First US Bancshares, Inc. Reports Fourth Quarter and Full-Year 2024 Earnings

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Insights

The Q4 2024 results reveal a complex operating environment for First US Bancshares, with both challenges and strategic adaptations worth noting. The 22.7% quarterly decline in net income to $1.7 million primarily reflects margin compression from the rapid Fed rate cuts, as variable-rate assets repriced faster than liabilities.

Notable strategic positives include:

Effective expense management, with non-interest expenses down $0.8 million year-over-year through strategic staffing initiatives
Proactive capital management via increased quarterly dividend to $0.07 and strategic share repurchases at attractive prices
Improved balance sheet positioning with $58 million deployment into higher-yielding securities
Geographic expansion into growth markets like Daphne/Mobile

The bank's core fundamentals remain solid with 86.1% core deposit ratio and strong capital levels (9.50% Tier 1 leverage ratio). While asset quality shows a slight deterioration with NPAs at 0.50%, the increase is isolated to specific credits rather than systemic issues. The strategic focus on reducing wholesale funding dependence while growing core deposits positions the bank well for the evolving rate environment in 2025.

01/27/2025 - 04:15 PM

BIRMINGHAM, Ala., Jan. 27, 2025 /PRNewswire/ -- Fourth Quarter and Full-Year Highlights:

Period	Net Income	Diluted Earnings per share	Return on average assets (annualized)	Return on average common equity (annualized)	Return on average tangible common equity (annualized) ⁽¹⁾
4Q2024	$1.7 million	$0.29	0.63 %	6.92 %	7.49 %
Full-Year 2024	$8.2 million	$1.33	0.76 %	8.62 %	9.37 %

First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.7 million, or $0.29 per diluted share, for the quarter ended December 31, 2024 ("4Q2024"), compared to $2.2 million, or $0.36 per diluted share, for the quarter ended September 30, 2024 ("3Q2024") and $2.3 million, or $0.36 per diluted share, for the quarter ended December 31, 2023 ("4Q2023"). For the year ended December 31, 2024, net income totaled $8.2 million, or $1.33 per diluted share, compared to $8.5 million, or $1.33 per diluted share, for the year ended December 31, 2023.

The table below summarizes selected financial data for each of the periods presented.

	Quarter Ended															Year Ended
	2024												2023			2024			2023
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
Results of Operations:	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest income	$	14,420		$	15,017		$	14,546		$	14,277		$	13,945		$	58,260		$	52,806
Interest expense		5,672			5,832			5,370			5,237			4,835			22,111			15,456
Net interest income		8,748			9,185			9,176			9,040			9,110			36,149			37,350
Provision for (recovery of) credit losses		470		152				-			-			(434)			622			319
Net interest income after provision for (recovery of) credit losses		8,278			9,033			9,176			9,040			9,544			35,527			37,031
Non-interest income		982			901			835			865			916			3,583			3,381
Non-interest expense		6,947			6,990			7,272			7,147			7,401			28,356			29,141
Income before income taxes		2,313			2,944			2,739			2,758			3,059			10,754			11,271
Provision for income taxes		599			722			612			651			782			2,584			2,786
Net income	$	1,714		$	2,222		$	2,127		$	2,107		$	2,277		$	8,170		$	8,485
Per Share Data:
Basic net income per share	$	0.30		$	0.38		$	0.36		$	0.36		$	0.38		$	1.40		$	1.42
Diluted net income per share	$	0.29		$	0.36		$	0.34		$	0.34		$	0.36		$	1.33		$	1.33
Dividends declared	$	0.07		$	0.05		$	0.05		$	0.05		$	0.05		$	0.22		$	0.20
Key Measures (Period End):
Total assets	$	1,101,086		$	1,100,235		$	1,083,313		$	1,070,541		$	1,072,940
Tangible assets ⁽¹⁾		1,093,602			1,092,733			1,075,781			1,062,972			1,065,334
Total loans		823,039			803,308			819,126			822,941			821,791
Allowance for credit losses ("ACL") on loans and leases		10,184			10,116			10,227			10,436			10,507
Investment securities, net		168,570			145,044			144,876			126,363			136,669
Total deposits		972,557			981,149			954,455			943,268			950,191
Short-term borrowings		10,000			-			15,000			15,000			10,000
Long-term borrowings		10,872			10,854			10,836			10,817			10,799
Total shareholders' equity		98,624			98,491			93,836			92,326			90,593
Tangible common equity ⁽¹⁾		91,140			90,989			86,304			84,757			82,987
Book value per common share		17.31			17.23			16.34			15.95			15.80
Tangible book value per common share ⁽¹⁾		16.00			15.92			15.03			14.65			14.47
Key Ratios:
Return on average assets (annualized)		0.63	%		0.82	%		0.80	%		0.80	%		0.86	%		0.76	%		0.82	%
Return on average common equity (annualized)		6.92	%		9.21	%		9.23	%		9.25	%		10.31	%		8.62	%		9.88	%
Return on average tangible common equity (annualized) ⁽¹⁾		7.49	%		9.99	%		10.05	%		10.08	%		11.29	%		9.37	%		10.85	%
Net interest margin		3.41	%		3.60	%		3.69	%		3.65	%		3.67	%		3.59	%		3.87	%
Efficiency ratio ⁽²⁾		71.4	%		69.3	%		72.6	%		72.2	%		73.8	%		71.4	%		71.5	%
Total loans to deposits		84.6	%		81.9	%		85.8	%		87.2	%		86.5	%
Total loans to assets		74.7	%		73.0	%		75.6	%		76.9	%		76.6	%
Common equity to total assets		8.96	%		8.95	%		8.66	%		8.62	%		8.44	%
Tangible common equity to tangible assets ⁽¹⁾		8.33	%		8.33	%		8.02	%		7.97	%		7.79	%
Tier 1 leverage ratio ⁽³⁾		9.50	%		9.49	%		9.46	%		9.37	%		9.36	%
ACL on loans and leases as % of total loans		1.24	%		1.26	%		1.25	%		1.27	%		1.28	%
Nonperforming assets as % of total assets		0.50	%		0.60	%		0.27	%		0.28	%		0.28	%
Net charge-offs as a percentage of average loans		0.24	%		0.12	%		0.10	%		0.09	%		0.19	%		0.14	%		0.14	%

⁽¹⁾ Refer to Non-GAAP reconciliation of tangible balances and measures beginning on page 9.

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

⁽³⁾ First US Bank Tier 1 leverage ratio

CEO Commentary

"While 2024 was a challenging year from a loan growth standpoint, we were able to maintain diluted earnings per share at a level consistent with the previous year," stated James F. House, President and CEO of the Company. "In the fourth quarter, we saw an uptick in loan growth throughout our lending platforms, and we continued to enhance yield on our investment portfolio through opportunistic purchases. As we start 2025, our team continues to focus on opportunities to grow earning assets and reduce funding costs in a manner consistent with the changing interest rate environment," 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
	2024				2023
	December 31,	September 30,	June 30,	March 31,	December 31,
	(Dollars in Thousands)
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Real estate loans:
Construction, land development and other land loans	$65,537	$53,098	$72,183	$102,282	$88,140
Secured by 1-4 family residential properties	69,999	70,067	70,272	74,361	76,200
Secured by multi-family residential properties	101,057	100,627	97,527	62,145	62,397
Secured by non-farm, non-residential properties	227,751	224,611	218,386	212,465	213,586
Commercial and industrial loans	44,238	44,872	46,249	57,112	60,515
Consumer loans:
Direct	4,774	5,018	5,272	5,590	5,938
Branch retail	5,558	6,233	6,879	7,794	8,670
Indirect	304,125	298,782	302,358	301,192	306,345
Total loans and leases held for investment	$823,039	$803,308	$819,126	$822,941	$821,791
Allowance for credit losses on loans and leases	10,184	10,116	10,227	10,436	10,507
Net loans and leases held for investment	$812,855	$793,192	$808,899	$812,505	$811,284

Total loan volume increased by $19.7 million, or 2.5%, in 4Q2024, driven primarily by growth in construction, consumer indirect, and commercial real estate (secured by non-farm, non-residential property) lending. For the year ended December 31, 2024, total loans increased by $1.2 million, or 0.2%. Total loan volume averaged $818.5 million during the year ended December 31, 2024, compared to $795.4 million during the year ended December 31, 2023.

Net Interest Income and Margin – Net interest income decreased by $0.4 million comparing 4Q2024 to both 3Q2024 and 4Q2023. Net interest margin totaled 3.41% for 4Q2024, compared to 3.60% for 3Q2024 and 3.67% for 4Q2023. The decrease in net interest income and margin in 4Q2024 compared to 3Q2024 was primarily driven by reductions in the federal funds rate and market interest rates. From September 2024 through December 2024, the federal funds rate was reduced by 100 basis points and similar reductions occurred on certain market interest rates that are used to price the Company's variable rate loans. Amid these interest rate reductions, the Company's earning assets repriced more quickly than its interest-bearing liabilities. Comparing 4Q2024 to 4Q2023, net interest income and margin decreased primarily due to the higher cost of interest-bearing liabilities in 2024 relative to 2023. While total funding costs decreased by seven basis points during 4Q2024, compared to 3Q2024, they remained 30 basis points higher than 4Q2023. For the year ended December 31, 2024, net interest income totaled $36.1 million, compared to $37.4 million for the year ended December 31, 2023. Net interest margin totaled 3.59% for the year ended December 31, 2024, compared to 3.87% for the year ended December 31, 2023.

Deposits – Total deposits decreased by $8.6 million, or 0.9%, during 4Q2024, primarily due to the payoff of $10.0 million in callable wholesale brokered time deposits during the quarter. The brokered time deposits were paid off in an effort to reduce the Company's interest expense over time, while increasing reliance on core deposits. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $837.7 million, or 86.1% of total deposits, as of December 31, 2024, compared to $833.5 million, or 85.0% of total deposits, as of September 30, 2024, and $819.5 million, or 86.2% of total deposits, as of December 31, 2023.

Deployment of Funds – As of December 31, 2024, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $52.9 million, or 4.8% of total assets, compared to $59.8 million, or 5.6% of total assets, as of December 31, 2023. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $168.6 million as of December 31, 2024, compared to $136.7 million as of December 31, 2023. During the year ended December 31, 2024, the Company invested $58.0 million in taxable U.S. agency-sponsored bonds, resulting in improved yields in the investment portfolio. Of this amount, $30.5 million was purchased in 4Q2024. As of December 31, 2024, the expected average life of securities in the investment portfolio was 3.6 years, compared to 3.9 years as of December 31, 2023.

Provision for Credit Losses – During 4Q2024, the Company recorded a provision for credit losses of $0.5 million, compared to a provision for credit losses of $0.2 million in 3Q2024 and a recovery of credit losses of $0.4 million during 4Q2023. The provision for credit losses taken in 4Q2024 resulted primarily from loan growth during the quarter, as well as an increase in the allowance for credit losses ("ACL") on individually evaluated loans and adjustments in economic forecasts that impact the calculation of the ACL on loans and leases. For the year ended December 31, 2024, the provision for credit losses totaled $0.6 million, compared to $0.3 million for the year ended December 31, 2023. As of December 31, 2024, the Company's ACL on loans and leases as a percentage of total loans was 1.24%, compared to 1.28% as of December 31, 2023.

Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned ("OREO"), totaled $5.4 million as of December 31, 2024, compared to $3.0 million as of December 31, 2023. The increase in nonperforming assets during 2024 resulted primarily from one loan that was foreclosed and moved into OREO and another loan that moved into non-accrual status during 2024. As a percentage of total assets, nonperforming assets totaled 0.50% as of December 31, 2024, compared to 0.28% as of December 31, 2023. Net charge-offs as a percentage of average loans totaled 0.14% during both the years ended December 31, 2024 and 2023.

Non-interest Income – Non-interest income totaled $1.0 million in 4Q2024, compared to $0.9 million in both 3Q2024 and 4Q2023. For the year ended December 31, 2024, non-interest income totaled $3.6 million, compared to $3.4 million for the year ended December 31, 2023.

Non-interest Expense – Non-interest expense totaled $6.9 million in 4Q2024, compared to $7.0 million in 3Q2024, and $7.4 million in 4Q2023. For the year ended December 31, 2024, non-interest expense totaled $28.4 million, compared to $29.1 million for the year ended December 31, 2023. The expense reduction comparing both 4Q2024 and full-year 2024 to the corresponding periods of 2023 resulted primarily from decreases in salaries and benefits and other expense categories. Salaries and benefits expense decreased during 2024 primarily due to lower staff levels resulting from strategic initiatives implemented by the Company in prior years. In addition, other expenses were lower during 2024 compared to 2023, primarily due to the recovery of check fraud losses and reduced collection expenses. The reductions in non-interest expense during the year ended December 31, 2024 were partially offset by increased occupancy and equipment expenses.

Shareholders' Equity – As of December 31, 2024, shareholders' equity totaled $98.6 million, or 8.96% of total assets, compared to $90.6 million, or 8.44% of total assets, as of December 31, 2023. The increase in shareholders' equity during the year ended December 31, 2024 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during 2024 by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, as well as the maturity of lower yielding investment securities. The Company's ratio of tangible common equity to tangible assets was 8.33% as of December 31, 2024, compared to 7.79% as of December 31, 2023.

Cash Dividend – The Company increased its cash dividend to $0.07 per share on its common stock in 4Q2024, compared to $0.05 per share during each previous quarter of 2024 and 2023. For the year ended December 31, 2024, cash dividends totaled $0.22 per share, compared to $0.20 per share for the year ended December 31, 2023.

Share Repurchases – During 4Q2024, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $12.68 per share. The repurchases were completed under the Company's previously announced share repurchase program which was expanded in 4Q2024 to authorize the purchase of 600,000 additional shares. For the year ended December 31, 2024, the Company repurchased a total of 146,500 shares at a weighted average price of $11.22 per share. As of December 31, 2024, 912,813 shares remained available for repurchase under the program.

Regulatory Capital – During 4Q2024, the Bank continued to maintain capital ratios at higher levels than required to be considered a "well-capitalized" institution under applicable banking regulations. As of December 31, 2024, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.31%, its total capital ratio was 12.47%, and its Tier 1 leverage ratio was 9.50%.

Liquidity – As of December 31, 2024, 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, Federal Home Loan Bank (FHLB) advances, the discount window of the Federal Reserve Bank (FRB), and brokered deposits.

Banking Center Growth – As part of the Company's overall growth strategy, during the year ended December 31, 2024, the Company opened a new banking center in the Bearden area of Knoxville, Tennessee that replaced the Bank's previously existing Knoxville-Bearden location. In addition, the Company commenced renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location is expected to serve as the Bank's initial deposit gathering facility in the Daphne/Mobile area, and it is anticipated that the location will open to the public in 2025.

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 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.

FIRST US BANCSHARES, INC. AND SUBSIDIARIES NET INTEREST MARGIN THREE MONTHS ENDED DECEMBER 31, 2024 AND 2023 (Dollars in Thousands) (Unaudited)

	Three Months Ended							Three Months Ended
	December 31, 2024							December 31, 2023
	Average Balance		Interest		Annualized Yield/ Rate %			Average Balance		Interest		Annualized Yield/ Rate %
ASSETS
Interest-earning assets:
Total loans	$	811,125	$	12,480		6.12	%	$	803,407	$	12,419		6.13	%
Taxable investment securities		158,283		1,303		3.27	%		131,547		825		2.49	%
Tax-exempt investment securities		1,015		3		1.18	%		1,026		3		1.16	%
Federal Home Loan Bank stock		858		16		7.42	%		1,015		18		7.04	%
Federal funds sold and securities purchased under reverse repurchase agreements		10,951		140		5.09	%		4,579		63		5.46	%
Interest-bearing deposits in banks		38,341		478		4.96	%		44,574		617		5.49	%
Total interest-earning assets		1,020,573		14,420		5.62	%		986,148		13,945		5.61	%

Noninterest-earning assets		65,498							64,530
Total	$	1,086,071						$	1,050,678

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits	$	207,890		538		1.03	%	$	198,846		221		0.44	%
Savings deposits		255,480		1,694		2.64	%		250,322		1,728		2.74	%
Time deposits		346,412		3,299		3.79	%		330,003		2,720		3.27	%
Total interest-bearing deposits		809,782		5,531		2.72	%		779,171		4,669		2.38	%
Noninterest-bearing demand deposits		155,034		—		—			156,189		—		—
Total deposits		964,816		5,531		2.28	%		935,360		4,669		1.98	%
Borrowings		12,493		141		4.49	%		16,986		166		3.88	%
Total funding costs		977,309		5,672		2.31	%		952,346		4,835		2.01	%

Other noninterest-bearing liabilities		10,144							10,717
Shareholders' equity		98,618							87,615
Total	$	1,086,071						$	1,050,678

Net interest income			$	8,748						$	9,110
Net interest margin						3.41	%						3.67	%

FIRST US BANCSHARES, INC. AND SUBSIDIARIES NET INTEREST MARGIN YEAR ENDED DECEMBER 31, 2024 AND 2023 (Dollars in Thousands) (Unaudited)

	Year Ended							Year Ended
	December 31, 2024							December 31, 2023
	Average Balance		Interest		Annualized Yield/ Rate %			Average Balance		Interest		Annualized Yield/ Rate %
ASSETS
Interest-earning assets:
Total loans	$	818,524	$	51,469		6.29	%	$	795,446	$	47,749		6.00	%
Taxable investment securities		144,503		4,387		3.04	%		127,653		2,858		2.24	%
Tax-exempt investment securities		1,020		13		1.27	%		1,042		13		1.25	%
Federal Home Loan Bank stock		891		69		7.74	%		1,264		93		7.36	%
Federal funds sold and securities purchased under reverse repurchase agreements		6,930		366		5.28	%		1,841		95		5.16	%
Interest-bearing deposits in banks		36,399		1,956		5.37	%		38,111		1,998		5.24	%
Total interest-earning assets		1,008,267		58,260		5.78	%		965,357		52,806		5.47	%

Noninterest-earning assets		65,931							63,765
Total	$	1,074,198						$	1,029,122

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits	$	205,581		1,779		0.87	%	$	212,010		777		0.37	%
Savings deposits		251,772		6,856		2.72	%		229,238		5,007		2.18	%
Time deposits		346,541		12,914		3.73	%		305,848		8,566		2.80	%
Total interest-bearing deposits		803,894		21,549		2.68	%		747,096		14,350		1.92	%
Noninterest-bearing demand deposits		152,252		—		—			160,598		—		—
Total deposits		956,146		21,549		2.25	%		907,694		14,350		1.58	%
Borrowings		13,404		562		4.19	%		26,252		1,106		4.21	%
Total funding costs		969,550		22,111		2.28	%		933,946		15,456		1.65	%

Other noninterest-bearing liabilities		9,898							9,302
Shareholders' equity		94,750							85,874
Total	$	1,074,198						$	1,029,122

Net interest income			$	36,149						$	37,350
Net interest margin						3.59	%						3.87	%

FIRST US BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Per Share Data)

	December 31,		December 31,
	2024		2023
	(Unaudited)
ASSETS
Cash and due from banks	$	10,633	$	12,987
Interest-bearing deposits in banks		36,583		37,292
Total cash and cash equivalents		47,216		50,279
Federal funds sold and securities purchased under reverse repurchase agreements		5,727		9,475
Investment securities available-for-sale, at fair value		167,888		135,565
Investment securities held-to-maturity, at amortized cost		682		1,104
Federal Home Loan Bank stock, at cost		1,256		1,201
Loans and leases held for investment		823,039		821,791
Less allowance for credit losses on loans and leases		10,184		10,507
Net loans and leases held for investment		812,855		811,284
Premises and equipment, net of accumulated depreciation		24,803		24,398
Cash surrender value of bank-owned life insurance		17,056		16,702
Accrued interest receivable		3,588		3,976
Goodwill and core deposit intangible, net		7,484		7,606
Other real estate owned		1,509		602
Other assets		11,022		10,748
Total assets	$	1,101,086	$	1,072,940
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing	$	155,945	$	153,591
Interest-bearing		816,612		796,600
Total deposits		972,557		950,191
Accrued interest expense		1,751		2,030
Other liabilities		7,282		9,327
Short-term borrowings		10,000		10,000
Long-term borrowings		10,872		10,799
Total liabilities		1,002,462		982,347
Shareholders' equity:
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,840,348 and 7,738,201 shares issued, respectively; 5,696,171 and 5,735,075 shares outstanding, respectively		78		75
Additional paid-in capital		15,540		14,972
Accumulated other comprehensive loss, net of tax		(4,344)		(6,431)
Retained earnings		116,865		109,959
Less treasury stock: 2,144,177 and 2,003,126 shares at cost, respectively		(29,515)		(27,982)
Total shareholders' equity		98,624		90,593
Total liabilities and shareholders' equity	$	1,101,086	$	1,072,940

FIRST US BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(Unaudited)		(Unaudited)		(Unaudited)
Interest income:
Interest and fees on loans	$	12,480	$	12,419	$	51,469	$	47,749
Interest on investment securities		1,306		828		4,400		2,871
Interest on deposits in banks		478		617		1,956		1,998
Other		156		81		435		188
Total interest income		14,420		13,945		58,260		52,806

Interest expense:
Interest on deposits		5,531		4,669		21,549		14,350
Interest on borrowings		141		166		562		1,106
Total interest expense		5,672		4,835		22,111		15,456

Net interest income		8,748		9,110		36,149		37,350

Provision for (recovery of) credit losses		470		(434)		622		319

Net interest income after provision for (recovery of) credit losses		8,278		9,544		35,527		37,031

Non-interest income:
Service and other charges on deposit accounts		323		328		1,232		1,197
Lease income		263		242		1,033		949
Other income, net		396		346		1,318		1,235
Total non-interest income		982		916		3,583		3,381

Non-interest expense:
Salaries and employee benefits		3,645		3,766		15,460		16,076
Net occupancy and equipment		955		854		3,761		3,479
Computer services		351		441		1,687		1,756
Insurance expense and assessments		357		427		1,510		1,583
Fees for professional services		180		370		1,184		1,105
Other expense		1,459		1,543		4,754		5,142
Total non-interest expense		6,947		7,401		28,356		29,141

Income before income taxes		2,313		3,059		10,754		11,271
Provision for income taxes		599		782		2,584		2,786
Net income	$	1,714	$	2,277	$	8,170	$	8,485
Basic net income per share	$	0.30	$	0.38	$	1.40	$	1.42
Diluted net income per share	$	0.29	$	0.36	$	1.33	$	1.33
Dividends per share	$	0.07	$	0.05	$	0.22	$	0.20

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, tangible assets and equity and certain ratios that include tangible assets and equity. Discussion of these measures and ratios is included below, along with reconciliations of such non-GAAP measures to GAAP amounts included in the consolidated financial statements previously presented in this press release.

Liquidity Measures

The table below provides information combining the Company's on-balance sheet liquidity with readily available off-balance sheet sources of liquidity as of both December 31, 2024 and December 31, 2023.

	December 31, 2024		December 31, 2023
	(Dollars in Thousands)
	(Unaudited)		(Unaudited)
Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements:
Cash and cash equivalents	$	47,216	$	50,279
Federal funds sold and securities purchased under reverse repurchase agreements		5,727		9,475
Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements		52,943		59,754
Liquidity from pledgable investment securities:
Investment securities available-for sale, at fair value		167,888		135,565
Investment securities held-to-maturity, at amortized cost		682		1,104
Less: securities pledged		(72,110)		(41,375)
Less: estimated collateral value discounts		(10,164)		(11,129)
Total liquidity from pledgable investment securities		86,296		84,165
Liquidity from unused lendable collateral (loans) at FHLB		45,388		21,696
Liquidity from unused lendable collateral (loans and securities) at FRB		165,061		161,729
Unsecured lines of credit with banks		48,000		48,000
Total readily available liquidity	$	397,688	$	375,344

The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company's consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the FHLB and FRB, as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are non-GAAP measures used by management and regulators to analyze a portion of the Company's liquidity. Management uses these measures to evaluate the Company's liquidity position.

Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-to-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheet, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value.

The unused lendable collateral value at the FHLB presented in the table represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of December 31, 2024 and December 31, 2023, the Company's total remaining credit availability with the FHLB was $319.9 million and $279.4 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company's on-balance sheet and other readily available liquidity provide strong indicators of the Company's ability to fund obligations in a stressed liquidity environment.

Excluding wholesale brokered deposits, as of December 31, 2024, the Company had approximately 29 thousand deposit accounts with an average balance of approximately $31.0 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $216.8 million, or 22.2% of total deposits, as of December 31, 2024. As of December 31, 2023, estimated uninsured deposits totaled $200.3 million, or 21.1% of total deposits.

Tangible Balances and Measures

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

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

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

		Quarter Ended					Year Ended
		2024				2023	2024	2023
		December 31,	September 30,	June 30,	March 31,	December 31,	December 31,	December 31,
		(Dollars in Thousands, Except Per Share Data)
		(Unaudited Reconciliation)
TANGIBLE BALANCES
Total assets		$1,101,086	$1,100,235	$1,083,313	$1,070,541	$1,072,940
Less: Goodwill		7,435	7,435	7,435	7,435	7,435
Less: Core deposit intangible		49	67	97	134	171
Tangible assets	(a)	$1,093,602	$1,092,733	$1,075,781	$1,062,972	$1,065,334

Total shareholders' equity		$98,624	$98,491	$93,836	$92,326	$90,593
Less: Goodwill		7,435	7,435	7,435	7,435	7,435
Less: Core deposit intangible		49	67	97	134	171
Tangible common equity	(b)	$91,140	$90,989	$86,304	$84,757	$82,987

Average shareholders' equity		$98,618	$96,000	$92,682	$91,645	$87,615	$94,750	$85,874
Less: Average goodwill		7,435	7,435	7,435	7,435	7,435	7,435	7,435
Less: Average core deposit intangible		58	80	115	151	188	101	259
Average tangible shareholders' equity	(c)	$91,125	$88,485	$85,132	$84,059	$79,992	$87,214	$78,180

Net income	(d)	$1,714	$2,222	$2,127	$2,107	$2,277	$8,170	$8,485
Common shares outstanding (in thousands)	(e)	5,696	5,715	5,744	5,787	5,735

TANGIBLE MEASURES
Tangible book value per common share	(b)/(e)	$16.00	$15.92	$15.03	$14.65	$14.47

Tangible common equity to tangible assets	(b)/(a)	8.33 %	8.33 %	8.02 %	7.97 %	7.79 %

Return on average tangible common equity (annualized)	(1)	7.49 %	9.99 %	10.05 %	10.08 %	11.29 %	9.37 %	10.85 %


(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-fourth-quarter-and-full-year-2024-earnings-302360894.html

SOURCE First US Bancshares, Inc.

FAQ

What was FUSB's earnings per share in Q4 2024?

FUSB reported earnings of $0.29 per diluted share in Q4 2024.

How much did FUSB's loan volume grow in Q4 2024?

FUSB's loan volume increased by $19.7 million, or 2.5%, in Q4 2024.

What was FUSB's dividend increase in Q4 2024?

FUSB increased its quarterly cash dividend to $0.07 per share from $0.05 per share.

How many shares did FUSB repurchase in Q4 2024?

FUSB repurchased 40,000 shares at a weighted average price of $12.68 per share in Q4 2024.

What was FUSB's net interest margin in Q4 2024?

FUSB's net interest margin was 3.41% in Q4 2024, down from 3.60% in Q3 2024.

First US Bancshares, Inc. Reports Fourth Quarter and Full-Year 2024 Earnings

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