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First Us Bancshares, Inc. (FUSB) SEC Filing 8-K Material Event for the period ending Wednesday, October 26, 2022

First Us Bancshares Inc

CIK: 717806 Ticker: FUSB

 

Exhibit 99.1

 

img154360647_0.jpg 

 

 

FIRST US BANCSHARES, INC.

REPORTS THIRD QUARTER 2022 RESULTS

────────

Reports 31.4% Quarter-Over-Quarter Earnings Growth

 

BIRMINGHAM, AL (October 26, 2022) – First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”), today reported net income of $1.9 million, or $0.29 per diluted share, for the quarter ended September 30, 2022 (“3Q2022”), compared to $0.8 million, or $0.13 per diluted share, for the quarter ended September 30, 2021 (“3Q2021”) and $1.4 million, or $0.22 per diluted share, for the quarter ended June 30, 2022 (“2Q2022”). Net income totaled $4.6 million for the nine months ended September 30, 2022, compared to $2.7 million for the nine months ended September 30, 2021. Diluted earnings per share totaled $0.71 for the nine months ended September 30, 2022, compared to $0.41 per diluted share during the corresponding period of 2021.

 

Earnings improvement, comparing both 3Q2022 and the nine months ended September 30, 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. As a result of these efforts, non-interest expense was reduced by $1.5 million, or 17.7%, comparing 3Q2022 to 3Q2021 and by $4.4 million, or 17.3%, comparing the nine months ended September 30, 2022, to the nine months ended September 30, 2021. Comparing 3Q2022 to 2Q2022, non-interest expense decreased by $0.2 million, or 2.2%.

 

“The business simplification efforts that we launched in 2021, combined with solid loan growth during the past two quarters have contributed to strong earnings growth both in the third quarter and for the year,” stated James F. House, President and CEO of the Company. “As we move forward, our team remains very focused on the economic challenges that have emerged, including the potential impacts of inflation, rising interest rates and a slowing economy on our borrowers and depositors. We believe that our balance sheet is well-positioned for the volatile environment that we are entering,” 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 September 30, 2022.

 

 

Quarter Ended

 

 

 

2022

 

 

2021

 

 

 

September
30,

 

 

June
30,

 

 

March
31,

 

 

December
31,

 

 

September
30,

 

 

 

(Dollars in Thousands)

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

(Unaudited)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

36,740

 

 

$

40,625

 

 

$

52,817

 

 

$

67,048

 

 

$

58,175

 

Secured by 1-4 family residential properties

 

 

84,911

 

 

 

69,098

 

 

 

69,760

 

 

 

72,727

 

 

 

73,112

 

Secured by multi-family residential properties

 

 

72,446

 

 

 

66,848

 

 

 

50,796

 

 

 

46,000

 

 

 

51,420

 

Secured by non-farm, non-residential properties

 

 

200,505

 

 

 

187,041

 

 

 

177,752

 

 

 

197,901

 

 

 

198,745

 

Commercial and industrial loans

 

 

65,920

 

 

 

65,792

 

 

 

67,455

 

 

 

72,286

 

 

 

73,777

 

Paycheck Protection Program ("PPP") loans

 

 

31

 

 

 

116

 

 

 

643

 

 

 

1,661

 

 

 

3,902

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct consumer

 

 

12,279

 

 

 

15,419

 

 

 

18,023

 

 

 

21,689

 

 

 

25,845

 

Branch retail

 

 

16,278

 

 

 

18,634

 

 

 

21,891

 

 

 

25,692

 

 

 

29,764

 

Indirect sales

 

 

262,742

 

 

 

252,206

 

 

 

220,931

 

 

 

205,940

 

 

 

194,154

 

Total loans

 

$

751,852

 

 

$

715,779

 

 

$

680,068

 

 

$

710,944

 

 

$

708,894

 

Less unearned interest, fees and deferred costs

 

 

1,581

 

 

 

1,142

 

 

 

1,738

 

 

 

2,594

 

 

 

3,729

 

Allowance for loan and lease losses

 

 

9,373

 

 

 

8,751

 

 

 

8,484

 

 

 

8,320

 

 

 

8,193

 

Net loans

 

$

740,898

 

 

$

705,886

 

 

$

669,846

 

 

$

700,030

 

 

$

696,972

 

 

 


 

First US Bancshares, Inc. Reports Third Quarter 2022 Results

October 26, 2022

 

The Company’s total loan portfolio increased by $36.1 million, or 5.0%, during 3Q2022. Loan volume increases resulted from growth primarily in the Bank’s residential (secured by multi-family and 1-4 family residential properties), commercial real estate (secured by non-farm, non-residential properties), and consumer indirect categories. Growth in these categories was consistent with continued commercial economic activity and resiliency in consumer demand during the quarter. Loan growth was partially offset by decreases in the construction, 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 September 30, 2022, loans totaled $751.9 million, an increase of $40.9 million, or 5.8%, since December 31, 2021.

 

Net Interest Income and Margin – Net interest income totaled $9.5 million in 3Q2022, compared to $9.3 million in 3Q2021 and $8.8 million in 2Q2022. The improvement compared to both prior quarters resulted from loan growth, as well as margin expansion as earning assets repriced faster than interest-bearing liabilities amid the rising interest rate environment. For the nine months ended September 30, 2022, net interest income totaled $27.1 million, compared to $27.7 million for the nine months ended September 30, 2021. The decrease comparing the nine months ended September 30, 2022 to the corresponding period of 2021, was 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 by $3.1 million comparing the nine months ended September 30, 2022 to the corresponding period of 2021. The decrease related to ALC loans was partially offset by interest income in the Bank’s other earning asset categories, which increased by $2.7 million comparing the nine months ended September 30, 2022 to the nine months ended September 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. The reductions in loans at ALC have 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 4.10% in 3Q2022, compared to 4.17% in 3Q2021. For the nine months ended September 30, 2022, net interest margin was 4.00%, compared to 4.29% for the nine months ended September 30, 2021. Though net interest income and margin have decreased as a result of the cessation of ALC's business, significant non-interest expense savings have also developed, and ultimately, reductions in losses and loan loss provisioning are also expected. 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 has decreased, losses and loan loss provision expense are expected to decrease in the future after the portfolio has paid 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 costs and earning asset yields consistent with the current interest rate environment. As of September 30, 2022, remaining loans, net of unearned interest and fees, in ALC’s portfolio totaled $23.8 million. This amount represents 49.7% of the total loans in ALC's portfolio as of September 30, 2021, immediately following implementation of the cessation of business strategy.

 

Deposit Growth and Deployment of Funds – Deposits totaled $846.5 million as of September 30, 2022, compared to $838.1 million as of December 31, 2021, an increase of $8.4 million, or 1.0%. Total average funding costs, including both interest- and noninterest-bearing deposits and borrowings, was 0.51% in 3Q2022, compared to 0.32% in 3Q2021. For the nine months ended September 30, 2022, average funding costs totaled 0.39%, compared to 0.36% during the corresponding period of 2021. In the current rising interest rate environment, management continues to seek to deploy earning assets in an efficient manner, including growth in both loans and investment securities. Investment securities, including both the available-for-sale and held-to-maturity portfolios totaled $145.9 million as of September 30, 2022, compared to $134.3 million as of December 31, 2021. The expected average life of securities in the investment portfolio as of September 30, 2022 was 3.59 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 $1.2 million in 3Q2022, compared to $0.6 million in 3Q2021. For the nine months ended September 30, 2022, loan loss provisions totaled $2.8 million, compared to $1.5 million for the nine months ended September 30, 2021. The increase in provision expense comparing both the quarter and nine months ended September 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 nine months of 2022 included expense of $1.6 million associated with ALC’s loans and $1.2 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.

 

Non-interest Income – Non-interest income totaled $1.1 million in 3Q2022, compared to $0.9 million in 3Q2021. For the nine months ended September 30, 2022, non-interest income totaled $2.8 million, compared to $2.7 million for the corresponding period of 2021.

 

2

 


 

First US Bancshares, Inc. Reports Third Quarter 2022 Results

October 26, 2022

 

Non-interest Expense – Non-interest expense totaled $7.0 million in 3Q2022, compared to $8.5 million in 3Q2021. For the nine months ended September 30, 2022, non-interest expense totaled $21.0 million, compared to $25.3 million for the nine months ended September 30, 2021. The expense decreases in 2022 have resulted primarily from the cessation of ALC's business, 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. Non-interest expense during the nine months ended September 30, 2022 was further reduced by $0.3 million in nonrecurring net gains on the sale of other real estate owned (OREO). Due primarily to significant reduction in non-interest expense, the Company's efficiency ratio improved to 66.3% in 3Q2022, compared to 83.5% in 3Q2021.

 

Asset Quality – The Company’s nonperforming assets, including loans in non-accrual status and OREO, totaled $2.8 million as of September 30, 2022, compared to $1.7 million as of June 30, 2022, and $4.2 million as of December 31, 2021. The increase in nonperforming assets during 3Q2022 resulted primarily from two loan relationships (one from the commercial and industrial category and one from the secured by 1-4 family category) that moved into nonaccrual status during the quarter. The reduction in nonperforming assets during the first nine months of 2022 resulted from the sale of OREO properties during the period. Reductions in OREO totaled $1.5 million and included the sale of banking centers that were closed in 2021. As a percentage of total assets, non-performing assets totaled 0.28% as of September 30, 2022, compared to 0.18% as of June 30, 2022, and 0.43% as of December 31, 2021.

 

Shareholders’ Equity – As of September 30, 2022, shareholders’ equity totaled $83.1 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 nine months ended September 30, 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 3Q2022, the Company completed share repurchases totaling 64,000 shares of its common stock at a weighted average price of $10.20 per share. For the nine months ended September 30, 2022, the Company repurchased a total of 412,400 shares of its common stock at a weighted average price per share of $10.87. 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 September 30, 2022, 596,813 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 3Q2022. The dividend was consistent with dividends paid during the prior two quarters of 2022 and all four quarters of 2021.

 

Regulatory Capital –During 3Q2022, 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 September 30, 2022, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.09%. Its total capital ratio was 12.23%, and its Tier 1 leverage ratio was 9.23%.

 

Liquidity – As of September 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 Third Quarter 2022 Results

October 26, 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 Third Quarter 2022 Results

October 26, 2022

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – LINKED QUARTERS

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

September
30,

 

 

June
30,

 

 

March
31,

 

 

December
31,

 

 

September
30,

 

 

September
30,

 

 

September
30,

 

Results of Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

10,670

 

 

$

9,525

 

 

$

9,381

 

 

$

9,987

 

 

$

10,030

 

 

$

29,576

 

 

$

29,934

 

Interest expense

 

 

1,155

 

 

 

699

 

 

 

672

 

 

 

727

 

 

 

695

 

 

 

2,526

 

 

 

2,223

 

Net interest income

 

 

9,515

 

 

 

8,826

 

 

 

8,709

 

 

 

9,260

 

 

 

9,335

 

 

 

27,050

 

 

 

27,711

 

Provision for loan and lease losses

 

 

1,165

 

 

 

895

 

 

 

721

 

 

 

493

 

 

 

618

 

 

 

2,781

 

 

 

1,517

 

Net interest income after provision for loan
   and lease losses

 

 

8,350

 

 

 

7,931

 

 

 

7,988

 

 

 

8,767

 

 

 

8,717

 

 

 

24,269

 

 

 

26,194

 

Non-interest income

 

 

1,088

 

 

 

856

 

 

 

829

 

 

 

865

 

 

 

896

 

 

 

2,773

 

 

 

2,656

 

Non-interest expense

 

 

7,032

 

 

 

6,878

 

 

 

7,056

 

 

 

7,414

 

 

 

8,547

 

 

 

20,966

 

 

 

25,342

 

Income before income taxes

 

 

2,406

 

 

 

1,909

 

 

 

1,761

 

 

 

2,218

 

 

 

1,066

 

 

 

6,076

 

 

 

3,508

 

Provision for income taxes

 

 

546

 

 

 

494

 

 

 

400

 

 

 

507

 

 

 

229

 

 

 

1,440

 

 

 

768

 

Net income

 

$

1,860

 

 

$

1,415

 

 

$

1,361

 

 

$

1,711

 

 

$

837

 

 

$

4,636

 

 

$

2,740

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.31

 

 

$

0.23

 

 

$

0.22

 

 

$

0.27

 

 

$

0.13

 

 

$

0.76

 

 

$

0.43

 

Diluted net income per share

 

$

0.29

 

 

$

0.22

 

 

$

0.20

 

 

$

0.25

 

 

$

0.13

 

 

$

0.71

 

 

$

0.41

 

Dividends declared

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.09

 

 

$

0.09

 

Key Measures (Period End):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

989,277

 

 

$

955,385

 

 

$

968,646

 

 

$

958,302

 

 

$

956,734

 

 

 

 

 

 

 

Tangible assets (1)

 

 

981,421

 

 

 

947,462

 

 

 

960,650

 

 

 

950,233

 

 

 

948,592

 

 

 

 

 

 

 

Loans, net of allowance for loan losses

 

 

740,898

 

 

 

705,886

 

 

 

669,846

 

 

 

700,030

 

 

 

696,972

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

9,373

 

 

 

8,751

 

 

 

8,484

 

 

 

8,320

 

 

 

8,193

 

 

 

 

 

 

 

Investment securities, net

 

 

145,903

 

 

 

152,536

 

 

 

137,736

 

 

 

134,319

 

 

 

121,467

 

 

 

 

 

 

 

Total deposits

 

 

846,537

 

 

 

844,296

 

 

 

853,117

 

 

 

838,126

 

 

 

846,842

 

 

 

 

 

 

 

Short-term borrowings

 

 

40,106

 

 

 

10,088

 

 

 

10,062

 

 

 

10,046

 

 

 

10,037

 

 

 

 

 

 

 

Long-term borrowings

 

 

10,708

 

 

 

10,690

 

 

 

10,671

 

 

 

10,653

 

 

 

-

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

83,103

 

 

 

82,576

 

 

 

87,807

 

 

 

90,064

 

 

 

89,597

 

 

 

 

 

 

 

Tangible common equity (1)

 

 

75,247

 

 

 

74,653

 

 

 

79,811

 

 

 

81,995

 

 

 

81,455

 

 

 

 

 

 

 

Book value per common share

 

 

14.30

 

 

 

14.05

 

 

 

14.33

 

 

 

14.59

 

 

 

14.41

 

 

 

 

 

 

 

Tangible book value per common share (1)

 

 

12.95

 

 

 

12.70

 

 

 

13.02

 

 

 

13.28

 

 

 

13.10

 

 

 

 

 

 

 

Key Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.75

%

 

 

0.58

%

 

 

0.58

%

 

 

0.71

%

 

 

0.35

%

 

 

0.64

%

 

 

0.39

%

Return on average common equity (annualized)

 

 

8.78

%

 

 

6.55

%

 

 

6.17

%

 

 

7.54

%

 

 

3.71

%

 

 

7.15

%

 

 

4.14

%

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

 

 

9.69

%

 

 

7.21

%

 

 

6.77

%

 

 

8.29

%

 

 

4.08

%

 

 

7.87

%

 

 

4.57

%

Net interest margin

 

 

4.10

%

 

 

3.91

%

 

 

3.97

%

 

 

4.10

%

 

 

4.17

%

 

 

4.00

%

 

 

4.29

%

Efficiency ratio (2)

 

 

66.3

%

 

 

71.0

%

 

 

74.0

%

 

 

73.2

%

 

 

83.5

%

 

 

70.3

%

 

 

83.5

%

Net loans to deposits

 

 

87.5

%

 

 

83.6

%

 

 

78.5

%

 

 

83.5

%

 

 

82.3

%

 

 

 

 

 

 

Net loans to assets

 

 

74.9

%

 

 

73.9

%

 

 

69.2

%

 

 

73.0

%

 

 

72.8

%

 

 

 

 

 

 

Tangible common equity to tangible assets (1)

 

 

7.67

%

 

 

7.88

%

 

 

8.31

%

 

 

8.63

%

 

 

8.59

%

 

 

 

 

 

 

Tier 1 leverage ratio (3)

 

 

9.23

%

 

 

9.33

%

 

 

9.38

%

 

 

9.17

%

 

 

8.51

%

 

 

 

 

 

 

Allowance for loan losses as % of loans

 

 

1.25

%

 

 

1.22

%

 

 

1.25

%

 

 

1.17

%

 

 

1.16

%

 

 

 

 

 

 

Nonperforming assets as % of total assets

 

 

0.28

%

 

 

0.18

%

 

 

0.32

%

 

 

0.43

%

 

 

0.35

%

 

 

 

 

 

 

Net charge-offs as a percentage of average loans

 

 

0.29

%

 

 

0.36

%

 

 

0.32

%

 

 

0.18

%

 

 

0.09

%

 

 

0.24

%

 

 

0.25

%

 

(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 Third Quarter 2022 Results

October 26, 2022

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

THREE MONTHS ENDED September 30, 2022 AND 2021

(Dollars in Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Average
Balance

 

 

Interest

 

 

Annualized
Yield/
Rate %

 

 

Average
Balance

 

 

Interest

 

 

Annualized
Yield/
Rate %

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

743,145

 

 

$

9,750

 

 

 

5.21

%

 

$

691,435

 

 

$

9,568

 

 

 

5.49

%

Taxable investment securities

 

 

148,964

 

 

 

748

 

 

 

1.99

%

 

 

119,943

 

 

 

409

 

 

 

1.35

%

Tax-exempt investment securities

 

 

2,322

 

 

 

8

 

 

 

1.37

%

 

 

3,367

 

 

 

15

 

 

 

1.77

%

Federal Home Loan Bank stock

 

 

1,808

 

 

 

17

 

 

 

3.73

%

 

 

870

 

 

 

8

 

 

 

3.65

%

Federal funds sold

 

 

1,984

 

 

 

11

 

 

 

2.20

%

 

 

86

 

 

 

 

 

 

 

Interest-bearing deposits in banks

 

 

23,166

 

 

 

136

 

 

 

2.33

%

 

 

73,490

 

 

 

30

 

 

 

0.16

%

Total interest-earning assets

 

 

921,389

 

 

 

10,670

 

 

 

4.59

%

 

 

889,191

 

 

 

10,030

 

 

 

4.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

64,593

 

 

 

 

 

 

 

 

 

67,067

 

 

 

 

 

 

 

Total

 

$

985,982

 

 

 

 

 

 

 

 

$

956,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

243,131

 

 

$

182

 

 

 

0.30

%

 

$

239,188

 

 

$

141

 

 

 

0.23

%

Savings deposits

 

 

211,724

 

 

 

342

 

 

 

0.64

%

 

 

208,187

 

 

 

160

 

 

 

0.30

%

Time deposits

 

 

209,361

 

 

 

340

 

 

 

0.64

%

 

 

223,988

 

 

 

351

 

 

 

0.62

%

Total interest-bearing deposits

 

 

664,216

 

 

 

864

 

 

 

0.52

%

 

 

671,363

 

 

 

652

 

 

 

0.39

%

Noninterest-bearing demand deposits

 

 

183,612

 

 

 

 

 

 

 

 

 

176,102

 

 

 

 

 

 

 

Total deposits

 

 

847,828

 

 

 

864

 

 

 

0.40

%

 

 

847,465

 

 

 

652

 

 

 

0.31

%

Borrowings

 

 

45,427

 

 

 

291

 

 

 

2.54

%

 

 

10,032

 

 

 

43

 

 

 

1.70

%

Total funding costs

 

 

893,255

 

 

 

1,155

 

 

 

0.51