% sui prestiti medi nel secondo trimestre 2025, rispetto allo 0,13% del primo trimestre 2025, principalmente a causa di una parziale svalutazione di 1,2 milioni di dollari su un prestito commerciale e dell’aumento delle perdite nel portafoglio indiretto.
First US Bancshares (NASDAQ:FUSB) reportó un ingreso neto en el segundo trimestre de 2025 de 0,2 millones de dólares (0,03 dólares por acción diluida), una caída significativa respecto a los 1,8 millones en el primer trimestre de 2025 y 2,1 millones en el segundo trimestre de 2024. La disminución se debió principalmente a una provisión sustancial para pérdidas crediticias de 2,7 millones de dólares.
Las métricas clave incluyen: el margen neto de interés aumentó a 3,59% (6 puntos básicos más que en el primer trimestre), los préstamos totales crecieron un 2,7% hasta 871,4 millones de dólares y los depósitos totales aumentaron un 2,6% hasta 986,8 millones de dólares. El crecimiento de los préstamos de la compañía fue impulsado principalmente por un aumento de 25,1 millones de dólares en préstamos indirectos al consumidor y un crecimiento de 12,4 millones de dólares en bienes raíces residenciales multifamiliares.
Las métricas de calidad de activos mostraron cierto deterioro con las cancelaciones netas aumentando a 0,79% de los préstamos promedio en el segundo trimestre de 2025, comparado con 0,13% en el primer trimestre de 2025, principalmente debido a una cancelación parcial de 1,2 millones de dólares de un préstamo comercial y al aumento de pérdidas en la cartera indirecta.
First US Bancshares (NASDAQ:FUSB)는 2025년 2분기 순이익이 0.2백만 달러(희석 주당 0.03달러)로 2025년 1분기 1.8백만 달러 및 2024년 2분기 2.1백만 달러에 비해 크게 감소했다고 보고했습니다. 이 감소는 주로 2.7백만 달러의 대손충당금 때문입니다.
주요 지표로는 순이자마진이 3.59%로 1분기 대비 6bp 상승, 총 대출금이 2.7% 증가하여 8억7,140만 달러, 총 예금은 2.6% 증가하여 9억8,680만 달러에 달했습니다. 회사의 대출 성장은 주로 소비자 간접대출이 2,510만 달러 증가하고 다세대 주거용 부동산 대출이 1,240만 달러 증가한 데 기인합니다.
자산 건전성 지표는 일부 악화를 보였으며, 2025년 2분기 순대손비용이 평균 대출의 0.79%로 2025년 1분기 0.13%에서 증가했는데, 이는 주로 한 건의 상업용 대출에 대한 120만 달러 부분 대손상각과 간접 포트폴리오 손실 증가 때문입니다.
First US Bancshares (NASDAQ:FUSB) a annoncé un bénéfice net au deuxième trimestre 2025 de 0,2 million de dollars (0,03 dollar par action diluée), en forte baisse par rapport à 1,8 million au premier trimestre 2025 et 2,1 millions au deuxième trimestre 2024. Cette baisse est principalement due à une importante provision pour pertes sur crédits de 2,7 millions de dollars.
Les indicateurs clés incluent : la marge nette d'intérêt a augmenté à 3,59% (en hausse de 6 points de base par rapport au premier trimestre), les prêts totaux ont augmenté de 2,7% pour atteindre 871,4 millions de dollars et les dépôts totaux ont progressé de 2,6% à 986,8 millions de dollars. La croissance des prêts de la société a été principalement alimentée par une augmentation de 25,1 millions de dollars des prêts indirects à la consommation et une croissance de 12,4 millions de dollars dans l'immobilier résidentiel multifamilial.
Les indicateurs de qualité des actifs ont montré une certaine détérioration avec une augmentation des pertes nettes sur créances à 0,79% des prêts moyens au deuxième trimestre 2025, contre 0,13% au premier trimestre 2025, principalement en raison d'une radiation partielle de 1,2 million de dollars sur un prêt commercial et d'une augmentation des pertes dans le portefeuille indirect.
First US Bancshares (NASDAQ:FUSB) meldete für das zweite Quartal 2025 einen Nettogewinn von 0,2 Millionen US-Dollar (0,03 US-Dollar je verwässerter Aktie), was einen deutlichen Rückgang gegenüber 1,8 Millionen im ersten Quartal 2025 und 2,1 Millionen im zweiten Quartal 2024 darstellt. Der Rückgang ist hauptsächlich auf eine erhebliche Rückstellung für Kreditausfälle in Höhe von 2,7 Millionen US-Dollar zurückzuführen.
Wichtige Kennzahlen umfassen: Die Nettozinsmarge stieg auf 3,59% (ein Anstieg um 6 Basispunkte gegenüber dem ersten Quartal), die Gesamtkredite wuchsen um 2,7% auf 871,4 Millionen US-Dollar, und die Gesamteinlagen stiegen um 2,6% auf 986,8 Millionen US-Dollar. Das Kreditwachstum des Unternehmens wurde hauptsächlich durch einen Anstieg der indirekten Verbraucherkredite um 25,1 Millionen US-Dollar und ein Wachstum im Bereich Mehrfamilienwohnimmobilien um 12,4 Millionen US-Dollar getrieben.
Die Kennzahlen zur Vermögensqualität zeigten eine Verschlechterung, da die netto abgeschriebenen Forderungen auf 0,79% der durchschnittlichen Kredite im zweiten Quartal 2025 anstiegen, verglichen mit 0,13% im ersten Quartal 2025, hauptsächlich aufgrund einer teilweisen Abschreibung von 1,2 Millionen US-Dollar auf einen gewerblichen Kredit und gestiegener Verluste im indirekten Portfolio.
- Net interest margin expanded by 6 basis points to 3.59% quarter-over-quarter
- Total loans grew by 2.7% during Q2 2025, with 5.9% year-to-date growth
- Total deposits increased by $24.9 million (2.6%) during Q2 2025
- Pre-tax pre-provision net revenue increased by 0.9% compared to Q1 2025
- High credit quality in indirect lending with weighted average credit score of 798 for new loans
- Net income dropped to $0.2 million from $1.8 million in Q1 2025
- Significant increase in provision for credit losses to $2.7 million in Q2 2025
- Net charge-offs increased to 0.79% from 0.13% in previous quarter
- $1.2 million partial charge-off of one commercial loan in Q2 2025
- Core deposits decreased to 82.7% of total deposits from 86.1% in December 2024
Insights
FUSB reports significant earnings decline due to increased credit loss provisions, though net interest margin and loan growth show positive signs.
First US Bancshares reported a substantial drop in earnings for Q2 2025, with net income falling to just
The bank recorded a
Despite the earnings pressure, several underlying metrics showed improvement. The bank's loan portfolio grew by
Net interest margin improved to
The bank's asset quality metrics showed mixed signals. While nonperforming assets decreased to
First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of
The table below summarizes selected financial data for each of the periods presented.
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
June | March | December | September | June | June | June | ||||||||||||||||||||||
Results of Operations: | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||
Interest income | $ | 14,854 | $ | 14,018 | $ | 14,420 | $ | 15,017 | $ | 14,546 | $ | 28,872 | $ | 28,823 | ||||||||||||||
Interest expense | 5,378 | 5,121 | 5,672 | 5,832 | 5,370 | 10,499 | 10,607 | |||||||||||||||||||||
Net interest income | 9,476 | 8,897 | 8,748 | 9,185 | 9,176 | 18,373 | 18,216 | |||||||||||||||||||||
Provision for credit losses | 2,717 | 528 | 470 | 152 | - | 3,245 | — | |||||||||||||||||||||
Net interest income after provision for credit losses | 6,759 | 8,369 | 8,278 | 9,033 | 9,176 | 15,128 | 18,216 | |||||||||||||||||||||
Non-interest income | 849 | 875 | 982 | 901 | 835 | 1,724 | 1,700 | |||||||||||||||||||||
Non-interest expense | 7,444 | 6,918 | 6,947 | 6,990 | 7,272 | 14,362 | 14,419 | |||||||||||||||||||||
Income before income taxes | 164 | 2,326 | 2,313 | 2,944 | 2,739 | 2,490 | 5,497 | |||||||||||||||||||||
Provision for income taxes | 9 | 554 | 599 | 722 | 612 | 563 | 1,263 | |||||||||||||||||||||
Net income | $ | 155 | $ | 1,772 | $ | 1,714 | $ | 2,222 | $ | 2,127 | $ | 1,927 | $ | 4,234 | ||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||
Basic net income per share | $ | 0.03 | $ | 0.30 | $ | 0.30 | $ | 0.38 | $ | 0.36 | $ | 0.33 | $ | 0.72 | ||||||||||||||
Diluted net income per share | $ | 0.03 | $ | 0.29 | $ | 0.29 | $ | 0.36 | $ | 0.34 | $ | 0.32 | $ | 0.68 | ||||||||||||||
Dividends declared | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.05 | $ | 0.05 | $ | 0.14 | $ | 0.10 | ||||||||||||||
Key Measures (Period End): | ||||||||||||||||||||||||||||
Total assets | $ | 1,143,379 | $ | 1,126,967 | $ | 1,101,086 | $ | 1,100,235 | $ | 1,083,313 | ||||||||||||||||||
Tangible assets (1) | 1,135,932 | 1,119,502 | 1,093,602 | 1,092,733 | 1,075,781 | |||||||||||||||||||||||
Total loans | 871,431 | 848,335 | 823,039 | 803,308 | 819,126 | |||||||||||||||||||||||
Allowance for credit losses ("ACL") on loans and | 11,388 | 10,405 | 10,184 | 10,116 | 10,227 | |||||||||||||||||||||||
Investment securities, net | 157,137 | 161,946 | 168,570 | 145,044 | 144,876 | |||||||||||||||||||||||
Total deposits | 986,846 | 961,952 | 972,557 | 981,149 | 954,455 | |||||||||||||||||||||||
Short-term borrowings | 35,000 | 45,000 | 10,000 | - | 15,000 | |||||||||||||||||||||||
Long-term borrowings | 10,909 | 10,890 | 10,872 | 10,854 | 10,836 | |||||||||||||||||||||||
Total shareholders' equity | 101,892 | 101,231 | 98,624 | 98,491 | 93,836 | |||||||||||||||||||||||
Tangible common equity (1) | 94,445 | 93,766 | 91,140 | 90,989 | 86,304 | |||||||||||||||||||||||
Book value per common share | 17.70 | 17.64 | 17.31 | 17.23 | 16.34 | |||||||||||||||||||||||
Tangible book value per common share (1) | 16.41 | 16.34 | 16.00 | 15.92 | 15.03 | |||||||||||||||||||||||
Key Ratios: | ||||||||||||||||||||||||||||
Return on average assets (annualized) | 0.06 | % | 0.66 | % | 0.63 | % | 0.82 | % | 0.80 | % | 0.35 | % | 0.80 | % | ||||||||||||||
Return on average common equity (annualized) | 0.61 | % | 7.21 | % | 6.92 | % | 9.21 | % | 9.23 | % | 3.86 | % | 9.24 | % | ||||||||||||||
Return on average tangible common equity | 0.66 | % | 7.79 | % | 7.49 | % | 9.99 | % | 10.05 | % | 4.17 | % | 10.06 | % | ||||||||||||||
Pre-tax pre-provision net revenue to average assets | 1.03 | % | 1.06 | % | 1.02 | % | 1.14 | % | 1.03 | % | 1.05 | % | 1.04 | % | ||||||||||||||
Net interest margin | 3.59 | % | 3.53 | % | 3.41 | % | 3.60 | % | 3.69 | % | 3.56 | % | 3.67 | % | ||||||||||||||
Efficiency ratio (2) | 72.1 | % | 70.8 | % | 71.4 | % | 69.3 | % | 72.6 | % | 71.5 | % | 72.4 | % | ||||||||||||||
Total loans to deposits | 88.3 | % | 88.2 | % | 84.6 | % | 81.9 | % | 85.8 | % | ||||||||||||||||||
Total loans to assets | 76.2 | % | 75.3 | % | 74.7 | % | 73.0 | % | 75.6 | % | ||||||||||||||||||
Common equity to total assets | 8.91 | % | 8.98 | % | 8.96 | % | 8.95 | % | 8.66 | % | ||||||||||||||||||
Tangible common equity to tangible assets (1) | 8.31 | % | 8.38 | % | 8.33 | % | 8.33 | % | 8.02 | % | ||||||||||||||||||
Tier 1 leverage ratio (3) | 9.23 | % | 9.55 | % | 9.50 | % | 9.49 | % | 9.46 | % | ||||||||||||||||||
ACL on loans and leases as % of total loans | 1.31 | % | 1.23 | % | 1.24 | % | 1.26 | % | 1.25 | % | ||||||||||||||||||
Nonperforming assets as % of total assets | 0.33 | % | 0.44 | % | 0.50 | % | 0.60 | % | 0.27 | % | ||||||||||||||||||
Net charge-offs as a percentage of average loans | 0.79 | % | 0.13 | % | 0.24 | % | 0.12 | % | 0.10 | % | 0.47 | % | 0.10 | % | ||||||||||||||
(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
"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
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 | |||||||||
June | March | December | September | June | ||||||
(Dollars in Thousands) | ||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Real estate loans: | ||||||||||
Construction, land development and other land loans | ||||||||||
Secured by 1-4 family residential properties | 67,587 | 68,523 | 69,999 | 70,067 | 70,272 | |||||
Secured by multi-family residential properties | 118,807 | 106,374 | 101,057 | 100,627 | 97,527 | |||||
Secured by non-residential commercial real estate | 215,035 | 214,065 | 227,751 | 224,611 | 218,386 | |||||
Commercial and industrial loans ("C&I") | 40,986 | 45,166 | 44,238 | 44,872 | 46,249 | |||||
Consumer loans: | ||||||||||
Direct | 4,836 | 4,610 | 4,774 | 5,018 | 5,272 | |||||
Indirect | 376,079 | 351,025 | 309,683 | 305,015 | 309,237 | |||||
Total loans and leases held for investment | ||||||||||
Allowance for credit losses on loans and leases | 11,388 | 10,405 | 10,184 | 10,116 | 10,227 | |||||
Net loans and leases held for investment | ||||||||||
Total loans increased by
Net Interest Income and Margin – Net interest income in 2Q2025 increased by
Provision for Credit Losses – During 2Q2025, the Company recorded a provision for credit losses of
Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled
Deposits –Total deposits increased by
Short-term Borrowings – As of June 30, 2025, the Company had
Deployment of Funds – As of June 30, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling
Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled
Non-interest Income – Non-interest income remained relatively consistent, totaling
Non-interest Expense – Non-interest expense totaled
Shareholders' Equity – As of June 30, 2025, shareholders' equity totaled
Cash Dividend – In 2Q2025, the Company declared a cash dividend of
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
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
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
About First US Bancshares, Inc.
First US Bancshares, Inc. (the "Company") is a bank holding company that operates banking offices in
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
FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN THREE MONTHS ENDED JUNE 30, 2025 AND 2024 (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
June 30, 2025 | June 30, 2024 | |||||||||||||||||||||||
Average | Interest | Annualized | Average | Interest | Annualized | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 857,707 | $ | 12,989 | 6.07 | % | $ | 819,590 | $ | 12,930 | 6.35 | % | ||||||||||||
Investment securities | 154,576 | 1,335 | 3.46 | % | 143,112 | 1,108 | 3.11 | % | ||||||||||||||||
Federal Home Loan Bank stock | 1,320 | 26 | 7.90 | % | 969 | 19 | 7.89 | % | ||||||||||||||||
Federal funds sold and securities purchased under | 4,850 | 53 | 4.38 | % | 4,850 | 66 | 5.47 | % | ||||||||||||||||
Interest-bearing deposits in banks | 40,710 | 451 | 4.44 | % | 30,965 | 423 | 5.49 | % | ||||||||||||||||
Total interest-earning assets | 1,059,163 | 14,854 | 5.63 | % | 999,486 | 14,546 | 5.85 | % | ||||||||||||||||
Noninterest-earning assets | 63,179 | 65,794 | ||||||||||||||||||||||
Total assets | $ | 1,122,342 | $ | 1,065,280 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 203,734 | 438 | 0.86 | % | $ | 203,784 | 424 | 0.84 | % | ||||||||||||||
Money market/savings deposits | 273,185 | 1,743 | 2.56 | % | 247,211 | 1,627 | 2.65 | % | ||||||||||||||||
Time deposits | 356,602 | 2,944 | 3.31 | % | 347,010 | 3,159 | 3.66 | % | ||||||||||||||||
Total interest-bearing deposits | 833,521 | 5,125 | 2.47 | % | 798,005 | 5,210 | 2.63 | % | ||||||||||||||||
Noninterest-bearing demand deposits | 155,432 | — | — | 151,117 | — | — | ||||||||||||||||||
Total deposits | 988,953 | 5,125 | 2.08 | % | 949,122 | 5,210 | 2.21 | % | ||||||||||||||||
Borrowings | 22,966 | 253 | 4.42 | % | 14,838 | 160 | 4.34 | % | ||||||||||||||||
Total funding liabilities | 1,011,919 | 5,378 | 2.13 | % | 963,960 | 5,370 | 2.24 | % | ||||||||||||||||
Other noninterest-bearing liabilities | 9,100 | 8,638 | ||||||||||||||||||||||
Shareholders' equity | 101,323 | 92,682 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,122,342 | $ | 1,065,280 | ||||||||||||||||||||
Net interest income | $ | 9,476 | $ | 9,176 | ||||||||||||||||||||
Net interest margin | 3.59 | % | 3.69 | % | ||||||||||||||||||||
FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2025 | June 30, 2024 | |||||||||||||||||||||||
Average | Interest | Annualized Yield/ | Average | Interest | Annualized Yield/ | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 841,210 | $ | 25,230 | 6.05 | % | $ | 820,787 | $ | 25,783 | 6.32 | % | ||||||||||||
Investment securities | 160,377 | 2,747 | 3.45 | % | 138,915 | 1,973 | 2.86 | % | ||||||||||||||||
Federal Home Loan Bank stock | 1,331 | 50 | 7.58 | % | 941 | 37 | 7.91 | % | ||||||||||||||||
Federal funds sold and securities purchased under | 4,850 | 106 | 4.41 | % | 5,729 | 155 | 5.44 | % | ||||||||||||||||
Interest-bearing deposits in banks | 33,505 | 739 | 4.45 | % | 31,985 | 875 | 5.50 | % | ||||||||||||||||
Total interest-earning assets | 1,041,273 | 28,872 | 5.59 | % | 998,357 | 28,823 | 5.81 | % | ||||||||||||||||
Noninterest-earning assets | 63,664 | 66,808 | ||||||||||||||||||||||
Total assets | $ | 1,104,937 | $ | 1,065,165 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand deposits | $ | 207,909 | 930 | 0.90 | % | $ | 202,522 | 676 | 0.67 | % | ||||||||||||||
Money market/savings deposits | 265,160 | 3,287 | 2.50 | % | 253,816 | 3,511 | 2.78 | % | ||||||||||||||||
Time deposits | 343,494 | 5,777 | 3.39 | % | 341,916 | 6,122 | 3.60 | % | ||||||||||||||||
Total interest-bearing deposits | 816,563 | 9,994 | 2.47 | % | 798,254 | 10,309 | 2.60 | % | ||||||||||||||||
Noninterest-bearing demand deposits | 155,363 | — | — | 150,380 | — | — | ||||||||||||||||||
Total deposits | 971,926 | 9,994 | 2.07 | % | 948,634 | 10,309 | 2.19 | % | ||||||||||||||||
Borrowings | 23,184 | 505 | 4.39 | % | 14,692 | 298 | 4.08 | % | ||||||||||||||||
Total funding liabilities | 995,110 | 10,499 | 2.13 | % | 963,326 | 10,607 | 2.21 | % | ||||||||||||||||
Other noninterest-bearing liabilities | 9,294 | 9,675 | ||||||||||||||||||||||
Shareholders' equity | 100,533 | 92,164 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,104,937 | $ | 1,065,165 | ||||||||||||||||||||
Net interest income | $ | 18,373 | $ | 18,216 | ||||||||||||||||||||
Net interest margin | 3.56 | % | 3.67 | % | ||||||||||||||||||||
FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Share and Per Share Data) | ||||||||
June 30, | December 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 9,380 | $ | 10,633 | ||||
Interest-bearing deposits in banks | 44,575 | 36,583 | ||||||
Total cash and cash equivalents | 53,955 | 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 | 156,576 | 167,888 | ||||||
Investment securities held-to-maturity, at amortized cost, net of allowance for credit | 561 | 682 | ||||||
Federal Home Loan Bank stock, at cost | 1,741 | 1,256 | ||||||
Loans and leases held for investment | 871,431 | 823,039 | ||||||
Less allowance for credit losses on loans and leases | 11,388 | 10,184 | ||||||
Net loans and leases held for investment | 860,043 | 812,855 | ||||||
Premises and equipment, net of accumulated depreciation | 26,479 | 24,803 | ||||||
Cash surrender value of bank-owned life insurance | 17,198 | 17,056 | ||||||
Accrued interest receivable | 3,867 | 3,588 | ||||||
Goodwill and core deposit intangible, net | 7,447 | 7,484 | ||||||
Other real estate owned | 1,298 | 1,509 | ||||||
Other assets | 9,364 | 11,022 | ||||||
Total assets | $ | 1,143,379 | $ | 1,101,086 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 150,894 | $ | 155,945 | ||||
Interest-bearing | 835,952 | 816,612 | ||||||
Total deposits | 986,846 | 972,557 | ||||||
Accrued interest expense | 1,981 | 1,751 | ||||||
Other liabilities | 6,751 | 7,282 | ||||||
Short-term borrowings | 35,000 | 10,000 | ||||||
Long-term borrowings | 10,909 | 10,872 | ||||||
Total liabilities | 1,041,487 | 1,002,462 | ||||||
Shareholders' equity: | ||||||||
Common stock, par value | 79 | 78 | ||||||
Additional paid-in capital | 15,619 | 15,540 | ||||||
Accumulated other comprehensive loss, net of tax | (2,065) | (4,344) | ||||||
Retained earnings | 117,988 | 116,865 | ||||||
Less treasury stock: 2,165,085 and 2,144,177 shares at cost, respectively | (29,729) | (29,515) | ||||||
Total shareholders' equity | 101,892 | 98,624 | ||||||
Total liabilities and shareholders' equity | $ | 1,143,379 | $ | 1,101,086 | ||||
FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 12,989 | $ | 12,930 | $ | 25,230 | $ | 25,783 | ||||||||
Interest on investment securities | 1,335 | 1,108 | 2,747 | 1,973 | ||||||||||||
Interest on deposits in banks | 451 | 423 | 739 | 875 | ||||||||||||
Other | 79 | 85 | 156 | 192 | ||||||||||||
Total interest income | 14,854 | 14,546 | 28,872 | 28,823 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 5,125 | 5,210 | 9,994 | 10,309 | ||||||||||||
Interest on borrowings | 253 | 160 | 505 | 298 | ||||||||||||
Total interest expense | 5,378 | 5,370 | 10,499 | 10,607 | ||||||||||||
Net interest income | 9,476 | 9,176 | 18,373 | 18,216 | ||||||||||||
Provision for credit losses | 2,717 | — | 3,245 | — | ||||||||||||
Net interest income after provision for credit losses | 6,759 | 9,176 | 15,128 | 18,216 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service and other charges on deposit accounts | 278 | 298 | 566 | 597 | ||||||||||||
Lease income | 269 | 253 | 553 | 510 | ||||||||||||
Other income, net | 302 | 284 | 605 | 593 | ||||||||||||
Total non-interest income | 849 | 835 | 1,724 | 1,700 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 3,945 | 3,890 | 7,681 | 7,978 | ||||||||||||
Net occupancy and equipment | 937 | 954 | 1,812 | 1,848 | ||||||||||||
Computer services | 421 | 444 | 833 | 887 | ||||||||||||
Insurance expense and assessments | 366 | 414 | 750 | 805 | ||||||||||||
Fees for professional services | 470 | 364 | 685 | 705 | ||||||||||||
Other expense | 1,305 | 1,206 | 2,601 | 2,196 | ||||||||||||
Total non-interest expense | 7,444 | 7,272 | 14,362 | 14,419 | ||||||||||||
Income before income taxes | 164 | 2,739 | 2,490 | 5,497 | ||||||||||||
Provision for income taxes | 9 | 612 | 563 | 1,263 | ||||||||||||
Net income | $ | 155 | $ | 2,127 | $ | 1,927 | $ | 4,234 | ||||||||
Basic net income per share | $ | 0.03 | $ | 0.36 | $ | 0.33 | $ | 0.72 | ||||||||
Diluted net income per share | $ | 0.03 | $ | 0.34 | $ | 0.32 | $ | 0.68 | ||||||||
Dividends per share | $ | 0.07 | $ | 0.05 | $ | 0.14 | $ | 0.10 | ||||||||
Non-GAAP Financial Measures
In addition to the financial results presented in this press release that have been prepared in accordance with
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.
June 30, | December 31, | ||||||
(Dollars in Thousands) | |||||||
(Unaudited) | (Unaudited) | ||||||
Liquidity from cash, federal funds sold and securities purchased under reverse repurchase | |||||||
Cash and cash equivalents | $ | 53,955 | $ | 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 | 58,805 | 52,943 | |||||
Liquidity from pledgable investment securities: | |||||||
Investment securities available-for sale, at fair value | 156,576 | 167,888 | |||||
Investment securities held-to-maturity, at amortized cost | 561 | 682 | |||||
Less: securities pledged | (62,626) | (72,110) | |||||
Less: estimated collateral value discounts | (10,311) | (10,164) | |||||
Total liquidity from pledgable investment securities | 84,200 | 86,296 | |||||
Liquidity from unused lendable collateral (loans) at FHLB | 11,175 | 45,388 | |||||
Liquidity from unused lendable collateral (loans and securities) at FRB | 181,861 | 165,061 | |||||
Unsecured lines of credit with banks | 48,000 | 48,000 | |||||
Total readily available liquidity | $ | 384,041 | $ | 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 June 30, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was
Excluding wholesale brokered deposits, as of June 30, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately
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 | Six Months Ended | |||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||
June | March | December | September | June | June | June | ||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||
(Unaudited Reconciliation) | ||||||||||||||||||||||||||||||
Net income | $ | 155 | $ | 1,772 | $ | 1,714 | $ | 2,222 | $ | 2,127 | $ | 1,927 | $ | 4,234 | ||||||||||||||||
Add: Provision for income taxes | 9 | 554 | 599 | 722 | 612 | 563 | 1,263 | |||||||||||||||||||||||
Add: Provision for credit losses | 2,717 | 528 | 470 | 152 | — | 3,245 | — | |||||||||||||||||||||||
Pre-tax pre-provision net revenue | $ | 2,881 | $ | 2,854 | $ | 2,783 | $ | 3,096 | $ | 2,739 | $ | 5,735 | $ | 5,497 | ||||||||||||||||
Average assets | $ | 1,122,342 | $ | 1,087,338 | $ | 1,086,071 | $ | 1,080,198 | $ | 1,065,280 | $ | 1,104,937 | $ | 1,065,165 | ||||||||||||||||
PPNR as a percentage of average | 1.03 | % | 1.06 | % | 1.02 | % | 1.14 | % | 1.03 | % | 1.05 | % | 1.04 | % | ||||||||||||||||
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 | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
June | March | December | September | June | June | June | ||||||||||
(Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
(Unaudited Reconciliation) | ||||||||||||||||
TANGIBLE BALANCES | ||||||||||||||||
Total assets | ||||||||||||||||
Less: Goodwill | 7,435 | 7,435 | 7,435 | 7,435 | 7,435 | |||||||||||
Less: Core deposit intangible | 12 | 30 | 49 | 67 | 97 | |||||||||||
Tangible assets | (a) | |||||||||||||||
Total shareholders' equity | ||||||||||||||||
Less: Goodwill | 7,435 | 7,435 | 7,435 | 7,435 | 7,435 | |||||||||||
Less: Core deposit intangible | 12 | 30 | 49 | 67 | 97 | |||||||||||
Tangible common equity | (b) | |||||||||||||||
Average shareholders' equity | ||||||||||||||||
Less: Average goodwill | 7,435 | 7,435 | 7,435 | 7,435 | 7,435 | 7,435 | 7,435 | |||||||||
Less: Average core deposit intangible | 21 | 39 | 58 | 80 | 115 | 30 | 133 | |||||||||
Average tangible shareholders' equity | (c) | |||||||||||||||
Net income | (d) | |||||||||||||||
Common shares outstanding (in thousands) | (e) | 5,755 | 5,739 | 5,696 | 5,715 | 5,744 | ||||||||||
TANGIBLE MEASURES | ||||||||||||||||
Tangible book value per common share | (b)/(e) | |||||||||||||||
Tangible common equity to tangible assets | (b)/(a) | 8.31 % | 8.38 % | 8.33 % | 8.33 % | 8.02 % | ||||||||||
Return on average tangible common equity (annualized) | (1) | 0.66 % | 7.79 % | 7.49 % | 9.99 % | 10.05 % | 4.17 % | 10.06 % | ||||||||
(1) | Calculation of Return on average tangible common equity (annualized) = ((net income (d) / number of days in period) * number of days in year) / average tangible shareholders' equity (c) |
Contact: | Thomas S. Elley |
205-582-1200 |
View original content:https://www.prnewswire.com/news-releases/first-us-bancshares-inc-reports-second-quarter-2025-results-302517611.html
SOURCE First US Bancshares, Inc.
FAQ
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