First US Bancshares, Inc. Reports Second Quarter 2026 Results

Rhea-AI Summary

First US Bancshares (Nasdaq:FUSB) reported 2Q2026 net income of $1.8 million, or $0.31 per diluted share, versus $1.9 million ($0.33) in 1Q2026 and $0.2 million ($0.03) in 2Q2025. For the first half of 2026, net income was $3.7 million, or $0.64 per diluted share, up from $1.9 million, or $0.32, a year earlier, primarily due to lower provision for credit losses.

Net interest income in 2Q2026 was $9.5 million, with net interest margin of 3.56%, up from 3.37% in 1Q2026. Total loans rose 2.0% sequentially to $860.6 million, driven by construction and indirect consumer lending, while total deposits declined 3.9% to $998.0 million as the company allowed higher-cost deposits to run off. Core deposits represented 83.7% of total deposits.

Nonperforming assets were 0.17% of total assets, and the allowance for credit losses on loans and leases was 1.26% of total loans. The 2Q2026 provision for credit losses was $0.9 million, down sharply from $2.7 million in 2Q2025 but up from $0.3 million in 1Q2026. Book value per share was $18.88, and the quarterly dividend remained $0.07 per share.

Positive

• First-half 2026 net income $3.7 million vs. $1.9 million in 2025
• Diluted EPS $0.64 for first half 2026 vs. $0.32 in 2025
• Net interest margin 3.56% in 2Q2026 vs. 3.37% in 1Q2026
• Total loans up 2.0% QoQ to $860.6 million in 2Q2026
• Core deposits 83.7% of total deposits at June 30, 2026
• Net charge-offs ratio 0.27% for first half 2026 vs. 0.47% in 2025

Negative

• 2Q2026 net income $1.8 million vs. $1.9 million in 1Q2026
• Total deposits down $40.9 million (3.9%) in 2Q2026
• Provision for credit losses $0.9 million in 2Q2026 vs. $0.3 million in 1Q2026
• Nonperforming assets 0.17% of assets vs. 0.14% at December 31, 2025
• Net interest margin 3.46% for first half 2026 vs. 3.56% in 2025
• Loan yield 5.90% in 2Q2026 vs. 6.07% in 2Q2025

News Explained

June 30 funding included $20.1 million of brokered deposits that matured, alongside $63.8 million cash and $166.0 million securities.

The completed 2Q2026 results show a quarter-end funding shift: First US Bancshares had $997,956 thousand of deposits, down $40.9 million; $20.1 million of wholesale brokered time deposits matured without replacement, alongside declines in interest-bearing demand and time deposits.

The change was not uniform: noninterest-bearing demand deposits increased $0.7 million, while core deposits stood at $835.2 million, or 83.7% of total deposits.

At June 30, cash, federal funds sold and securities purchased under reverse repurchase agreements totaled $63.8 million; investment securities were separately reported at $166.0 million.

The quarter's $0.9 million provision for credit losses was attributed primarily to loan growth and changes in economic forecasts, rather than the specifically identified commercial-loan provisioning cited for 2Q2025.

The next quarterly report's Provision for credit losses and ACL on loans and leases line items provide the stated path for assessing whether the higher quarterly provision changes the reported credit-loss position.

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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.

		Quarter Ended																				Six Months Ended
		2026								2025												2026				2025
		June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
Results of Operations: (Dollars in Thousands)		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest income		$	14,657			$	14,940			$	15,262			$	15,281			$	14,854			$	29,597			$	28,872
Interest expense			5,157				5,725				5,839				5,619				5,378				10,882				10,499
Net interest income			9,500				9,215				9,423				9,662				9,476				18,715				18,373
Provision for credit losses			939				254				220				566				2,717				1,193				3,245
Net interest income after provision for credit losses			8,561				8,961				9,203				9,096				6,759				17,522				15,128
Non-interest income			1,318				840				995				860				849				2,158				1,724
Non-interest expense			7,643				7,341				7,271				7,437				7,444				14,984				14,362
Income before income taxes			2,236				2,460				2,927				2,519				164				4,696				2,490
Provision for income taxes			483				515				798				583				9				998				563
Net income		$	1,753			$	1,945			$	2,129			$	1,936			$	155			$	3,698			$	1,927
Per Share Data:
Basic net income per share		$	0.31			$	0.34			$	0.37			$	0.33			$	0.03			$	0.65			$	0.33
Diluted net income per share		$	0.31			$	0.33			$	0.36			$	0.32			$	0.03			$	0.64			$	0.32
Dividends declared		$	0.07			$	0.07			$	0.07			$	0.07			$	0.07			$	0.14			$	0.14
Key Measures (Period End):
Total assets		$	1,147,619			$	1,165,236			$	1,154,785			$	1,147,175			$	1,143,379
Tangible assets (1)			1,140,184				1,157,801				1,147,350				1,139,740				1,135,932
Total loans			860,635				843,697				853,018				867,520				871,431
Allowance for credit losses ("ACL") on loans and leases			10,882				10,536				10,704				10,700				11,388
Investment securities, net			165,959				181,545				168,540				164,493				157,137
Total deposits			997,956				1,038,849				1,027,962				1,002,472				986,846
Short-term borrowings			25,000				—				—				20,000				35,000
Long-term borrowings			10,982				10,963				10,945				10,927				10,909
Total shareholders' equity			104,285				104,634				105,648				104,238				101,892
Tangible common equity (1)			96,850				97,199				98,213				96,803				94,445
Book value per common share			18.88				18.67				18.53				18.08				17.70
Tangible book value per common share (1)			17.54				17.34				17.23				16.79				16.41
Common shares outstanding			5,523,209				5,604,123				5,699,696				5,765,137				5,755,064
Key Ratios:
Return on average assets (annualized)			0.62	%			0.67	%			0.74	%			0.68	%			0.06	%			0.65	%			0.35	%
Return on average common equity (annualized)			6.73	%			7.46	%			8.04	%			7.48	%			0.61	%			7.09	%			3.86	%
Return on average tangible common equity (annualized) (1)			7.24	%			8.02	%			8.65	%			8.06	%			0.66	%			7.63	%			4.17	%
Pre-tax pre-provision net revenue to average assets (annualized) (1)			1.12	%			0.94	%			1.09	%			1.08	%			1.03	%			1.03	%			1.05	%
Net interest margin			3.56	%			3.37	%			3.46	%			3.60	%			3.59	%			3.46	%			3.56	%
Efficiency ratio (2)			70.7	%			73.0	%			69.8	%			70.7	%			72.1	%			71.8	%			71.5	%
Total loans to deposits			86.2	%			81.2	%			83.0	%			86.5	%			88.3	%
Total loans to assets			75.0	%			72.4	%			73.9	%			75.6	%			76.2	%
Common equity to total assets			9.09	%			8.98	%			9.15	%			9.09	%			8.91	%
Tangible common equity to tangible assets (1)			8.49	%			8.40	%			8.56	%			8.49	%			8.31	%
Tier 1 leverage ratio (3)			9.16	%			8.85	%			9.03	%			9.19	%			9.23	%
ACL on loans and leases as % of total loans			1.26	%			1.25	%			1.25	%			1.23	%			1.31	%
Nonperforming assets as % of total assets			0.17	%			0.16	%			0.14	%			0.19	%			0.33	%
Net charge-offs as a percentage of average loans (annualized)			0.30	%			0.23	%			0.08	%			0.61	%			0.79	%			0.27	%			0.47	%

 

(1)	Refer to the Non-GAAP Financial Measures section for a reconciliation of this non-GAAP measure to a GAAP-amount.
(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 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.

		Quarter Ended
		2026				2025
		June 30,		March 31,		December 31,		September 30,		June 30,
		(Dollars in Thousands)
		(Unaudited)		(Unaudited)				(Unaudited)		(Unaudited)
Real estate loans:
Construction, land development and other land loans		$41,062		$27,236		$32,618		$38,560		$48,101
Secured by 1-4 family residential properties		63,093		65,460		66,996		67,620		67,587
Secured by multi-family residential properties		119,362		124,826		117,769		112,763		118,807
Secured by non-residential commercial real estate		181,480		189,408		200,699		211,400		215,035
Commercial and industrial loans ("C&I")		46,834		46,665		48,360		46,562		40,986
Consumer loans:
Direct		4,379		4,362		4,844		4,999		4,836
Indirect		404,425		385,740		381,732		385,616		376,079
Total loans and leases held for investment		860,635		843,697		853,018		867,520		871,431
ACL on loans and leases		10,882		10,536		10,704		10,700		11,388
Net loans and leases held for investment		$849,753		$833,161		$842,314		$856,820		$860,043

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.

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY
NET INTEREST MARGIN
THREE MONTHS ENDED JUNE 30, 2026 AND 2025
(Dollars in Thousands)
(Unaudited)
		Three Months Ended						Three Months Ended
		June 30, 2026						June 30, 2025
		Average Balance		Interest		Annualized Yield/Rate %		Average Balance		Interest		Annualized Yield/Rate %
ASSETS
Interest-earning assets:
Loans		$853,798		$12,554		5.90 %		$857,707		$12,989		6.07 %
Investment securities		174,606		1,719		3.95 %		154,576		1,335		3.46 %
Federal Home Loan Bank stock		1,429		22		6.18 %		1,320		26		7.90 %
Federal funds sold and securities purchased under reverse repurchase agreements		6,498		62		3.83 %		4,850		53		4.38 %
Interest-bearing deposits in banks		33,320		300		3.61 %		40,710		451		4.44 %
Total interest-earning assets		1,069,651		14,657		5.50 %		1,059,163		14,854		5.63 %
Noninterest-earning assets		64,803						63,179
Total assets		$1,134,454						$1,122,342
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits		$207,143		350		0.68 %		$203,734		438		0.86 %
Money market/savings deposits		327,283		1,995		2.44 %		273,185		1,743		2.56 %
Time deposits		311,093		2,571		3.31 %		356,602		2,944		3.31 %
Total interest-bearing deposits		845,519		4,916		2.33 %		833,521		5,125		2.47 %
Noninterest-bearing demand deposits		150,638		—		—		155,432		—		—
Total deposits		996,157		4,916		1.98 %		988,953		5,125		2.08 %
Borrowings		24,281		241		3.98 %		22,966		253		4.42 %
Total funding liabilities		1,020,438		5,157		2.03 %		1,011,919		5,378		2.13 %
Other noninterest-bearing liabilities		9,477						9,100
Shareholders' equity		104,539						101,323
Total liabilities and shareholders' equity		$1,134,454						$1,122,342
Net interest income				$9,500						$9,476
Net interest margin						3.56 %						3.59 %

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY
NET INTEREST MARGIN
SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(Dollars in Thousands)
(Unaudited)
		Six Months Ended												Six Months Ended
		June 30, 2026												June 30, 2025
		Average Balance				Interest				Annualized Yield/Rate %				Average Balance				Interest				Annualized Yield/Rate %
ASSETS
Interest-earning assets:
Loans		$	852,519			$	25,045				5.92	%		$	841,210			$	25,230				6.05	%
Investment securities			175,154				3,406				3.92	%			160,377				2,747				3.45	%
Federal Home Loan Bank stock			1,113				34				6.16	%			1,331				50				7.58	%
Federal funds sold and securities purchased under reverse repurchase agreements			11,077				214				3.90	%			4,850				106				4.41	%
Interest-bearing deposits in banks			49,603				898				3.65	%			33,505				739				4.45	%
Total interest-earning assets			1,089,466				29,597				5.48	%			1,041,273				28,872				5.59	%
Noninterest-earning assets			64,351												63,664
Total assets		$	1,153,817											$	1,104,937
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits		$	208,900				750				0.72	%		$	207,909				930				0.90	%
Money market/savings deposits			328,886				4,123				2.53	%			265,160				3,287				2.50	%
Time deposits			332,281				5,653				3.43	%			343,494				5,777				3.39	%
Total interest-bearing deposits			870,067				10,526				2.44	%			816,563				9,994				2.47	%
Noninterest-bearing demand deposits			150,539				—				—				155,363				—				—
Total deposits			1,020,606				10,526				2.08	%			971,926				9,994				2.07	%
Borrowings			17,655				356				4.07	%			23,184				505				4.39	%
Total funding liabilities			1,038,261				10,882				2.11	%			995,110				10,499				2.13	%
Other noninterest-bearing liabilities			10,395												9,294
Shareholders' equity			105,161												100,533
Total liabilities and shareholders' equity		$	1,153,817											$	1,104,937
Net interest income						$	18,715											$	18,373
Net interest margin											3.46	%											3.56	%

 

FIRST US BANCSHARES, INC. AND SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, Except Share and Per Share Data)
		June 30,				December 31,
		2026				2025
		(Unaudited)
ASSETS
Cash and due from banks		$	11,707			$	9,401
Interest-bearing deposits in banks			47,230				64,146
Total cash and cash equivalents			58,937				73,547
Federal funds sold and securities purchased under reverse repurchase agreements			4,850				4,850
Investment securities available-for-sale, at fair value (amortized cost $168,469 and     $169,037; net of allowance for credit losses of $- and $-)			165,578				168,075
Investment securities held-to-maturity, at amortized cost, net of allowance for credit     losses of $- and $-, (fair value 2026 - $364, 2025 - $449)			381				465
Federal Home Loan Bank stock, at cost			1,779				791
Loans and leases held for investment			860,635				853,018
Less allowance for credit losses on loans and leases			10,882				10,704
Net loans and leases held for investment			849,753				842,314
Premises and equipment, net of accumulated depreciation			27,212				26,284
Cash surrender value of bank-owned life insurance			17,555				17,378
Accrued interest receivable			3,980				3,916
Goodwill and core deposit intangible, net			7,435				7,435
Other real estate owned			175				256
Other assets			9,984				9,474
Total assets		$	1,147,619			$	1,154,785
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing		$	149,800			$	153,809
Interest-bearing			848,156				874,153
Total deposits			997,956				1,027,962
Accrued interest expense			1,526				2,526
Other liabilities			7,870				7,704
Short-term borrowings			25,000				—
Long-term borrowings			10,982				10,945
Total liabilities			1,043,334				1,049,137
Shareholders' equity:
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 8,019,126 and     7,947,303 shares issued, respectively; 5,523,209 and 5,699,696 shares outstanding,    respectively			80				79
Additional paid-in capital			16,411				16,005
Accumulated other comprehensive loss, net of tax			(1,700)				(780)
Retained earnings			124,166				121,249
Less treasury stock: 2,495,917 and 2,247,607 shares at cost, respectively			(34,672)				(30,905)
Total shareholders' equity			104,285				105,648
Total liabilities and shareholders' equity		$	1,147,619			$	1,154,785

 

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,
		2026				2025				2026				2025
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest income:
Interest and fees on loans		$	12,554			$	12,989			$	25,045			$	25,230
Interest on investment securities			1,719				1,335				3,406				2,747
Interest on deposits in banks			300				451				898				739
Other			84				79				248				156
Total interest income			14,657				14,854				29,597				28,872
Interest expense:
Interest on deposits			4,916				5,125				10,526				9,994
Interest on borrowings			241				253				356				505
Total interest expense			5,157				5,378				10,882				10,499
Net interest income			9,500				9,476				18,715				18,373
Provision for credit losses			939				2,717				1,193				3,245
Net interest income after provision for credit losses			8,561				6,759				17,522				15,128
Non-interest income:
Net gain on sales and prepayments of investment securities			455				—				458				2
Service and other charges on deposit accounts			277				278				560				566
Lease income			272				269				541				553
Other income, net			314				302				599				603
Total non-interest income			1,318				849				2,158				1,724
Non-interest expense:
Salaries and employee benefits			3,898				3,945				7,712				7,681
Net occupancy and equipment			1,016				937				1,987				1,812
Computer services			457				421				794				833
Insurance expense and assessments			408				366				823				750
Fees for professional services			310				470				638				685
Other expense			1,554				1,305				3,030				2,601
Total non-interest expense			7,643				7,444				14,984				14,362
Income before income taxes			2,236				164				4,696				2,490
Provision for income taxes			483				9				998				563
Net income		$	1,753			$	155			$	3,698			$	1,927
Basic net income per share		$	0.31			$	0.03			$	0.65			$	0.33
Diluted net income per share		$	0.31			$	0.03			$	0.64			$	0.32
Dividends per share		$	0.07			$	0.07			$	0.14			$	0.14

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.

	June 30, 2026				December 31, 2025
	(Dollars in Thousands)
	(Unaudited)				(Unaudited)
Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements:
Cash and cash equivalents	$	58,937			$	73,547
Federal funds sold and securities purchased under reverse repurchase agreements		4,850				4,850
Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements		63,787				78,397
Liquidity from pledgable investment securities:
Investment securities available-for-sale, at fair value		165,578				168,075
Investment securities held-to-maturity, at amortized cost		381				465
Less: securities pledged		(58,409)				(58,497)
Less: estimated collateral value discounts		(10,747)				(10,671)
Total liquidity from pledgable investment securities		96,803				99,372
Liquidity from unused lendable collateral (loans) at FHLB		9,723				30,504
Liquidity from unused lendable collateral (loans and securities) at FRB		191,593				210,921
Unsecured lines of credit with banks		48,000				48,000
Total readily available liquidity	$	409,906			$	467,194

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.

				Quarter Ended										Six Months Ended
				2026				2025						2026		2025
				June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
				(Dollars in Thousands)
				(Unaudited Reconciliation)
Net income				$1,753		$1,945		$2,129		$1,936		$155		$3,698		$1,927
Add: Provision for income taxes				483		515		798		583		9		998		563
Add: Provision for credit losses				939		254		220		566		2,717		1,193		3,245
Pre-tax pre-provision net revenue				$3,175		$2,714		$3,147		$3,085		$2,881		$5,889		$5,735
Average assets				$1,134,454		$1,173,390		$1,145,476		$1,130,259		$1,122,342		$1,153,817		$1,104,937
PPNR as a percentage of average assets (annualized)				1.12 %		0.94 %		1.09 %		1.08 %		1.03 %		1.03 %		1.05 %

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
				2026				2025						2026		2025
				June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
				(Dollars in Thousands, Except Per Share Data)
				(Unaudited Reconciliation)
TANGIBLE BALANCES
Total assets				$1,147,619		$1,165,236		$1,154,785		$1,147,175		$1,143,379
Less: Goodwill				7,435		7,435		7,435		7,435		7,435
Less: Core deposit intangible				—		—		—		—		12
Tangible assets		(a)		$1,140,184		$1,157,801		$1,147,350		$1,139,740		$1,135,932
Total shareholders' equity				$104,285		$104,634		$105,648		$104,238		$101,892
Less: Goodwill				7,435		7,435		7,435		7,435		7,435
Less: Core deposit intangible				—		—		—		—		12
Tangible common equity		(b)		$96,850		$97,199		$98,213		$96,803		$94,445
Average shareholders' equity				$104,539		$105,790		$105,067		$102,737		$101,323		$105,161		$100,533
Less: Average goodwill				7,435		7,435		7,435		7,435		7,435		7,435		7,435
Less: Average core deposit intangible				—		—		—		4		21		—		30
Average tangible shareholders' equity		(c)		$97,104		$98,355		$97,632		$95,298		$93,867		$97,726		$93,068
Net income		(d)		$1,753		$1,945		$2,129		$1,936		$155		$3,698		$1,927
Common shares outstanding (in thousands)		(e)		5,523		5,604		5,700		5,765		5,755
TANGIBLE MEASURES
Tangible book value per common share		(b)/(e)		$17.54		$17.34		$17.23		$16.79		$16.41
Tangible common equity to tangible assets		(b)/(a)		8.49 %		8.40 %		8.56 %		8.49 %		8.31 %
Return on average tangible common equity (annualized)		(1)		7.24 %		8.02 %		8.65 %		8.06 %		0.66 %		7.63 %		4.17 %

 

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-2026-results-302838071.html

SOURCE First US Bancshares, Inc.

FAQ

How did First US Bancshares (FUSB) perform in Q2 2026?

First US Bancshares reported net income of $1.8 million, or $0.31 per diluted share, for Q2 2026. According to First US Bancshares, this compared to $1.9 million ($0.33) in Q1 2026 and $0.2 million ($0.03) in Q2 2025.

What drove the year-over-year earnings increase for FUSB in the first half of 2026?

First-half 2026 net income rose to $3.7 million from $1.9 million a year earlier, with diluted EPS at $0.64 versus $0.32. According to First US Bancshares, the improvement primarily reflected a lower provision for credit losses on loans and leases.

How did loans and deposits trend for First US Bancshares (FUSB) in Q2 2026?

Total loans increased 2.0% quarter over quarter to $860.6 million, while total deposits fell 3.9% to $998.0 million. According to First US Bancshares, loan growth was led by construction and indirect consumer lending, and lower deposits supported reduced funding costs.

What was First US Bancshares’ net interest margin in Q2 2026?

Net interest margin was 3.56% for Q2 2026, compared with 3.37% in Q1 2026 and 3.59% in Q2 2025. According to First US Bancshares, margin expansion quarter over quarter reflected management of deposit costs and changes in the balance sheet mix.

How strong were First US Bancshares’ asset quality metrics in Q2 2026?

Nonperforming assets were 0.17% of total assets and the allowance for credit losses was 1.26% of total loans at June 30, 2026. According to First US Bancshares, net charge-offs were 0.30% of average loans in Q2 2026, below 2Q2025 levels.

What was the provision for credit losses for FUSB in Q2 2026?

The provision for credit losses was $0.9 million in Q2 2026, versus $0.3 million in Q1 2026 and $2.7 million in Q2 2025. According to First US Bancshares, the sequential increase was mainly related to loan growth and economic-factor changes.

What dividend and book value did First US Bancshares (FUSB) report for Q2 2026?

First US Bancshares declared a quarterly cash dividend of $0.07 per share for Q2 2026. At June 30, 2026, book value per common share was $18.88, and tangible book value per share was $17.54, according to First US Bancshares.