First US Bancshares, Inc. Announces Expansion of Share Repurchase Program

Rhea-AI Summary

First US Bancshares announced an expansion of its share repurchase program, with the Board of Directors authorizing an additional 600,000 shares for repurchase. The company has already repurchased 1,289,972 shares to date, with 352,813 shares still available under the current program. The repurchase program's expiration has been extended from December 31, 2024, to December 31, 2025. Purchases may be made through open market or private transactions, subject to regulatory requirements and can be suspended at any time.

Positive

• Authorization of additional 600,000 shares for repurchase program
• Extension of repurchase program timeline by one year
• Significant historical execution with 1,289,972 shares already repurchased

Negative

• None.

Insights

Financial Analyst

This share repurchase program expansion signals a significant capital allocation decision by FUSB. The addition of 600,000 shares to the existing program, combined with the 352,813 shares still available, represents substantial buying power relative to FUSB's market cap. With the company having already repurchased 1,289,972 shares, management demonstrates a consistent commitment to returning value to shareholders.

The program's extension through December 31, 2025 provides flexibility in execution timing, allowing management to be opportunistic with purchases. The Rule 10b5-1 and 10b-18 compliance framework ensures systematic, legally sound implementation. For a small-cap bank stock with relatively low trading volume, this program could provide meaningful support for share price while potentially improving key per-share metrics like earnings and book value.

BIRMINGHAM, Ala., Nov. 20, 2024 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), a Delaware corporation based in Birmingham, Alabama, announced today that its Board of Directors has expanded the Company's existing share repurchase program.  The Company has repurchased 1,289,972 shares of its common stock to date under the repurchase program, and 352,813 shares remain available for repurchase.  The Board of Directors has authorized the Company to repurchase an additional 600,000 shares under the repurchase program and extended the expiration of the repurchase program from December 31, 2024, to December 31, 2025.  The share repurchase program was originally approved by the Company's Board of Directors on January 19, 2006. 

Share repurchases under the repurchase program may be made through open market transactions, through privately negotiated transactions or otherwise at times and in such amounts as management deems appropriate, subject to applicable regulatory requirements.  Open market purchases may be executed through a pre-arranged repurchase plan that operates in accordance with the guidelines specified under Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended.  The repurchase program does not obligate the Company to acquire any particular number of shares and may be suspended at any time at the Company's discretion.

About First US Bancshares, Inc.

First US Bancshares, Inc. is a bank holding company that operates banking offices in Alabama, Tennessee and Virginia through First US Bank (the "Bank").  The Company files periodic reports with the U.S. Securities and Exchange Commission (the "SEC").  Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.firstusbank.com.  More information about the Company and the Bank may be obtained at www.firstusbank.com.  The Company's stock is traded on the Nasdaq Capital Market under the symbol "FUSB."

Forward-Looking Statements

This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. The Company undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, the Company, through its senior management, may make from time-to-time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of the Company's senior management based upon current information and involve a number of risks and uncertainties.

Certain factors that could affect the accuracy of such forward-looking statements and cause actual results to differ materially from those projected in such forward-looking statements are identified in the public filings made by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be considered in light of those factors. Such factors may include risk related to the Company's credit, including that if loan losses are greater than anticipated; the increased lending risks associated with commercial real estate lending; 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; 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 impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the costs of complying with extensive governmental regulation; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; and other risk factors described from time to time in the Company's public filings, including, but not limited to, the Company's most recent Annual Report on Form 10-K. Relative to the Company's dividend policy, the payment of cash dividends is subject to the discretion of the Board of Directors and will be determined in light of then-current conditions, including the Company's earnings, leverage, operations, financial conditions, capital requirements and other factors deemed relevant by the Board of Directors. In the future, the Board of Directors may change the Company's dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.

Contact:	Thomas S. Elley
	(205) 582-1200

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SOURCE First US Bancshares, Inc.

FAQ

How many additional shares did First US Bancshares (FUSB) authorize for repurchase in November 2024?

First US Bancshares authorized an additional 600,000 shares for repurchase under its share repurchase program.

When does First US Bancshares' (FUSB) expanded share repurchase program expire?

The expanded share repurchase program has been extended to December 31, 2025.

How many shares has First US Bancshares (FUSB) repurchased to date under its program?

First US Bancshares has repurchased 1,289,972 shares of its common stock to date under the repurchase program.

How many shares remain available for repurchase under FUSB's current program?

352,813 shares remain available for repurchase under the current program, before the additional 600,000 share authorization.