First Us Bancsha Stock Price, News & Analysis

First US Bancshares, Inc. (NASDAQ: FUSB) is a bank holding company and the parent of First US Bank. According to available information, the Bank conducts a general commercial banking business and offers banking services that include demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services, and remote deposit capture. The Bank provides commercial banking services to small and medium-sized businesses, property managers, business executives, professionals, and other individuals.

First US Bancshares, Inc. is based in Birmingham, Alabama, and its common stock trades on the Nasdaq Capital Market under the symbol FUSB. First US Bank is a wholly owned subsidiary of the Company and operates banking offices in Alabama, Tennessee, and Virginia. Through these offices, the Bank focuses on serving both business and consumer customers with a range of deposit and lending products described in its public disclosures.

Business model and banking services

The Company’s business model centers on traditional commercial banking activities conducted through First US Bank. Based on the Company’s description, it gathers deposits through demand, savings, IRA and time deposit accounts and deploys those funds primarily into loans and leases. Its loan portfolio includes real estate loans secured by 1–4 family residential properties, multi-family residential properties, non-residential commercial real estate, construction and land development, as well as commercial and industrial (C&I) loans and consumer loans.

Within consumer lending, the Bank offers both direct and indirect loans. Public financial disclosures describe an indirect lending platform that 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. This indirect portfolio has been a significant component of the Company’s loan growth, as reflected in recent quarterly reports.

Geographic footprint and customer focus

First US Bank operates banking offices in Alabama, Tennessee, and Virginia. According to the Company, it provides a range of commercial banking services to small and medium-sized businesses, property managers, business executives, professionals, and other individuals. This mix of business and consumer customers supports a diversified loan portfolio that includes commercial real estate, C&I lending, and consumer indirect lending, alongside traditional residential and other real estate loans.

Deposits include noninterest-bearing and interest-bearing demand accounts, savings accounts, and certificates of deposit. Core deposits, as defined in the Company’s financial disclosures, represent an important funding source for its lending activities, while brokered certificates of deposit and short-term borrowings are also used as described in its reports.

Financial reporting and performance metrics

First US Bancshares, Inc. regularly reports its financial results, including net income, net interest income, provision for credit losses, non-interest income, and non-interest expense. The Company also discloses key banking metrics such as net interest margin, efficiency ratio, return on average assets, return on average common equity, total loans, total deposits, total assets, and various capital and asset quality ratios. These measures are included in its earnings press releases and related tables and provide insight into its profitability, asset growth, loan mix, deposit base, and credit quality.

The Company highlights pre-tax pre-provision net revenue (PPNR) as a non-GAAP measure in its financial communications and provides reconciliations in its public materials. It also reports on the allowance for credit losses (ACL) on loans and leases as a percentage of total loans, nonperforming assets as a percentage of total assets, and net charge-offs as a percentage of average loans, which are important indicators of credit risk management.

Capital management, dividends, and share repurchases

First US Bancshares, Inc. has an ongoing capital management program that includes cash dividends and share repurchases, as described in its press releases. The Company has announced recurring quarterly cash dividends per share over an extended sequence of quarters, noting that it evaluates dividend payments with the stated goal of rewarding shareholders while maintaining what it describes as a strong capital base.

The Company has also disclosed a share repurchase program that was originally approved by its Board of Directors on January 19, 2006. Under this program, the Company has repurchased shares of its common stock and, as of a recent announcement, the Board authorized an expansion of the program by approving the repurchase of additional shares and extending the program’s expiration date. Repurchases may be made through open market transactions, privately negotiated transactions, or otherwise, and may be executed under pre-arranged repurchase plans that operate in accordance with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company has stated that the program does not obligate it to acquire any particular number of shares and may be suspended at its discretion.

Loan portfolio composition and indirect lending

In its financial disclosures, First US Bancshares, Inc. provides detailed breakdowns of loans by category, including construction, land development and other land loans; loans secured by 1–4 family residential properties; loans secured by multi-family residential properties; loans secured by non-residential commercial real estate; C&I loans; and consumer loans, both direct and indirect. The indirect lending platform, which focuses on recreational and equipment consumer lending at the higher end of the credit spectrum, has been a notable driver of loan growth.

The Company reports that collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. It also discloses weighted average credit scores for new indirect loans and for the indirect portfolio as a whole, indicating an emphasis on borrowers with higher credit scores. Changes in the provision for credit losses have been linked in Company commentary to growth and credit performance in the indirect consumer portfolio, as well as to specific commercial loans.

Deposits, liquidity, and funding

First US Bancshares, Inc. reports on its deposit base, including total deposits and the composition of deposits between core deposits and other categories such as larger time deposits and wholesale brokered deposits. The Company has described how deposit growth and changes in deposit mix affect its funding costs and liquidity management.

Short-term borrowings, including borrowings from the Federal Home Loan Bank of Atlanta and the Federal Reserve Bank’s discount window, are discussed in its financial releases as part of efforts to maintain on-balance sheet liquidity while managing deposit repricing. The Company also discloses the level of cash, federal funds sold, securities purchased under reverse repurchase agreements, and investment securities as a percentage of total assets, which provides additional context on its deployment of funds and balance sheet structure.

Governance and board composition

First US Bancshares, Inc. provides information about its corporate governance through SEC filings and press releases. For example, the Company has disclosed the election of a new director to its Board of Directors and to the Board of First US Bank, along with committee assignments such as the Asset/Liability Committee, Information Technology Steering Committee, and Retail, Operations and Compliance Committee. The Company has also described a director indemnification agreement that outlines indemnification and advancement of expenses for directors, subject to specified limitations and applicable law.

According to its filings, the Company’s directors may receive compensation as described in its periodic reports and may be eligible for awards under its incentive plans. The Company has also noted that it maintains directors and officers liability insurance, as described in referenced agreements.

Regulatory reporting and investor communications

First US Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission. It has furnished investor presentation materials under Item 7.01 of Form 8-K, describing these materials as including reviews of financial results and trends through specified reporting periods. The Company has indicated that such materials are intended to be made available to shareholders, analysts, and investors, including participants in investor conferences, during particular quarters or until updated materials are furnished.

In addition, the Company issues press releases announcing financial results for its quarters and other corporate actions such as dividends, share repurchase program changes, and board appointments. These press releases are sometimes furnished as exhibits to Forms 8-K under Items 2.02 or 8.01, as reflected in recent filings.

Stock information and sector classification

First US Bancshares, Inc. is identified as operating in the commercial banking industry within the finance and insurance sector. Its common stock is listed on the Nasdaq Capital Market under the ticker symbol FUSB. As a bank holding company, its primary operating subsidiary is First US Bank, which conducts the commercial banking activities described in the Company’s public information.