First US Bancshares, Inc. Reports Third Quarter and Year-to-Date Earnings: Nine-month Diluted EPS Growth of $0.07 Over 2023
BIRMINGHAM, Ala., Oct. 24, 2024 /PRNewswire/ -- Third Quarter Highlights:
Net Income
Diluted Earnings per share
Return on average assets(annualized)
Return on average commonequity (annualized)
Return on average tangiblecommon equity (annualized)(1)
Loans to deposits
$2.2 million
$0.36
0.82 %
9.21 %
9.99 %
81.9 %
First US Bancshares, Inc. (NASDAQ:FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $2.2 million, or $0.36 per diluted share, for the quarter ended September 30, 2024 ("3Q2024"), compared to $2.1 million, or $0.34 per diluted share, for the quarter ended June 30, 2024 ("2Q2024") and $2.1 million, or $0.33 per diluted share, for the quarter ended September 30, 2023 ("3Q2023"). For the nine months ended September 30, 2024, net income totaled $6.5 million, or $1.04 per diluted share, compared to $6.2 million, or $0.97 per diluted share for the nine months ended September 30, 2023.
The table below summarizes selected financial data for each of the periods presented.
Quarter Ended
Nine Months Ended
2024
2023
2024
2023
September30,
June30,
March31,
December31,
September30,
September30,
September30,
Results of Operations:
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Interest income
$
15,017
$
14,546
$
14,277
$
13,945
$
13,902
$
43,840
$
38,861
Interest expense
5,832
5,370
5,237
4,835
4,419
16,439
10,621
Net interest income
9,185
9,176
9,040
9,110
9,483
27,401
28,240
Provision for (recovery of) credit losses
152
-
-
(434)
184
152
753
Net interest income after provision for (recovery of) credit losses
9,033
9,176
9,040
9,544
9,299
27,249
27,487
Non-interest income
901
835
865
916
837
2,601
2,465
Non-interest expense
6,990
7,272
7,147
7,401
7,319
21,409
21,740
Income before income taxes
2,944
2,739
2,758
3,059
2,817
8,441
8,212
Provision for income taxes
722
612
651
782
704
1,985
2,004
Net income
$
2,222
$
2,127
$
2,107
$
2,277
$
2,113
$
6,456
$
6,208
Per Share Data:
Basic net income per share
$
0.38
$
0.36
$
0.36
$
0.38
$
0.35
$
1.10
$
1.04
Diluted net income per share
$
0.36
$
0.34
$
0.34
$
0.36
$
0.33
$
1.04
$
0.97
Dividends declared
$
0.05
$
0.05
$
0.05
$
0.05
$
0.05
$
0.15
$
0.15
Key Measures (Period End):
Total assets
$
1,100,235
$
1,083,313
$
1,070,541
$
1,072,940
$
1,065,239
Tangible assets (1)
1,092,733
1,075,781
1,062,972
1,065,334
1,057,597
Total loans
803,308
819,126
822,941
821,791
815,300
Allowance for credit losses ("ACL") on loans and leases
10,116
10,227
10,436
10,507
11,380
Investment securities, net
145,044
144,876
126,363
136,669
127,823
Total deposits
981,149
954,455
943,268
950,191
927,038
Short-term borrowings
-
15,000
15,000
10,000
30,000
Long-term borrowings
10,854
10,836
10,817
10,799
10,781
Total shareholders' equity
98,491
93,836
92,326
90,593
87,408
Tangible common equity (1)
90,989
86,304
84,757
82,987
79,766
Book value per common share
17.23
16.34
15.95
15.80
14.88
Tangible book value per common share (1)
15.92
15.03
14.65
14.47
13.58
Key Ratios:
Return on average assets (annualized)
0.82
%
0.80
%
0.80
%
0.86
%
0.80
%
0.81
%
0.81
%
Return on average common equity (annualized)
9.21
%
9.23
%
9.25
%
10.31
%
9.65
%
9.23
%
9.71
%
Return on average tangible common equity (annualized) (1)
9.99
%
10.05
%
10.08
%
11.29
%
10.58
%
10.04
%
10.67
%
Net interest margin
3.60
%
3.69
%
3.65
%
3.67
%
3.79
%
3.65
%
3.93
%
Efficiency ratio (2)
69.3
%
72.6
%
72.2
%
73.8
%
70.9
%
71.4
%
70.8
%
Total loans to deposits
81.9
%
85.8
%
87.2
%
86.5
%
87.9
%
Total loans to assets
73.0
%
75.6
%
76.9
%
76.6
%
76.5
%
Common equity to total assets
8.95
%
8.66
%
8.62
%
8.44
%
8.21
%
Tangible common equity to tangible assets (1)
8.33
%
8.02
%
7.97
%
7.79
%
7.54
%
Tier 1 leverage ratio (3)
9.49
%
9.46
%
9.37
%
9.36
%
9.09
%
ACL on loans and leases as % of total loans
1.26
%
1.25
%
1.27
%
1.28
%
1.40
%
Nonperforming assets as % of total assets
0.60
%
0.27
%
0.28
%
0.28
%
0.29
%
Net charge-offs as a percentage of average loans
0.12
%
0.10
%
0.09
%
0.19
%
0.10
%
0.10
%
0.12
%
(1) Refer to Non-GAAP reconciliation of tangible balances and measures beginning on page 10.
(2) Efficiency ratio = non-interest expense / (net interest income + non-interest income)
(3) First US Bank Tier 1 leverage ratio
CEO Commentary
"We are pleased to report continued improvement in earnings per share, as well as a balance sheet poised for growth," stated James F. House, President and CEO of the Company. "Although loan growth has not developed this year, market volatility has provided opportunities to strengthen the Company's balance sheet, and we have capitalized on those opportunities. This includes both the deployment of funds into favorably yielding investment securities, as well as strategies aimed at reducing interest expense over time. Our team remains focused on sound and prudent growth that will further enhance our balance sheet positioning and lead to even stronger profitability," 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
September30,
June30,
March31,
December31,
September30,
(Dollars in Thousands)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Real estate loans:
Construction, land development and other land loans
$53,098
$72,183
$102,282
$88,140
$90,051
Secured by 1-4 family residential properties
70,067
70,272
74,361
76,200
83,876
Secured by multi-family residential properties
100,627
97,527
62,145
62,397
56,506
Secured by non-farm, non-residential properties
224,611
218,386
212,465
213,586
199,116
Commercial and industrial loans
44,872
46,249
57,112
60,515
59,369
Consumer loans:
Direct
5,018
5,272
5,590
5,938
6,544
Branch retail
6,233
6,879
7,794
8,670
9,648
Indirect
298,782
302,358
301,192
306,345
310,190
Total loans and leases held for investment
$803,308
$819,126
$822,941
$821,791
$815,300
Allowance for credit losses on loans and leases
10,116
10,227
10,436
10,507
11,380
Net loans and leases held for investment
$793,192
$808,899
$812,505
$811,284
$803,920
Total loan volume decreased by $15.8 million, or 1.9%, in 3Q2024, driven primarily by payoffs of construction loans, and to a lesser extent, reductions in the consumer indirect and commercial and industrial ("C&I") loan categories. These reductions were partially offset by growth in commercial real estate (non-farm, non-residential) and multi-family ...
