BIRMINGHAM, Ala., Jan. 25,
2024 /PRNewswire/ -- Fourth Quarter Highlights:
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)
|
Loans to
deposits
|
$2.3 million
|
$0.36
|
0.86 %
|
10.31 %
|
11.29 %
|
86.5 %
|
First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the
parent company of First US Bank (the "Bank"), today reported net
income of $2.3 million, or
$0.36 per diluted share, for the
quarter ended December 31, 2023 ("4Q2023"), compared to
$2.1 million, or $0.33 per diluted share, for the quarter ended
September 30, 2023 ("3Q2023") and
$2.2 million, or $0.35 per diluted share, for the quarter ended
December 31, 2022 ("4Q2022"). For the year ended December 31, 2023, net income totaled
$8.5 million, or $1.33 per diluted share, compared to $6.9 million, or $1.06 per diluted share, for the year ended
December 31, 2022, an increase of 25.5% on diluted earnings
per share.
The table below summarizes selected financial data for each of
the periods presented.
|
|
Quarter
Ended
|
|
|
Year
Ended
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
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
|
|
$
|
13,945
|
|
|
$
|
13,902
|
|
|
$
|
12,999
|
|
|
$
|
11,960
|
|
|
$
|
11,621
|
|
|
$
|
52,806
|
|
|
$
|
41,197
|
|
Interest
expense
|
|
|
4,835
|
|
|
|
4,419
|
|
|
|
3,676
|
|
|
|
2,526
|
|
|
|
1,730
|
|
|
|
15,456
|
|
|
|
4,256
|
|
Net interest
income
|
|
|
9,110
|
|
|
|
9,483
|
|
|
|
9,323
|
|
|
|
9,434
|
|
|
|
9,891
|
|
|
|
37,350
|
|
|
|
36,941
|
|
Provision for (recovery
of) credit losses
|
|
|
(434)
|
|
|
|
184
|
|
|
|
300
|
|
|
|
269
|
|
|
|
527
|
|
|
|
319
|
|
|
|
3,308
|
|
Net interest income
after provision for (recovery of)
credit losses
|
|
|
9,544
|
|
|
|
9,299
|
|
|
|
9,023
|
|
|
|
9,165
|
|
|
|
9,364
|
|
|
|
37,031
|
|
|
|
33,633
|
|
Non-interest
income
|
|
|
916
|
|
|
|
837
|
|
|
|
799
|
|
|
|
829
|
|
|
|
678
|
|
|
|
3,381
|
|
|
|
3,451
|
|
Non-interest
expense
|
|
|
7,401
|
|
|
|
7,319
|
|
|
|
7,151
|
|
|
|
7,270
|
|
|
|
7,106
|
|
|
|
29,141
|
|
|
|
28,072
|
|
Income before income
taxes
|
|
|
3,059
|
|
|
|
2,817
|
|
|
|
2,671
|
|
|
|
2,724
|
|
|
|
2,936
|
|
|
|
11,271
|
|
|
|
9,012
|
|
Provision for income
taxes
|
|
|
782
|
|
|
|
704
|
|
|
|
648
|
|
|
|
652
|
|
|
|
708
|
|
|
|
2,786
|
|
|
|
2,148
|
|
Net income
|
|
$
|
2,277
|
|
|
$
|
2,113
|
|
|
$
|
2,023
|
|
|
$
|
2,072
|
|
|
$
|
2,228
|
|
|
$
|
8,485
|
|
|
$
|
6,864
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
$
|
0.38
|
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
$
|
0.37
|
|
|
$
|
1.42
|
|
|
$
|
1.13
|
|
Diluted net income per
share
|
|
$
|
0.36
|
|
|
$
|
0.33
|
|
|
$
|
0.31
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
$
|
1.33
|
|
|
$
|
1.06
|
|
Dividends
declared
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.20
|
|
|
$
|
0.14
|
|
Key Measures (Period
End):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,072,940
|
|
|
$
|
1,065,239
|
|
|
$
|
1,068,126
|
|
|
$
|
1,026,658
|
|
|
$
|
994,667
|
|
|
|
|
|
|
|
Tangible assets
(1)
|
|
|
1,065,334
|
|
|
|
1,057,597
|
|
|
|
1,060,435
|
|
|
|
1,018,912
|
|
|
|
986,866
|
|
|
|
|
|
|
|
Total loans
|
|
|
821,791
|
|
|
|
815,300
|
|
|
|
814,494
|
|
|
|
775,889
|
|
|
|
773,873
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
10,507
|
|
|
|
11,380
|
|
|
|
11,536
|
|
|
|
11,599
|
|
|
|
9,422
|
|
|
|
|
|
|
|
Investment securities,
net
|
|
|
136,669
|
|
|
|
127,823
|
|
|
|
124,404
|
|
|
|
128,689
|
|
|
|
132,657
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
950,191
|
|
|
|
927,038
|
|
|
|
932,628
|
|
|
|
897,885
|
|
|
|
870,025
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
30,000
|
|
|
|
25,000
|
|
|
|
20,038
|
|
|
|
|
|
|
|
Long-term
borrowings
|
|
|
10,799
|
|
|
|
10,781
|
|
|
|
10,763
|
|
|
|
10,744
|
|
|
|
10,726
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
90,593
|
|
|
|
87,408
|
|
|
|
85,725
|
|
|
|
84,757
|
|
|
|
85,135
|
|
|
|
|
|
|
|
Tangible common equity
(1)
|
|
|
82,987
|
|
|
|
79,766
|
|
|
|
78,034
|
|
|
|
77,011
|
|
|
|
77,334
|
|
|
|
|
|
|
|
Book value per common
share
|
|
|
15.80
|
|
|
|
14.88
|
|
|
|
14.59
|
|
|
|
14.45
|
|
|
|
14.65
|
|
|
|
|
|
|
|
Tangible book value per
common share (1)
|
|
|
14.47
|
|
|
|
13.58
|
|
|
|
13.28
|
|
|
|
13.13
|
|
|
|
13.31
|
|
|
|
|
|
|
|
Key
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
0.86
|
%
|
|
|
0.80
|
%
|
|
|
0.79
|
%
|
|
|
0.85
|
%
|
|
|
0.90
|
%
|
|
|
0.82
|
%
|
|
|
0.70
|
%
|
Return on average
common equity (annualized)
|
|
|
10.31
|
%
|
|
|
9.65
|
%
|
|
|
9.48
|
%
|
|
|
10.02
|
%
|
|
|
10.60
|
%
|
|
|
9.88
|
%
|
|
|
7.99
|
%
|
Return on average
tangible common equity
(annualized) (1)
|
|
|
11.29
|
%
|
|
|
10.58
|
%
|
|
|
10.41
|
%
|
|
|
11.05
|
%
|
|
|
11.70
|
%
|
|
|
10.85
|
%
|
|
|
8.80
|
%
|
Net interest
margin
|
|
|
3.67
|
%
|
|
|
3.79
|
%
|
|
|
3.88
|
%
|
|
|
4.13
|
%
|
|
|
4.27
|
%
|
|
|
3.87
|
%
|
|
|
4.07
|
%
|
Efficiency ratio
(2)
|
|
|
73.8
|
%
|
|
|
70.9
|
%
|
|
|
70.6
|
%
|
|
|
70.8
|
%
|
|
|
67.2
|
%
|
|
|
71.5
|
%
|
|
|
69.5
|
%
|
Total loans to
deposits
|
|
|
86.5
|
%
|
|
|
87.9
|
%
|
|
|
87.3
|
%
|
|
|
86.4
|
%
|
|
|
88.9
|
%
|
|
|
|
|
|
|
Total loans to
assets
|
|
|
76.6
|
%
|
|
|
76.5
|
%
|
|
|
76.3
|
%
|
|
|
75.6
|
%
|
|
|
77.8
|
%
|
|
|
|
|
|
|
Common equity to total
assets
|
|
|
8.44
|
%
|
|
|
8.21
|
%
|
|
|
8.03
|
%
|
|
|
8.26
|
%
|
|
|
8.56
|
%
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (1)
|
|
|
7.79
|
%
|
|
|
7.54
|
%
|
|
|
7.36
|
%
|
|
|
7.56
|
%
|
|
|
7.84
|
%
|
|
|
|
|
|
|
Tier 1 leverage ratio
(3)
|
|
|
9.36
|
%
|
|
|
9.09
|
%
|
|
|
9.19
|
%
|
|
|
9.36
|
%
|
|
|
9.39
|
%
|
|
|
|
|
|
|
Allowance for credit
losses as % of loans
|
|
|
1.28
|
%
|
|
|
1.40
|
%
|
|
|
1.42
|
%
|
|
|
1.49
|
%
|
|
|
1.22
|
%
|
|
|
|
|
|
|
Nonperforming assets as
% of total assets
|
|
|
0.28
|
%
|
|
|
0.29
|
%
|
|
|
0.15
|
%
|
|
|
0.18
|
%
|
|
|
0.24
|
%
|
|
|
|
|
|
|
Net charge-offs as a
percentage of average loans
|
|
|
0.19
|
%
|
|
|
0.10
|
%
|
|
|
0.14
|
%
|
|
|
0.11
|
%
|
|
|
0.25
|
%
|
|
|
0.14
|
%
|
|
|
0.30
|
%
|
|
(1)
Refer to Non-GAAP reconciliation of tangible balances and measures
beginning on page 11.
|
(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 wrap up a year marked by continued
improvement in operating results," stated James F. House, President and CEO of the
Company. "The substantial earnings improvement that the Company has
experienced over the past two years has reflected the strategic
efforts that we initiated beginning in 2021 to both transform asset
quality and improve operating efficiency. We are moving forward in
2024 with a strong balance sheet that is positioned for growth with
the ability to weather the economic uncertainties that lie ahead,"
continued Mr. House.
Update on Strategic Initiatives
During the third quarter of 2021, the Company initiated
strategic initiatives that were designed to improve operating
efficiency, focus the Company's loan growth activities, and fortify
asset quality. The most significant component of these initiatives
was the cessation of new business at the Bank's wholly owned
consumer loan-focused subsidiary, Acceptance Loan Company ("ALC").
This initiative, which included the closure of ALC's branch lending
locations in September 2021, served
to significantly decrease the Company's non-interest expense, and
has led to substantial improvement in the Company's consumer loan
asset quality as ALC's remaining loans have been reduced.
Historically, ALC's loans produced significantly higher levels of
charge-offs than the Bank's other loan portfolios.
During 4Q2023, the Company transferred all remaining assets and
liabilities of ALC to the Bank via intercompany transactions. On
December 29, 2023, ALC was dissolved
as a legal entity. The Bank will continue to manage the
remaining loans from ALC's portfolio, which totaled $10.5 million as of December 31, 2023, through final resolution.
Other Financial Results
Loan Growth – The table below summarizes loan
balances by portfolio category as of the end of each of the most
recent five quarters.
|
|
Quarter
Ended
|
|
|
2023
|
|
2022
|
|
|
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
|
|
$88,140
|
|
$90,051
|
|
$91,231
|
|
$69,398
|
|
$53,914
|
Secured by 1-4 family
residential properties
|
|
76,200
|
|
83,876
|
|
85,101
|
|
86,622
|
|
87,995
|
Secured by
multi-family residential properties
|
|
62,397
|
|
56,506
|
|
54,719
|
|
63,368
|
|
67,852
|
Secured by non-farm,
non-residential properties
|
|
213,586
|
|
199,116
|
|
204,270
|
|
198,266
|
|
200,156
|
Commercial and
industrial loans
|
|
60,515
|
|
59,369
|
|
60,568
|
|
65,708
|
|
73,546
|
Consumer
loans:
|
|
|
|
|
|
|
|
|
|
|
Direct
|
|
5,938
|
|
6,544
|
|
7,593
|
|
8,435
|
|
9,851
|
Branch
retail
|
|
8,670
|
|
9,648
|
|
10,830
|
|
12,222
|
|
13,992
|
Indirect
|
|
306,345
|
|
310,190
|
|
300,182
|
|
271,870
|
|
266,567
|
Total loans held for
investment
|
|
$821,791
|
|
$815,300
|
|
$814,494
|
|
$775,889
|
|
$773,873
|
Allowance for credit
losses
|
|
10,507
|
|
11,380
|
|
11,536
|
|
11,599
|
|
9,422
|
Net loans held for
investment
|
|
$811,284
|
|
$803,920
|
|
$802,958
|
|
$764,290
|
|
$764,451
|
Total loan volume increased by $6.5
million, or 0.8%, in 4Q2023. For the year ended December 31, 2023, total loans increased by
$47.9 million, or 6.2%. Loan volume
increases during 2023 were driven primarily by growth in indirect
consumer loans, commercial construction loans and non-farm,
non-residential real estate loans. Growth in indirect consumer
lending for the year was consistent with continued demand for the
products collateralized through the Company's indirect program,
including recreational vehicles, campers, boats, horse trailers and
cargo trailers. Indirect loan growth tends to be seasonal due
to its emphasis on outdoor recreational products, with growth
typically more pronounced in the spring and early summer months.
The increase in commercial construction (construction, land
development and other land loans) was primarily attributable to
continued growth in construction fundings on multi-family
residential projects. The increase in non-farm, non-residential
real estate was attributable to growth in the industrial category.
Loan growth during 2023 was partially offset by decreases in the
residential real estate and commercial and industrial categories,
as well as the direct consumer and branch retail consumer
categories. Loans in direct consumer and branch retail were
expected to decrease as they comprise the majority of ALC's
remaining loan balances.
Net Interest Income and Margin – Net interest income
decreased to $9.1 million in 4Q2023,
compared to $9.5 million in 3Q2023,
due to continued margin compression as interest-bearing liabilities
repriced at a faster pace than interest-bearing assets. Net
interest margin was 3.67% in 4Q2023, compared to 3.79% in 3Q2023.
For the year ended December 31, 2023,
net interest income totaled $37.4
million (net interest margin of 3.87%), compared to
$36.9 million (net interest margin of
4.07%) for the year ended December 31,
2022. Though margin compression persisted throughout 2023,
the year-over-year increase in net interest income was attributable
to growth in average loans comparing the two periods.
Deposit Growth – Core deposits, which exclude time
deposits of $250 thousand or more and
all wholesale brokered deposits, increased by $32.7 million during 4Q2023. Core deposits
totaled $819.5 million, or 86.2% of
total deposits, as of December 31,
2023, compared to $786.8
million, or 84.9% of total deposits, as of September 30, 2023, and $778.1 million, or 89.4% of total deposits as of
December 31, 2022. In total, deposits
increased by $23.2 million during
4Q2023 due primarily to growth in time deposits and money market
accounts, partially offset by the maturity of $10.0 million in brokered deposits. As of
December 31, 2023, deposits totaled
$950.2 million, compared to
$870.0 million as of December 31, 2022. The year-to-date growth
included an increase of $96.4 million
in interest bearing deposits, offset by a decrease of $16.2 million in noninterest-bearing deposits.
The shift to interest-bearing deposits in 2023 was consistent with
deposit holders seeking to maximize interest earnings on their
accounts as a result of the prevailing interest rate environment.
In addition, interest bearing deposit growth during the year ended
December 31, 2023 included net growth
of $20.2 million in brokered deposits
that were acquired in order to further enhance the Company's
liquidity position following the bank failures that occurred during
early 2023.
Deployment of Funds – Management seeks to deploy earning
assets in an efficient manner to maximize net interest income while
maintaining appropriate levels of liquidity to protect the safety
and soundness of the organization. Following the bank failures that
occurred in early 2023, management focused on maintaining and
growing the Company's strong liquidity position. These efforts
included holding higher levels of cash and cash equivalents and
Federal funds sold on the Company's balance sheet. Cash and cash
equivalents, combined with Federal funds sold, totaled $59.8 million as of December 31, 2023, compared to $67.3 million as of September 30, 2023, and $31.9 million as of December 31, 2022. Investment securities,
including both the available-for-sale and held-to-maturity
portfolios, totaled $136.7 million as
of December 31, 2023, compared to $127.8 million as of September 30, 2023, and $132.7 million as of December 31, 2022. The
expected average life of securities in the investment portfolio was
3.9 years as of December 31, 2023, compared to 3.5 years as of
December 31, 2022.
Provision for Credit Losses – The Company recorded a
negative provision for credit losses totaling $0.4 million during 4Q2023, compared to a
provision of $0.2 million during
3Q2023 and a provision of $0.5
million during 4Q2022. The negative provision in 4Q2023
resulted primarily from improvements in forecasted economic data,
as well as continued favorable charge-off results associated with
the diminishing legacy ALC loan portfolio. Credit loss provisioning
decreased significantly in 2023 compared to 2022 due to the
cessation of business strategy at ALC which resulted in reduced net
charge-offs as ALC's loans decreased. For the year ended
December 31, 2023, the provision for credit losses totaled
$0.3 million, compared to
$3.3 million for the year ended
December 31, 2022. The Company's net charge-offs totaled
$1.1 million in 2023, compared to
$2.2 million in 2022. Of these
amounts, ALC's loans contributed net charge-offs totaling
$0.2 million in 2023, compared to
$1.9 million in 2022. As of
December 31, 2023, the Company's
allowance for credit losses on loans as a percentage of total loans
was 1.28%, compared to 1.40% as of September
30, 2023 and 1.22% as of December
31, 2022. The allowance in 2023 was calculated under
the current expected credit loss (CECL) accounting model which was
adopted by the Company effective January
1, 2023.
Asset Quality – Nonperforming assets, including loans in
non-accrual status and OREO, totaled $3.0
million as of both December 31,
2023 and September 30, 2023,
and $2.3 million as of December 31, 2022. The year-over-year increase in
nonperforming assets resulted primarily from one commercial real
estate loan that moved into nonaccrual status during 3Q2023. As a
percentage of total assets, nonperforming assets totaled 0.28% as
of December 31, 2023, compared to
0.29% as of September 30, 2023 and
0.24% as of December 31, 2022. Net
charge-offs as a percentage of average loans was 0.19% during
4Q2023, compared to 0.10% during 3Q2023 and 0.25% during 4Q2022.
For the year ended December 31, 2023,
net charge-offs totaled 0.14%, compared to 0.30% for the year ended
December 31, 2022. The year-to-date
decrease in net charge-offs comparing 2023 to 2022 resulted
primarily from favorable trends on charge-off experience on legacy
ALC loans. Net charge-offs in 4Q2023 and full year 2023 were
primarily associated with the Company's consumer indirect
portfolio, and to a lesser extent, legacy ALC branch retail
loans.
Non-interest Income – Non-interest income totaled
$0.9 million in 4Q2023, compared to
$0.8 in 3Q2023, and $0.7 million in 4Q2022. For the year ended
December 31, 2023, non-interest income totaled $3.4 million, compared to $3.5 million for the year ended December 31,
2022. The reduction in year-to-date non-interest income in 2023
compared to 2022 resulted from gains on the sale of premises and
equipment that occurred during 2022, but were not repeated in
2023.
Non-interest Expense – Non-interest expense totaled
$7.4 million in 4Q2023, compared to
$7.3 million in 3Q2023, and
$7.1 million in 4Q2022. For the
year ended December 31, 2023, non-interest expense totaled
$29.1 million, compared to
$28.1 million for the year ended
December 31, 2022. Comparing 4Q2023 to both 3Q2023 and 4Q2022,
the increase resulted primarily from check fraud
losses totaling $0.2 million
associated with the Bank's deposit customers. The increase
comparing full year 2023 to 2022 resulted from the check
fraud losses, combined with nonrecurring gains on the
sale of OREO properties that offset non-interest expense in 2022,
but were not repeated in 2023, and increases in various other
miscellaneous expenses. The increase in total non-interest
expense comparing 2023 to 2022 was partially offset by a decrease
in salaries and benefits totaling $0.3
million. This reduction was due primarily to the
ongoing efficiencies gained from the ALC cessation of business
strategic initiative.
Shareholders' Equity – As of December 31, 2023,
shareholders' equity totaled $90.6
million, or 8.4% of total assets, compared to $85.1 million, or 8.6% of total assets, as of
December 31, 2022. The increase in shareholders' equity during
the year resulted primarily from earnings, net of dividends paid,
combined with valuation increases in the Company's
available-for-sale investment portfolio that reduced accumulated
other comprehensive loss. The increase in shareholders' equity
during the year was partially offset by the CECL transition
adjustment in the first quarter of 2023, which reduced retained
earnings by $1.8 million, net of tax,
as well as a decrease of $1.4 million
associated with share repurchases As of December 31,
2023, the Company's ratio of common equity to total assets was
8.44%, compared to 8.56% as of December 31, 2022, while the
Company's ratio of tangible common equity to tangible assets was
7.79% as of December 31, 2023,
compared to 7.84% as of December 31, 2022.
Cash Dividend – The Company declared a cash dividend of
$0.05 per share on its common stock
in 4Q2023, consistent with the previous three quarters of 2023, and
the fourth quarter of 2022. Cash dividends totaled $0.20 per share for the year ended December 31, 2023, compared to $0.14 per common share for the year ended
December 31, 2022.
Share Repurchases - During 4Q2023, the Company
completed the repurchase of 137,500 shares of its common stock at a
price of $10.34 per share. The
repurchase was completed under the Company's previously announced
share repurchase program. As of December 31, 2023, 459,313 shares remained
available for repurchase under the program.
Regulatory Capital – During 4Q2023, 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, 2023, the Bank's
common equity Tier 1 capital and Tier 1 risk-based capital ratios
were each 10.88%, its total capital ratio was 12.11%, and its Tier
1 leverage ratio was 9.36%.
Liquidity – As of December 31, 2023, the
Company continued to maintain excess 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, Federal Home Loan Bank (FHLB) advances and brokered
deposits. In addition, the Company has access to the Federal
Reserve Bank's (FRB) discount window and its Bank Term Funding
Program (BTFP), the latter of which was established during 2023 in
response to the liquidity events that occurred in the banking
industry. Both the discount window and the BTFP allow borrowing on
pledged collateral that includes eligible investment securities and
loans. The discount window allows borrowing under 90-day terms,
while borrowing terms under the BTFP are up to one year. The BTFP
also allows investment securities to be pledged as collateral at
100% of par value when par value is greater than fair value.
Excluding wholesale brokered deposits, as of December 31, 2023, the Company had approximately
29 thousand deposit accounts with an average balance of
approximately $29.8 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
$200.3 million, or 21.1% of total
deposits, as of December 31, 2023. As
of December 31, 2022, estimated
uninsured deposits totaled $148.3
million, or 17.1% of total deposits.
In response to heightened liquidity concerns in the banking
industry during 2023, management undertook measures designed to
enhance the Company's liquidity position. These procedures included
holding higher levels of on-balance sheet cash, as well as
enhancing the availability of off-balance sheet borrowing capacity.
As part of these efforts, during 3Q2023, the Company completed the
establishment of additional borrowing capacity through the FRB's
discount window, primarily via the pledging of the majority of the
Company's indirect loan portfolio as collateral. Due to these
efforts, the Company's immediate borrowing capacity, based on
collateral pledged through the discount window, increased to
$161.7 million as of December 31, 2023, compared to $1.2 million as of December 31, 2022.
The table below provides information on the Company's on-balance
sheet liquidity, as well as readily available sources of liquidity
as of both December 31, 2023 and December 31, 2022.
|
December 31,
2023
|
|
|
December 31,
2022
|
|
|
(Dollars in
Thousands)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Liquidity from cash and
federal funds sold:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
50,279
|
|
|
$
|
30,152
|
|
Federal funds
sold
|
|
9,475
|
|
|
|
1,768
|
|
Liquidity from cash
and federal funds sold
|
|
59,754
|
|
|
|
31,920
|
|
Liquidity from
pledgable investment securities:
|
|
|
|
|
|
Investment securities
available-for sale, at fair value
|
|
135,565
|
|
|
|
130,795
|
|
Investment securities
held-to-maturity, at amortized cost
|
|
1,104
|
|
|
|
1,862
|
|
Less: securities
pledged
|
|
(41,375)
|
|
|
|
(54,717)
|
|
Less: estimated
collateral value discounts
|
|
(11,129)
|
|
|
|
(7,833)
|
|
Liquidity from
pledgable investment securities
|
|
84,165
|
|
|
|
70,107
|
|
Liquidity from unused
lendable collateral (loans) at FHLB
|
|
21,696
|
|
|
|
18,215
|
|
Liquidity from unused
lendable collateral (loans and securities) at FRB
|
|
161,729
|
|
|
|
1,198
|
|
Unsecured lines of
credit with banks
|
|
48,000
|
|
|
|
45,000
|
|
Total readily
available liquidity
|
$
|
375,344
|
|
|
$
|
166,440
|
|
The table calculates readily available sources of liquidity,
including cash and cash equivalents, federal funds sold, and other
liquidity sources. Certain of the measures have not been
prepared in accordance with U.S. generally accepted accounting
principles ("GAAP"); however, management believes that the non-GAAP
measures are beneficial to the reader as they enhance the overall
understanding of the Company's liquidity position and can be used
as a supplement to GAAP-based measures of liquidity. Specifically,
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-for-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 represents total
investment securities as recorded on the balance sheet, less
reductions for securities already pledged and discounts expected to
be taken by the lender to determine collateral value. The
calculations are intended to reflect minimum levels of liquidity
readily available to the Company through the pledging of investment
securities, and do not contemplate the additional available
liquidity that could be available from the FRB through the
BTFP.
Other readily available sources of liquidity include unused
collateral in the form of loans that the Company had pledged with
the FHLB, as well as unsecured lines of credit with other banks.
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 balance sheet date presented. As of December 31, 2023 and
December 31, 2022, the Company's
total remaining credit availability with the FHLB was $279.4 million and $246.8
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.
For example, the Company has 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.
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 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 discontinuation of LIBOR as an interest rate
benchmark; 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 and the Company's Quarterly Report on Form 10-Q
for the fiscal quarter ended September 30,
2023. 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, 2023 AND 2022
(Dollars in
Thousands)
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
803,407
|
|
|
$
|
12,419
|
|
|
|
6.13
|
%
|
|
$
|
759,128
|
|
|
$
|
10,676
|
|
|
|
5.58
|
%
|
Taxable investment
securities
|
|
|
131,547
|
|
|
|
825
|
|
|
|
2.49
|
%
|
|
|
137,894
|
|
|
|
736
|
|
|
|
2.12
|
%
|
Tax-exempt investment
securities
|
|
|
1,026
|
|
|
|
3
|
|
|
|
1.16
|
%
|
|
|
1,746
|
|
|
|
5
|
|
|
|
1.14
|
%
|
Federal Home Loan Bank
stock
|
|
|
1,015
|
|
|
|
18
|
|
|
|
7.04
|
%
|
|
|
1,491
|
|
|
|
20
|
|
|
|
5.32
|
%
|
Federal funds
sold
|
|
|
4,579
|
|
|
|
63
|
|
|
|
5.46
|
%
|
|
|
995
|
|
|
|
10
|
|
|
|
3.99
|
%
|
Interest-bearing
deposits in banks
|
|
|
44,574
|
|
|
|
617
|
|
|
|
5.49
|
%
|
|
|
18,340
|
|
|
|
174
|
|
|
|
3.76
|
%
|
Total interest-earning
assets
|
|
|
986,148
|
|
|
|
13,945
|
|
|
|
5.61
|
%
|
|
|
919,594
|
|
|
|
11,621
|
|
|
|
5.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
64,530
|
|
|
|
|
|
|
|
|
|
66,369
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,050,678
|
|
|
|
|
|
|
|
|
$
|
985,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
198,846
|
|
|
|
221
|
|
|
|
0.44
|
%
|
|
$
|
237,049
|
|
|
|
200
|
|
|
|
0.33
|
%
|
Savings
deposits
|
|
|
250,322
|
|
|
|
1,728
|
|
|
|
2.74
|
%
|
|
|
215,728
|
|
|
|
510
|
|
|
|
0.94
|
%
|
Time
deposits
|
|
|
330,003
|
|
|
|
2,720
|
|
|
|
3.27
|
%
|
|
|
224,373
|
|
|
|
708
|
|
|
|
1.25
|
%
|
Total interest-bearing
deposits
|
|
|
779,171
|
|
|
|
4,669
|
|
|
|
2.38
|
%
|
|
|
677,150
|
|
|
|
1,418
|
|
|
|
0.83
|
%
|
Noninterest-bearing
demand deposits
|
|
|
156,189
|
|
|
|
—
|
|
|
|
—
|
|
|
|
179,568
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
935,360
|
|
|
|
4,669
|
|
|
|
1.98
|
%
|
|
|
856,718
|
|
|
|
1,418
|
|
|
|
0.66
|
%
|
Borrowings
|
|
|
16,986
|
|
|
|
166
|
|
|
|
3.88
|
%
|
|
|
36,144
|
|
|
|
312
|
|
|
|
3.42
|
%
|
Total funding
costs
|
|
|
952,346
|
|
|
|
4,835
|
|
|
|
2.01
|
%
|
|
|
892,862
|
|
|
|
1,730
|
|
|
|
0.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
10,717
|
|
|
|
|
|
|
|
|
|
9,711
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
87,615
|
|
|
|
|
|
|
|
|
|
83,390
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,050,678
|
|
|
|
|
|
|
|
|
$
|
985,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
9,110
|
|
|
|
|
|
|
|
|
$
|
9,891
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
3.67
|
%
|
|
|
|
|
|
|
|
|
4.27
|
%
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
NET INTEREST MARGIN
YEAR ENDED
DECEMBER 31, 2023 AND 2022
(Dollars in
Thousands)
(Unaudited)
|
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
|
Average
Balance
|
|
|
Interest
|
|
|
Annualized
Yield/
Rate %
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
795,446
|
|
|
$
|
47,749
|
|
|
|
6.00
|
%
|
|
$
|
724,639
|
|
|
$
|
38,015
|
|
|
|
5.25
|
%
|
Taxable investment
securities
|
|
|
127,653
|
|
|
|
2,858
|
|
|
|
2.24
|
%
|
|
|
141,283
|
|
|
|
2,632
|
|
|
|
1.86
|
%
|
Tax-exempt investment
securities
|
|
|
1,042
|
|
|
|
13
|
|
|
|
1.25
|
%
|
|
|
2,342
|
|
|
|
36
|
|
|
|
1.54
|
%
|
Federal Home Loan Bank
stock
|
|
|
1,264
|
|
|
|
93
|
|
|
|
7.36
|
%
|
|
|
1,247
|
|
|
|
53
|
|
|
|
4.25
|
%
|
Federal funds
sold
|
|
|
1,841
|
|
|
|
95
|
|
|
|
5.16
|
%
|
|
|
584
|
|
|
|
22
|
|
|
|
3.77
|
%
|
Interest-bearing
deposits in banks
|
|
|
38,111
|
|
|
|
1,998
|
|
|
|
5.24
|
%
|
|
|
38,379
|
|
|
|
439
|
|
|
|
1.14
|
%
|
Total interest-earning
assets
|
|
|
965,357
|
|
|
|
52,806
|
|
|
|
5.47
|
%
|
|
|
908,474
|
|
|
|
41,197
|
|
|
|
4.53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
63,765
|
|
|
|
|
|
|
|
|
|
65,855
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,029,122
|
|
|
|
|
|
|
|
|
$
|
974,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
212,010
|
|
|
|
777
|
|
|
|
0.37
|
%
|
|
$
|
246,124
|
|
|
|
638
|
|
|
|
0.26
|
%
|
Savings
deposits
|
|
|
229,238
|
|
|
|
5,007
|
|
|
|
2.18
|
%
|
|
|
208,672
|
|
|
|
1,204
|
|
|
|
0.58
|
%
|
Time
deposits
|
|
|
305,848
|
|
|
|
8,566
|
|
|
|
2.80
|
%
|
|
|
212,591
|
|
|
|
1,540
|
|
|
|
0.72
|
%
|
Total interest-bearing
deposits
|
|
|
747,096
|
|
|
|
14,350
|
|
|
|
1.92
|
%
|
|
|
667,387
|
|
|
|
3,382
|
|
|
|
0.51
|
%
|
Noninterest-bearing
demand deposits
|
|
|
160,598
|
|
|
|
—
|
|
|
|
—
|
|
|
|
182,032
|
|
|
|
—
|
|
|
|
—
|
|
Total
deposits
|
|
|
907,694
|
|
|
|
14,350
|
|
|
|
1.58
|
%
|
|
|
849,419
|
|
|
|
3,382
|
|
|
|
0.40
|
%
|
Borrowings
|
|
|
26,252
|
|
|
|
1,106
|
|
|
|
4.21
|
%
|
|
|
30,048
|
|
|
|
874
|
|
|
|
2.91
|
%
|
Total funding
costs
|
|
|
933,946
|
|
|
|
15,456
|
|
|
|
1.65
|
%
|
|
|
879,467
|
|
|
|
4,256
|
|
|
|
0.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
|
9,302
|
|
|
|
|
|
|
|
|
|
8,977
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
85,874
|
|
|
|
|
|
|
|
|
|
85,885
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,029,122
|
|
|
|
|
|
|
|
|
$
|
974,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
37,350
|
|
|
|
|
|
|
|
|
$
|
36,941
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
|
|
|
3.87
|
%
|
|
|
|
|
|
|
|
|
4.07
|
%
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
YEAR-END CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
Cash and due from
banks
|
|
$
|
12,987
|
|
|
$
|
11,844
|
|
Interest-bearing
deposits in banks
|
|
|
37,292
|
|
|
|
18,308
|
|
Total cash and cash
equivalents
|
|
|
50,279
|
|
|
|
30,152
|
|
Federal funds
sold
|
|
|
9,475
|
|
|
|
1,768
|
|
Investment securities
available-for-sale, at fair value
|
|
|
135,565
|
|
|
|
130,795
|
|
Investment securities
held-to-maturity, at amortized cost
|
|
|
1,104
|
|
|
|
1,862
|
|
Federal Home Loan Bank
stock, at cost
|
|
|
1,201
|
|
|
|
1,359
|
|
Loans held for
investment
|
|
|
821,791
|
|
|
|
773,873
|
|
Less allowance for
credit losses
|
|
|
10,507
|
|
|
|
9,422
|
|
Net loans held for
investment
|
|
|
811,284
|
|
|
|
764,451
|
|
Premises and equipment,
net of accumulated depreciation
|
|
|
24,398
|
|
|
|
24,439
|
|
Cash surrender value of
bank-owned life insurance
|
|
|
16,702
|
|
|
|
16,399
|
|
Accrued interest
receivable
|
|
|
3,976
|
|
|
|
3,011
|
|
Goodwill and core
deposit intangible, net
|
|
|
7,606
|
|
|
|
7,801
|
|
Other real estate
owned
|
|
|
602
|
|
|
|
686
|
|
Other assets
|
|
|
10,748
|
|
|
|
11,944
|
|
Total
assets
|
|
$
|
1,072,940
|
|
|
$
|
994,667
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest-bearing
|
|
$
|
153,591
|
|
|
$
|
169,822
|
|
Interest-bearing
|
|
|
796,600
|
|
|
|
700,203
|
|
Total
deposits
|
|
|
950,191
|
|
|
|
870,025
|
|
Accrued interest
expense
|
|
|
2,030
|
|
|
|
607
|
|
Other
liabilities
|
|
|
9,327
|
|
|
|
8,136
|
|
Short-term
borrowings
|
|
|
10,000
|
|
|
|
20,038
|
|
Long-term
borrowings
|
|
|
10,799
|
|
|
|
10,726
|
|
Total
liabilities
|
|
|
982,347
|
|
|
|
909,532
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common stock, par value
$0.01 per share, 10,000,000 shares authorized; 7,738,201 and
7,680,856 shares issued, respectively; 5,735,075
and 5,812,258 shares outstanding,
respectively
|
|
|
75
|
|
|
|
75
|
|
Additional paid-in
capital
|
|
|
14,972
|
|
|
|
14,510
|
|
Accumulated other
comprehensive loss, net of tax
|
|
|
(6,431)
|
|
|
|
(7,241)
|
|
Retained
earnings
|
|
|
109,959
|
|
|
|
104,460
|
|
Less treasury stock:
2,003,126 and 1,868,598 shares at cost, respectively
|
|
|
(27,982)
|
|
|
|
(26,669)
|
|
Total shareholders'
equity
|
|
|
90,593
|
|
|
|
85,135
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,072,940
|
|
|
$
|
994,667
|
|
FIRST US BANCSHARES,
INC. AND SUBSIDIARIES
INTERIM AND YEAR-END
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in
Thousands, Except Per Share Data)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
12,419
|
|
|
$
|
10,676
|
|
|
$
|
47,749
|
|
|
$
|
38,015
|
|
Interest on investment
securities
|
|
|
828
|
|
|
|
741
|
|
|
|
2,871
|
|
|
|
2,668
|
|
Interest on deposits
in banks
|
|
|
617
|
|
|
|
174
|
|
|
|
1,998
|
|
|
|
439
|
|
Other
|
|
|
81
|
|
|
|
30
|
|
|
|
188
|
|
|
|
75
|
|
Total interest
income
|
|
|
13,945
|
|
|
|
11,621
|
|
|
|
52,806
|
|
|
|
41,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
4,669
|
|
|
|
1,418
|
|
|
|
14,350
|
|
|
|
3,382
|
|
Interest on
borrowings
|
|
|
166
|
|
|
|
312
|
|
|
|
1,106
|
|
|
|
874
|
|
Total interest
expense
|
|
|
4,835
|
|
|
|
1,730
|
|
|
|
15,456
|
|
|
|
4,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
9,110
|
|
|
|
9,891
|
|
|
|
37,350
|
|
|
|
36,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
|
|
(434)
|
|
|
|
527
|
|
|
|
319
|
|
|
|
3,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after provision for (recovery of) credit losses
|
|
|
9,544
|
|
|
|
9,364
|
|
|
|
37,031
|
|
|
|
33,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
charges on deposit accounts
|
|
|
328
|
|
|
|
250
|
|
|
|
1,197
|
|
|
|
1,154
|
|
Lease
income
|
|
|
242
|
|
|
|
229
|
|
|
|
949
|
|
|
|
864
|
|
Other income,
net
|
|
|
346
|
|
|
|
199
|
|
|
|
1,235
|
|
|
|
1,433
|
|
Total non-interest
income
|
|
|
916
|
|
|
|
678
|
|
|
|
3,381
|
|
|
|
3,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
3,766
|
|
|
|
4,029
|
|
|
|
16,076
|
|
|
|
16,418
|
|
Net occupancy and
equipment
|
|
|
854
|
|
|
|
813
|
|
|
|
3,479
|
|
|
|
3,281
|
|
Computer
services
|
|
|
441
|
|
|
|
415
|
|
|
|
1,756
|
|
|
|
1,639
|
|
Insurance expense and
assessments
|
|
|
427
|
|
|
|
280
|
|
|
|
1,583
|
|
|
|
1,250
|
|
Fees for professional
services
|
|
|
370
|
|
|
|
249
|
|
|
|
1,105
|
|
|
|
1,060
|
|
Other
expense
|
|
|
1,543
|
|
|
|
1,320
|
|
|
|
5,142
|
|
|
|
4,424
|
|
Total non-interest
expense
|
|
|
7,401
|
|
|
|
7,106
|
|
|
|
29,141
|
|
|
|
28,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
3,059
|
|
|
|
2,936
|
|
|
|
11,271
|
|
|
|
9,012
|
|
Provision for income
taxes
|
|
|
782
|
|
|
|
708
|
|
|
|
2,786
|
|
|
|
2,148
|
|
Net income
|
|
$
|
2,277
|
|
|
$
|
2,228
|
|
|
$
|
8,485
|
|
|
$
|
6,864
|
|
Basic net income per
share
|
|
$
|
0.38
|
|
|
$
|
0.37
|
|
|
$
|
1.42
|
|
|
$
|
1.13
|
|
Diluted net income per
share
|
|
$
|
0.36
|
|
|
$
|
0.35
|
|
|
$
|
1.33
|
|
|
$
|
1.06
|
|
Dividends per
share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.20
|
|
|
$
|
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 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.
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
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
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
|
|
|
|
$1,072,940
|
|
$1,065,239
|
|
$1,068,126
|
|
$1,026,658
|
|
$994,667
|
|
|
|
|
Less:
Goodwill
|
|
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
|
|
|
Less: Core deposit
intangible
|
|
|
|
171
|
|
207
|
|
256
|
|
311
|
|
366
|
|
|
|
|
Tangible
assets
|
|
(a)
|
|
$1,065,334
|
|
$1,057,597
|
|
$1,060,435
|
|
$1,018,912
|
|
$986,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
$90,593
|
|
$87,408
|
|
$85,725
|
|
$84,757
|
|
$85,135
|
|
|
|
|
Less:
Goodwill
|
|
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
|
|
|
Less: Core deposit
intangible
|
|
|
|
171
|
|
207
|
|
256
|
|
311
|
|
366
|
|
|
|
|
Tangible common
equity
|
|
(b)
|
|
$82,987
|
|
$79,766
|
|
$78,034
|
|
$77,011
|
|
$77,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
|
$87,615
|
|
$86,897
|
|
$85,660
|
|
$83,837
|
|
$83,390
|
|
$85,874
|
|
$85,885
|
Less: Average
goodwill
|
|
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
|
7,435
|
Less: Average core
deposit intangible
|
|
|
|
188
|
|
229
|
|
282
|
|
337
|
|
392
|
|
259
|
|
490
|
Average tangible
shareholders' equity
|
|
(c)
|
|
$79,992
|
|
$79,233
|
|
$77,943
|
|
$76,065
|
|
$75,563
|
|
$78,180
|
|
$77,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
(d)
|
|
$2,277
|
|
$2,113
|
|
$2,023
|
|
$2,072
|
|
$2,228
|
|
$8,485
|
|
$6,864
|
Common shares
outstanding (in thousands)
|
|
(e)
|
|
5,735
|
|
5,875
|
|
5,875
|
|
5,867
|
|
5,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE
MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
(b)/(e)
|
|
$14.47
|
|
$13.58
|
|
$13.28
|
|
$13.13
|
|
$13.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
|
(b)/(a)
|
|
7.79 %
|
|
7.54 %
|
|
7.36 %
|
|
7.56 %
|
|
7.84 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (annualized)
|
|
(1)
|
|
11.29 %
|
|
10.58 %
|
|
10.41 %
|
|
11.05 %
|
|
11.70 %
|
|
10.85 %
|
|
8.80 %
|
|
|
(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-25-5-year-over-year-diluted-eps-growth-302045061.html
SOURCE First US Bancshares, Inc.