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First Us Bancshares, Inc. (FUSB) SEC Filing 8-K Material Event for the period ending Wednesday, July 27, 2022

First Us Bancshares Inc

CIK: 717806 Ticker: FUSB

 

Exhibit 99.1

 

img154360647_0.jpg 

 

 

FIRST US BANCSHARES, INC.

REPORTS SECOND QUARTER 2022 RESULTS

────────

Reports 45.9% Year-to-Date Earnings Growth Driven by Continued Expense Reduction

 

BIRMINGHAM, AL (July 27, 2022) – First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”), today reported net income of $1.4 million, or $0.22 per diluted share, for the quarter ended June 30, 2022 (“2Q2022”), compared to $1.0 million, or $0.14 per diluted share, for the quarter ended June 30, 2021 (“2Q2021”) and $1.4 million, or $0.20 per diluted share, for the quarter ended March 31, 2022 (“1Q2022”). Net income totaled $2.8 million for the six months ended June 30, 2022, compared to $1.9 million for the six months ended June 30, 2021, an increase of 45.9%. Diluted earnings per share totaled $0.42 for the six months ended June 30, 2022, compared to $0.28 per diluted share during the corresponding period of 2021.

 

Earnings improvement, comparing both 2Q2022 and the first six months of 2022 to corresponding periods in 2021, was driven primarily by reductions in non-interest expense following strategic initiatives that were initiated by the Company beginning in the third quarter of 2021. The strategic initiatives included the cessation of new business development at the Bank’s wholly owned subsidiary, Acceptance Loan Company, Inc. (“ALC”), as well as efforts to reorganize the Bank’s retail banking, technology and deposit operations functions. Due to these efforts, non-interest expense was reduced by $1.5 million, or 18.1%, comparing 2Q2022 to 2Q2021 and by $2.9 million, or 17.0%, comparing the six months ended June 30, 2022, to the six months ended June 30, 2021. Comparing 2Q2022 to 1Q2022, non-interest expense decreased by $0.2 million, or 2.5%.

 

“We are pleased to post a solid quarter of growth in loans and earnings per share,” stated James F. House, the Company’s President and CEO. “Our strategic focus on business simplification has been transformative for our Company. This emphasis, combined with a focus on loan and deposit pricing discipline and cost control, have led to solid improvement in operating efficiencies over the last three quarters. In addition, our continued focus on credit quality in our lending practices has further strengthened our balance sheet. Though a heightened level of economic and geopolitical concern certainly exists, we believe our Company is well-prepared to weather future challenges as they are presented,” continued Mr. House.

 

Other Second Quarter Financial Highlights

 

Loan Growth – The table below summarizes loan balances by portfolio category at the end of each of the most recent five quarters as of June 30, 2022.

 

 

Quarter Ended

 

 

 

2022

 

 

2021

 

 

 

June
30,

 

 

March
31,

 

 

December
31,

 

 

September
30,

 

 

June
30,

 

 

 

(Dollars in Thousands)

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

40,625

 

 

$

52,817

 

 

$

67,048

 

 

$

58,175

 

 

$

53,425

 

Secured by 1-4 family residential properties

 

 

69,098

 

 

 

69,760

 

 

 

72,727

 

 

 

73,112

 

 

 

78,815

 

Secured by multi-family residential properties

 

 

66,848

 

 

 

50,796

 

 

 

46,000

 

 

 

51,420

 

 

 

53,811

 

Secured by non-farm, non-residential properties

 

 

187,041

 

 

 

177,752

 

 

 

197,901

 

 

 

198,745

 

 

 

191,398

 

Commercial and industrial loans

 

 

65,792

 

 

 

67,455

 

 

 

72,286

 

 

 

73,777

 

 

 

65,772

 

Paycheck Protection Program ("PPP") loans

 

 

116

 

 

 

643

 

 

 

1,661

 

 

 

3,902

 

 

 

11,587

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct consumer

 

 

15,419

 

 

 

18,023

 

 

 

21,689

 

 

 

25,845

 

 

 

26,937

 

Branch retail

 

 

18,634

 

 

 

21,891

 

 

 

25,692

 

 

 

29,764

 

 

 

31,688

 

Indirect sales

 

 

252,206

 

 

 

220,931

 

 

 

205,940

 

 

 

194,154

 

 

 

176,116

 

Total loans

 

$

715,779

 

 

$

680,068

 

 

$

710,944

 

 

$

708,894

 

 

$

689,549

 

Less unearned interest, fees and deferred costs

 

 

1,142

 

 

 

1,738

 

 

 

2,594

 

 

 

3,729

 

 

 

4,067

 

Allowance for loan and lease losses

 

 

8,751

 

 

 

8,484

 

 

 

8,320

 

 

 

8,193

 

 

 

7,726

 

Net loans

 

$

705,886

 

 

$

669,846

 

 

$

700,030

 

 

$

696,972

 

 

$

677,756

 

 

 


 

First US Bancshares, Inc. Reports Second Quarter 2022 Results

July 27, 2022

 

 

The Company’s total loan portfolio increased by $35.7 million, or 5.3%, during 2Q2022. Loan volume increases were due to growth in the Bank’s indirect, multi-family residential and commercial real estate (secured by non-farm, non-residential properties) categories. Growth in these categories was consistent with continued growth in consumer spending and robust economic activity, particularly in the larger metropolitan markets the Bank serves. Loan growth was partially offset by decreases in the construction, commercial and industrial, direct consumer, and branch retail categories. The decreases in direct consumer and branch retail loans were consistent with management’s expectations related to the Company’s business cessation strategy at ALC. As of June 30, 2022, loans totaled $715.8 million, an increase of $4.8 million, or 0.7%, since December 31, 2021.

 

Net Interest Income and Margin – Net interest income totaled $8.8 million in 2Q2022, compared to $9.3 million in 2Q2021 and $8.7 million in 1Q2022. For the six months ended June 30, 2022, net interest income totaled $17.5 million, compared to $18.4 million for the six months ended June 30, 2021. Compared to both prior periods, the decrease in net interest income was primarily attributable to reductions in interest and fees on ALC loans in connection with the ALC cessation of business strategy. Interest and fees on ALC loans decreased in 2Q2022 by $1.0 million, compared to 2Q2021, and by $1.9 million comparing the six months ended June 30, 2022 to the corresponding period of 2021. The decreases were partially offset by interest income in the Bank’s other earning asset categories, which increased by $0.5 million on a net basis, comparing 2Q2022 to 2Q2021, and by $0.9 million, comparing the six months ended June 30, 2022 to the six months ended June 30, 2021. As ALC’s loan portfolio continues to pay down, there will be continued reduction in interest and fees attributable to ALC’s loans. These reductions are expected to continue to put downward pressure on total loan yield and net interest margin. As a result of the changing mix of earning assets, the Company’s net interest margin was reduced to 3.91% in 2Q2022, compared to 4.31% in 2Q2021. For the six months ended June 30, 2022, net interest margin was 3.94%, compared to 4.35% for the six months ended June 30, 2021. Though net interest income and margin are expected to decrease as a result of the cessation of business strategy at ALC, significant expense savings have developed, or are expected to develop, as a result of the strategy. Historically, ALC’s loan portfolio has represented both the Company’s highest yielding loans, as well as the portfolio with the highest level of credit losses. Accordingly, while interest earned on these loans is expected to decrease over time, loan loss provision expense is also expected to decrease after the portfolio pays down. As the pay down continues, management is continuing efforts to grow earning assets in the Bank’s other loan and investment categories, while at the same time maintaining pricing discipline on deposit and borrowing costs. As part of its overall interest rate risk management program, the Company has entered into forward interest rate swap contracts on certain variable rate deposit products and borrowings. During 2Q2022, the Company terminated one interest rate swap associated with a Federal Home Loan Bank borrowing and recorded a deferred gain associated with the termination of $0.3 million. The gain will be recognized over the remaining 27-month term of the original swap agreement.

 

Deposit Growth and Deployment of Funds – Deposits totaled $844.3 million as of June 30, 2022, compared to $838.1 million as of December 31, 2021, an increase of $6.2 million, or 0.7%. In the current environment, management has continued to focus on minimizing deposit expense and deploying excess cash balances into earning assets that meet the Company’s established credit standards, while maintaining appropriate levels of liquidity to meet projected funding needs. Total average funding costs, including both interest- and noninterest-bearing liabilities and borrowings, was 0.32% in both 2Q2022 and 1Q2022, compared to 0.36% in 2Q2021. For the six months ended June 30, 2022, average funding costs totaled 0.32%, compared to 0.37% during the corresponding period of 2021. Given the increasing interest rate environment, management continued to deploy a portion of excess funds into the investment securities portfolio during 2Q2022. Investment securities, including both the available-for-sale and held-to-maturity portfolios totaled $152.5 million as of June 30, 2022, compared to $137.7 million as of March 31, 2022 and $134.3 million as of December 31, 2021. The expected average life of securities in the investment portfolio as of June 30, 2022 was 3.40 years. Management maintains the portfolio with average durations that are expected to provide monthly cash flows that can be utilized to reinvest in earning assets at current market rates.

 

Loan Loss Provision –

Loan loss provisions totaled $0.9 million in 2Q2022, compared to $0.5 million in 2Q2021. For the six months ended June 30, 2022, loan loss provisions totaled $1.6 million, compared to $0.9 million for the six months ended June 30, 2021. The increase in provision expense comparing both the quarter and six months ended June 30, 2022 to the corresponding periods of 2021 reflected both an increase in charge-offs associated with ALC’s loan portfolio, as well as qualitative adjustments applied to the portfolio in response to heightened inflationary trends and other economic uncertainties that have emerged in 2022. In management’s view, the combination of the business cessation strategy, coupled with deteriorating economic conditions, including elevated inflation levels, has increased overall credit risk during 2022, particularly in ALC’s loan portfolio. Loan loss provisions recorded by the Company during the first six months of 2022 included expense of $1.3 million associated with ALC’s loans and $0.3 million associated with the Bank’s portfolio. While loan loss provisions at ALC resulted primarily from increased charge-offs and heightened economic risk factors, provisions at the Bank resulted primarily from loan growth. Management will continue to closely monitor the impact of changing economic circumstances on the Company’s loan portfolio and will adjust the allowance accordingly. Due to its classification as a smaller reporting company by the Securities and Exchange Commission, the Company is not required to adopt the Current Expected Credit Loss (CECL) model to account for credit losses until January 1, 2023. Management is continuing to evaluate the impact that the adoption of CECL will have on the Company’s financial statements.

 

2

 


 

First US Bancshares, Inc. Reports Second Quarter 2022 Results

July 27, 2022

 

Non-interest Income – Non-interest income totaled $0.9 million in 2Q2022, compared to $0.8 million in both 2Q2021 and 1Q2022. For the six months ended June 30, 2022, non-interest income totaled $1.7 million, compared to $1.8 million for the corresponding period of 2021.

 

Non-interest Expense – Non-interest expense totaled $6.9 million in 2Q2022, compared to $8.4 million in 2Q2021 and $7.1 million in 1Q2022. For the six months ended June 30, 2022, non-interest expense totaled $13.9 million, compared to $16.8 million for the six months ended June 30, 2021. The ongoing expense decreases in 2022 have resulted primarily from implementation of the ALC strategy, as well as other efficiency efforts conducted by the Bank. As a result of these efforts, significant expense reductions were realized associated with salaries and employee benefits, occupancy and equipment, and other expenses associated with technology and professional services. As of June 30, 2022, the Company had 156 full-time equivalent employees, compared to 175 as of December 31, 2021, and 259 as of June 30, 2021. Non-interest expense during the six months ended June 30, 2022 was further reduced by $0.3 million in nonrecurring net gains on the sale of other real estate owned (OREO).

 

Asset Quality – The Company’s nonperforming assets, including loans in non-accrual status and OREO, totaled $1.7 million as of June 30, 2022, compared to $4.2 million as of December 31, 2021. The reduction in nonperforming assets during the first six months of 2022 resulted from the sale of OREO properties during the period. Reductions in OREO totaled $1.9 million and included the sale of banking centers that were closed in 2021. As a percentage of total assets, non-performing assets totaled 0.18% as of June 30, 2022, compared to 0.43% as of December 31, 2021.

 

Shareholders’ Equity – As of June 30, 2022, shareholders’ equity totaled $82.6 million, compared to $90.1 million as of December 31, 2021. The decrease in shareholders’ equity resulted from reductions in accumulated other comprehensive income due to declines in the market value of the Company’s available-for-sale investment portfolio, as well as repurchases of shares of the Company’s common stock during the first six months of 2022. The market value declines in investment securities available-for-sale were the direct result of the increasing interest rate environment in 2022. No other-than-temporary impairment was recognized in the portfolio, and the Company has both the intent and ability to retain the investments for a period of time sufficient to allow for the full recovery of all market value decreases. The market value decrease in available-for-sale securities was partially offset by an increase in the market value of cash flow derivative instruments that hedge certain deposits and borrowings on the Company’s balance sheet.

 

Share Repurchases - During 2Q2022, the Company completed share repurchases totaling 260,800 shares of its common stock at a weighted average price of $11.01 per share. For the six months ended June 30, 2022, the Company repurchased a total of 348,400 shares of its common stock at a weighted average price per share of $10.99. The repurchases were completed under the Company’s existing share repurchase program, which was amended in April 2021 to allow for the repurchase of additional shares through December 31, 2022. As of June 30, 2022, 660,813 shares remained available for repurchase under the program.

 

Cash Dividend – The Company declared a cash dividend of $0.03 per share on its common stock in 2Q2022. The dividend was consistent with dividends paid during 1Q2022 and all four quarters of 2021.

 

Regulatory Capital –During 2Q2022, 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 June 30, 2022, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.45%. Its total capital ratio was 12.56%, and its Tier 1 leverage ratio was 9.33%.

 

Liquidity – As of June 30, 2022, 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 advances and brokered deposits.

 

 

3

 


 

First US Bancshares, Inc. Reports Second Quarter 2022 Results

July 27, 2022

 

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”). In addition, the Company’s operations include Acceptance Loan Company, Inc. (“ALC”), a consumer loan company, and FUSB Reinsurance, Inc., an underwriter of credit life and credit accident and health insurance policies sold to the Bank’s and ALC’s consumer loan customers. 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 the rate of growth (or lack thereof) in the economy generally and in the Company’s service areas; the impact of the current COVID-19 pandemic on the Company’s business, the Company’s customers, the communities that the Company serves and the United States economy, including the impact of actions taken by governmental authorities to try to contain the virus and protect against it, through vaccinations and otherwise, or address the impact of the virus on the United States economy (including, without limitation, the Coronavirus Aid, Relief and Economic Security (CARES) Act and subsequent federal legislation) and the resulting effect on the Company’s operations, liquidity and capital position and on the financial condition of the Company’s borrowers and other customers; the impact of changing accounting standards and tax laws on the Company’s allowance for loan losses and financial results; the impact of national and local market conditions on the Company’s business and operations; 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 pending 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 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.

 

4

 


 

First US Bancshares, Inc. Reports Second Quarter 2022 Results

July 27, 2022

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – LINKED QUARTERS

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

2022

 

 

2021

 

 

2022

 

 

 

2021

 

 

 

June
30,

 

 

March
31,

 

 

December
31,

 

 

September
30,

 

 

June
30,

 

 

June 30,

 

 

 

June 30,

 

Results of Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

9,525

 

 

$

9,381

 

 

$

9,987

 

 

$

10,030

 

 

$

10,059

 

 

$

18,906

 

 

 

$

19,904

 

Interest expense

 

 

699

 

 

 

672

 

 

 

727

 

 

 

695

 

 

 

747

 

 

 

1,371

 

 

 

 

1,528

 

Net interest income

 

 

8,826

 

 

 

8,709

 

 

 

9,260

 

 

 

9,335

 

 

 

9,312

 

 

 

17,535

 

 

 

 

18,376

 

Provision for loan and lease losses

 

 

895

 

 

 

721

 

 

 

493

 

 

 

618

 

 

 

498

 

 

 

1,616

 

 

 

 

899

 

Net interest income after provision for loan
   and lease losses

 

 

7,931

 

 

 

7,988

 

 

 

8,767

 

 

 

8,717

 

 

 

8,814

 

 

 

15,919

 

 

 

 

17,477

 

Non-interest income

 

 

856

 

 

 

829

 

 

 

865

 

 

 

896

 

 

 

809

 

 

 

1,685

 

 

 

 

1,760

 

Non-interest expense

 

 

6,878

 

 

 

7,056

 

 

 

7,414

 

 

 

8,547

 

 

 

8,399

 

 

 

13,934

 

 

 

 

16,795

 

Income before income taxes

 

 

1,909

 

 

 

1,761

 

 

 

2,218

 

 

 

1,066

 

 

 

1,224

 

 

 

3,670

 

 

 

 

2,442

 

Provision for income taxes

 

 

494

 

 

 

400

 

 

 

507

 

 

 

229

 

 

 

271

 

 

 

894

 

 

 

 

539

 

Net income

 

$

1,415

 

 

$

1,361

 

 

$

1,711

 

 

$

837

 

 

$

953

 

 

$

2,776

 

 

 

$

1,903

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.23

 

 

$

0.22

 

 

$

0.27

 

 

$

0.13

 

 

$

0.15

 

 

$

0.45

 

 

 

$

0.30

 

Diluted net income per share

 

$

0.22

 

 

$

0.20

 

 

$

0.25

 

 

$

0.13

 

 

$

0.14

 

 

$

0.42

 

 

 

$

0.28

 

Dividends declared

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.06

 

 

 

$

0.06

 

Key Measures (Period End):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

955,385

 

 

$

968,646

 

 

$

958,302

 

 

$

956,734

 

 

$

946,946

 

 

 

 

 

 

 

 

Tangible assets (1)

 

 

947,462

 

 

 

960,650

 

 

 

950,233

 

 

 

948,592

 

 

 

938,719

 

 

 

 

 

 

 

 

Loans, net of allowance for loan losses

 

 

705,886

 

 

 

669,846

 

 

 

700,030

 

 

 

696,972

 

 

 

677,756

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

8,751

 

 

 

8,484

 

 

 

8,320

 

 

 

8,193

 

 

 

7,726

 

 

 

 

 

 

 

 

Investment securities, net

 

 

152,536

 

 

 

137,736

 

 

 

134,319

 

 

 

121,467

 

 

 

123,583

 

 

 

 

 

 

 

 

Total deposits

 

 

844,296

 

 

 

853,117

 

 

 

838,126

 

 

 

846,842

 

 

 

837,885

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

10,088

 

 

 

10,062

 

 

 

10,046

 

 

 

10,037

 

 

 

10,017

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

10,690

 

 

 

10,671

 

 

 

10,653

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

82,576

 

 

 

87,807

 

 

 

90,064

 

 

 

89,597

 

 

 

88,778

 

 

 

 

 

 

 

 

Tangible common equity (1)

 

 

74,653

 

 

 

79,811

 

 

 

81,995

 

 

 

81,455

 

 

 

80,551

 

 

 

 

 

 

 

 

Book value per common share

 

 

14.05

 

 

 

14.33

 

 

 

14.59

 

 

 

14.41

 

 

 

14.28

 

 

 

 

 

 

 

 

Tangible book value per common share (1)

 

 

12.70

 

 

 

13.02

 

 

 

13.28

 

 

 

13.10

 

 

 

12.96

 

 

 

 

 

 

 

 

Key Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.58

%

 

 

0.58

%

 

 

0.71

%

 

 

0.35

%

 

 

0.41

%

 

 

0.58

%

 

 

 

0.42

%

Return on average common equity (annualized)

 

 

6.55

%

 

 

6.17

%

 

 

7.54

%

 

 

3.71

%

 

 

4.32

%

 

 

6.36

%

 

 

 

4.36

%

Return on average tangible common equity (annualized) (1)

 

 

7.21

%

 

 

6.77

%

 

 

8.29

%

 

 

4.08

%

 

 

4.76

%

 

 

6.99

%

 

 

 

4.82

%

Net interest margin

 

 

3.91

%

 

 

3.97

%

 

 

4.10

%

 

 

4.17

%

 

 

4.31

%

 

 

3.94

%

 

 

 

4.35

%

Efficiency ratio (2)

 

 

71.0

%

 

 

74.0

%

 

 

73.2

%

 

 

83.5

%

 

 

83.0

%

 

 

72.5

%

 

 

 

83.4

%

Net loans to deposits

 

 

83.6

%

 

 

78.5

%

 

 

83.5

%

 

 

82.3

%

 

 

80.9

%

 

 

 

 

 

 

 

Net loans to assets

 

 

73.9

%

 

 

69.2

%

 

 

73.0

%

 

 

72.8

%

 

 

71.6

%

 

 

 

 

 

 

 

Tangible common equity to tangible assets (1)

 

 

7.88

%

 

 

8.31

%

 

 

8.63

%

 

 

8.59

%

 

 

8.58

%

 

 

 

 

 

 

 

Tier 1 leverage ratio (3)

 

 

9.33

%

 

 

9.38

%

 

 

9.17

%

 

 

8.51

%

 

 

8.60

%

 

 

 

 

 

 

 

Allowance for loan losses as % of loans

 

 

1.22

%

 

 

1.25

%

 

 

1.17

%

 

 

1.16

%

 

 

1.13

%

 

 

 

 

 

 

 

Nonperforming assets as % of total assets

 

 

0.18

%

 

 

0.32

%

 

 

0.43

%

 

 

0.35

%

 

 

0.22

%

 

 

 

 

 

 

 

Net charge-offs as a percentage of average loans

 

 

0.36

%

 

 

0.32

%

 

 

0.18

%

 

 

0.09

%

 

 

0.15

%

 

 

0.34

%

 

 

 

0.20

%

 

(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

 

 

 

5

 


 

First US Bancshares, Inc. Reports Second Quarter 2022 Results

July 27, 2022

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

THREE MONTHS ENDED June 30, 2022 AND 2021

(Dollars in Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

Average
Balance

 

 

Interest

 

 

Annualized
Yield/
Rate %

 

 

Average
Balance

 

 

Interest

 

 

Annualized
Yield/
Rate %

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

698,696

 

 

$

8,742

 

 

 

5.02

%

 

$

673,676

 

 

$

9,668

 

 

 

5.76

%

Taxable investment securities

 

 

147,799

 

 

 

663

 

 

 

1.80

%

 

 

97,237

 

 

 

344

 

 

 

1.42

%

Tax-exempt investment securities

 

 

2,540

 

 

 

11

 

 

 

1.74

%

 

 

3,506

 

 

 

16

 

 

 

1.83

%

Federal Home Loan Bank stock

 

 

798

 

 

 

8

 

 

 

4.02

%

 

 

870

 

 

 

8

 

 

 

3.69

%

Federal funds sold

 

 

81

 

 

 

1

 

 

 

4.95

%

 

 

83

 

 

 

 

 

 

 

Interest-bearing deposits in banks

 

 

54,753

 

 

 

100

 

 

 

0.73

%

 

 

91,340

 

 

 

23

 

 

 

0.10

%

Total interest-earning assets

 

 

904,667

 

 

 

9,525

 

 

 

4.22

%

 

 

866,712

 

 

 

10,059

 

 

 

4.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

66,990

 

 

 

 

 

 

 

 

 

68,237

 

 

 

 

 

 

 

Total

 

$

971,657

 

 

 

 

 

 

 

 

$

934,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

253,887

 

 

$

130

 

 

 

0.21

%

 

$

235,493

 

 

$

145

 

 

 

0.25

%

Savings deposits

 

 

209,982

 

 

 

210

 

 

 

0.40

%

 

 

187,655

 

 

 

148

 

 

 

0.32

%

Time deposits

 

 

205,790

 

 

 

244

 

 

 

0.48

%

 

 

230,473

 

 

 

412

 

 

 

0.72

%

Total interest-bearing deposits

 

 

669,659

 

 

 

584

 

 

 

0.35

%

 

 

653,621

 

 

 

705

 

 

 

0.43

%

Noninterest-bearing demand deposits

 

 

189,600

 

 

 

 

 

 

 

 

 

173,842

 

 

 

 

 

 

 

Total deposits

 

 

859,259

 

 

 

584

 

 

 

0.27

%

 

 

827,463

 

 

 

705

 

 

 

0.34

%

Borrowings

 

 

17,569

 

 

 

115

 

 

 

2.63

%

 

 

10,017

 

 

 

42

 

 

 

1.68

%

Total funding costs

 

 

876,828

 

 

 

699

 

 

 

0.32

%

 

 

837,480

 

 

 

747

 

 

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

8,179

 

 

 

 

 

 

 

 

 

8,991

 

 

 

 

 

 

 

Shareholders’ equity

 

 

86,650

 

 

 

 

 

 

 

 

 

88,478