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

First Us Bancshares Inc

CIK: 717806 Ticker: FUSB

Exhibit 99.1

 


 

Contact:

Thomas S. Elley

 

205-582-1200

 

FIRST US BANCSHARES, INC.

REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS

────────

Reports Year-Over-Year Earnings Growth of 64.4% and Loan Growth of 11.1% (excluding PPP Loans)

 

BIRMINGHAM, AL (January 27, 2022) – First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”), today reported net income of $1.7 million, or $0.25 per diluted share, for the quarter ended December 31, 2021 (“4Q2021”), compared to $0.8 million, or $0.13 per diluted share, for the quarter ended September 30, 2021 (“3Q2021”) and $1.0 million, or $0.15 per diluted share, for the quarter ended December 31, 2020 (“4Q2020”). For the year ended December 31, 2021 (“Full-year 2021”), the Company’s net income totaled $4.5 million, or $0.66 per diluted share, compared to $2.7 million, or $0.40 per diluted share, for the year ended December 31, 2020 (“Full-year 2020”), an increase of 64.4%. The Company’s earnings growth in 2021 was driven by reductions in both interest and non-interest expense, as well as a decrease in the provision for loan and lease losses.  Although loan loss provisions decreased in 2021, the Company maintained its loan loss reserves as a percentage of total loans at levels consistent with the previous year and did not record negative provisions. Accordingly, loan loss provision expense was commensurate with the Company’s continued loan growth. Growth in loan volume during 4Q2021 totaled $2.1 million, bringing total loan growth for the year ended December 31, 2021, to $60.8 million, or 9.4%. Excluding Paycheck Protection Program (“PPP”) loans which have been administered by the Small Business Administration (“SBA”) in response to the COVID-19 pandemic, total loan growth for 2021 was $71.1 million, or 11.1%.

 

Strategic Initiatives

 

Progress continued during 4Q2021 on the Company’s strategic initiatives aimed at improving operating efficiency, focusing the Company’s loan growth activities, and fortifying asset quality. As previously announced, on September 3, 2021, the Bank’s wholly owned subsidiary, Acceptance Loan Company, Inc. (“ALC”), ceased new business development and permanently closed its 20 branch lending locations in Alabama and Mississippi to the public. This initiative resulted in pre-tax expense reductions at ALC netting to $1.3 million, comparing 4Q2021 to 3Q2021.  ALC’s 4Q2021 expense reductions were partially offset by one-time pre-tax charges totaling approximately $0.4 million associated with personnel, lease terminations, and other administrative costs associated with the branch closures.  As of December 31, 2021, approximately $0.9 million in total one-time pre-tax charges associated with ALC’s business cessation had been incurred.  This amount represents the majority of one-time charges currently expected in connection with this strategic initiative.  Future non-interest expenses at ALC are expected to consist primarily of personnel and operating expenses associated with collection of ALC’s remaining loan portfolio, as well as provision expense for loan losses or changes in loss estimates.

The expense reductions associated with the ALC strategy had a significant impact on the improvement of the Company’s earnings in 4Q2021.  These reductions are expected to contribute favorably to the Company’s earnings in future periods; however, revenues associated with loans at ALC will also decrease as ALC’s portfolio continues to pay down.  Loans at ALC totaled $40.8 million as of December 31, 2021, compared to $48.0 million as of September 30, 2021, a reduction of $7.2 million, or 15.0%, during the quarter.  Consistent with the reduction in loans, revenues earned on ALC’s loan portfolio decreased to $2.0 million in 4Q2021, compared to $2.3 million in 3Q2021, or a decrease of 13.0%. Management continues to expect that the majority of ALC’s loans will be paid off by the end of 2023.  Accordingly, the Company’s focus remains on loan growth in other areas of the Bank’s portfolio, as well as efforts to reduce the Bank’s ongoing operating expenses and improve the Company’s efficiency over time.

“We are pleased to end 2021 on a high note from an earnings standpoint,” stated James F. House, President and CEO of the Company. “Our ALC initiative, combined with the closure of four of the Bank’s branches in September, have driven substantial expense savings and improved profitability as we closed out the year.  We also achieved net loan growth during the quarter despite the substantial reductions in ALC’s loan portfolio. Though we remain focused on operational simplification and improvement, we have not lost sight of the importance of loan growth as a driver of long-term earnings,” continued Mr. House.

 

 

 

 

 

 

 

 

 


 

First US Bancshares, Inc. Reports Fourth Quarter and Full Year 2021 Results

January 27, 2022

 

 

 

 

Other Fourth 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 December 31, 2021.

 

 

Quarter Ended

 

 

 

2021

 

 

2020

 

 

 

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

 

$

67,048

 

 

$

58,175

 

 

$

53,425

 

 

$

48,491

 

 

$

37,282

 

Secured by 1-4 family residential properties

 

 

72,727

 

 

 

73,112

 

 

 

78,815

 

 

 

82,349

 

 

 

88,856

 

Secured by multi-family residential properties

 

 

46,000

 

 

 

51,420

 

 

 

53,811

 

 

 

54,180

 

 

 

54,326

 

Secured by non-farm, non-residential properties

 

 

197,901

 

 

 

198,745

 

 

 

191,398

 

 

 

193,626

 

 

 

184,528

 

Commercial and industrial loans

 

 

72,286

 

 

 

73,777

 

 

 

65,772

 

 

 

65,043

 

 

 

69,808

 

Paycheck Protection Program ("PPP") loans

 

 

1,661

 

 

 

3,902

 

 

 

11,587

 

 

 

14,795

 

 

 

11,927

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct consumer

 

 

21,689

 

 

 

25,845

 

 

 

26,937

 

 

 

26,998

 

 

 

29,788

 

Branch retail

 

 

25,692

 

 

 

29,764

 

 

 

31,688

 

 

 

31,075

 

 

 

32,094

 

Indirect sales

 

 

205,940

 

 

 

194,154

 

 

 

176,116

 

 

 

153,940

 

 

 

141,514

 

Total loans

 

$

710,944

 

 

$

708,894

 

 

$

689,549

 

 

$

670,497

 

 

$

650,123

 

Less unearned interest, fees and deferred costs

 

 

2,594

 

 

 

3,729

 

 

 

4,067

 

 

 

3,792

 

 

 

4,279

 

Allowance for loan and lease losses

 

 

8,320

 

 

 

8,193

 

 

 

7,726

 

 

 

7,475

 

 

 

7,470

 

Net loans

 

$

700,030

 

 

$

696,972

 

 

$

677,756

 

 

$

659,230

 

 

$

638,374

 

 

The Company’s commercial lending efforts in 2021 led to growth in the Bank’s construction, commercial real estate (secured by non-farm, non-residential properties), and C&I categories of $29.8 million, $13.4 million, and $2.5 million, respectively, for the year.  The growth in these portfolios was consistent with the commercial lending team’s focus areas and is indicative of continued improvement in economic activity in larger metropolitan markets, primarily in the southeast, that the Bank serves.  Growth in these categories was partially offset by decreases during the year in other loan categories including 1-4 residential family, multifamily residential, and PPP loans which decreased $16.1 million, $8.3 million, and $10.3 million, respectively. The reduction in PPP loans was anticipated given the nature of these loans which are administered by the SBA in response to the COVID-19 pandemic. PPP loans are no longer being originated by the Bank, and the reduction in loan balances during 2021 represented loans that were forgiven by the SBA. In addition, the reduction in 1-4 family residential loans included $9.2 million in 1-4 family rental investment properties, a loan category that management has generally sought to reduce exposure to in the current environment.

 

The Company maintains three consumer lending categories.  The direct consumer and branch retail categories are primarily comprised of loans in ALC’s consumer portfolio.  Accordingly, these categories are expected to decrease as the ALC dissolution strategy continues.  Reductions in the two categories of loans totaled $14.5 million combined in 2021, including a decrease of $8.2 million in 4Q2021, the first full quarter following the cessation of new business at ALC and closure of its branch lending locations.  The indirect category, which grew by $64.4 million in 2021, is focused on consumer lending secured by collateral that includes recreational vehicles, campers, boats, horse trailers and cargo trailers. Since early 2020, the Bank has experienced substantial growth in indirect lending as consumers sought alternatives to more traditional travel and leisure activities in the wake of the COVID-19 pandemic, and as the Bank expanded its lending platform into additional states. The Bank now operates indirect lending in a 12-state footprint primarily in the southeastern United States.

 

Net Interest Income and Margin – Net interest income totaled $9.3 million in both 4Q2021 and 3Q2021.  Full-year 2021 net interest income totaled $37.0 million, compared to $35.8 million in 2020.  The increase in 2021 resulted primarily from a reduction in interest expense totaling $1.7 million comparing the two years. Although the average balance of both interest-earning assets and interest-bearing liabilities increased in 2021 compared to 2020, the interest rate environment continued to compress margins leading to reductions in both interest income and interest expense.  Due to the interest rate environment, combined with growth in both noninterest and interest-bearing deposits, interest expense reductions outpaced interest income reductions, leading to overall net interest income improvement.  Annualized average funding costs totaled 0.33% in 4Q2021, compared to 0.32% in 3Q2021, and 0.47% in 4Q2020.  Net interest margin totaled 4.10% during 4Q2021, compared to 4.17% for 3Q2021, and 4.59% in 4Q2020.  Full-year 2021 net interest margin was 4.23%, compared to 4.69% in 2020.  

 

Deposit Growth and Deployment of Funds – Total deposits decreased by $8.7 million during 4Q2021, representing the first quarter of deposit reduction since March 31, 2020, at the onset of the COVID-19 pandemic.  For the year ended December 31, 2021, deposits increased by $55.9

2

 


 

First US Bancshares, Inc. Reports Fourth Quarter and Full Year 2021 Results

January 27, 2022

 

million, or 7.1%.  The deposit growth during 2021 was consistent with general trends in commercial banking and reflects deposit-holder receipt of stimulus payments and preferences for liquidity. In the current interest rate environment, the increased deposit levels put additional pressure on net interest margin as excess funds were deployed into lower earning assets. Management has continued to focus on deploying investable cash balances into earning assets that meet the Company’s established credit standards, while maintaining appropriate levels of liquidity.

 

Loan Loss Provision – Loan loss provisioning was $0.5 million in 4Q2021, compared to $0.6 million in 3Q2021. Full-year 2021 loan loss provisioning totaled $2.0 million, compared to $2.9 million in 2020.  The reduction in loan loss provisions in 2021 was due primarily to overall improvement in the economic outlook comparing the two years, as well as the reduced volume of loans in ALC’s portfolio which has historically carried the Company’s highest level of losses.  At the onset of the COVID-19 pandemic, over 1,900 of the Company’s borrowers requested and were granted COVID-19 pandemic-related loan payment deferments. As of December 31, 2021, loans that continued to be in pandemic-related deferment totaled only $0.3 million, compared to $95.2 million as of June 30, 2020, in the early stages of the pandemic. The decrease in deferred loans over the past six quarters is indicative of the strength of the credit quality within the portfolio. Although pandemic-related economic uncertainty continues to exist, management believes that the allowance for loan and lease losses, which was calculated under an incurred loss model, was sufficient to absorb losses in the Company’s loan portfolio based on circumstances existing as of December 31, 2021. The Company will continue to closely monitor the impact of changing economic circumstances on the Company’s loan portfolio and 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 continues to evaluate the impact that the adoption of CECL will have on the Company’s financial statements.

 

Non-interest Income – Non-interest income was $0.9 million in both 4Q2021 and 3Q2021.  Full-year 2021 non-interest income totaled $3.5 million, compared to $5.0 million in the previous year.  The reduction in non-interest income included $0.5 million in secondary market mortgage revenues that were earned in 2020 associated with the Bank’s mortgage division that was discontinued beginning in 4Q2020.  Although the discontinuance resulted in a reduction in non-interest income, non-interest expense associated with the mortgage division, primarily salaries and benefits, was reduced commensurately. In addition, during 2020, approximately $0.6 million in gains on sale of investment securities and sales of premises and equipment were recorded that were not repeated in 2021.  Furthermore, service and other charges on deposit accounts decreased $0.2 million due primarily to changes in deposit customer behaviors during the pandemic.

 

Non-interest Expense – Non-interest expense decreased by $1.1 million in 4Q2021, compared to 3Q2021, due primarily to cost savings resulting from ALC’s branch closures, as well as the closure of four of the Bank’s branches in September 2021. As mentioned previously, reductions in non-interest expense were partially offset by one-time pre-tax charges associated with the ALC dissolution initiative.   For the year ended December 31, 2021, non-interest expense totaled $32.8 million, compared to $34.3 million for the year ended December 31, 2020, a reduction of $1.5 million, or 4.5%. Consistent with expense reductions in 4Q2021, the full-year reduction in expenses resulted from cost savings associated with the ALC dissolution strategy combined with Bank branch closures.  Management remains focused on initiatives to continue to simplify the Company’s operating environment and improve operating efficiency.

 

Balance Sheet Growth – As of December 31, 2021, assets totaled $958.3 million, compared to $890.5 million as of December 31, 2020, an increase of 7.6%.  The Company’s asset growth in 2021 was consistent with overall growth in deposits and borrowings during the year. The deposit growth reflected the impact of the pandemic on both business and consumer deposit holders, including preferences for liquidity, loan payment deferments, tax payment deferments, government stimulus receipts and generally lower consumer spending. Of the total increase in deposits during 2021, $22.6 million represented non-interest-bearing deposits, while $33.3 million were interest-bearing.

 

Subordinated Debt Issuance – On October 1, 2021, the Company completed a private placement of $11.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes that will mature on October 1, 2031 (the “Notes”). The Notes bear interest at a rate of 3.50% per annum for the first five years, at which time the interest rate will be reset quarterly to a benchmark interest rate per annum which, subject to certain conditions provided in the Notes, will be equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) plus 275 basis points. The Company expects to use the net proceeds for general corporate purposes, which may include the repurchase of the Company’s common stock, and to support organic growth plans, including the maintenance of capital ratios. Following receipt of the net proceeds of the Notes, the Company invested $5.0 million into capital surplus of the Bank.

 

Asset Quality – The Company’s non-performing assets, including loans in non-accrual status and other real estate owned (OREO), totaled $4.2 million as of December 31, 2021, compared to $4.0 million as of December 31, 2020. During 2021, increases in the total amount of nonperforming assets resulted primarily from banking centers that were closed during the year and reclassified into OREO. As a percentage of total assets, non-performing assets were 0.43% as of December 31, 2021, compared to 0.45% as of December 31, 2020.   

 

Cash Dividend – The Company declared a cash dividend of $0.03 per share on its common stock in 4Q2021.  Dividends declared by the Company totaled $0.12 in both 2021 and 2020.  

 

Share Repurchases - During 4Q2021, the Company completed share repurchases totaling 45,748 shares of its $0.01 par value common stock at a weighted average price of $11.47 per share. The Company did not repurchase shares during the first three quarters of 2021. The 4Q2021 repurchases were completed under the Company’s existing share repurchase program, which was extended in December 2020, and amended in April 2021 to

3

 


 

First US Bancshares, Inc. Reports Fourth Quarter and Full Year 2021 Results

January 27, 2022

 

allow the repurchase of additional shares through its date of expiration on December 31, 2022.  As of December 31, 2021, a total of 1,009,213 shares remained available for repurchase under the program.

 

Regulatory Capital – During 4Q2021, 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, 2021, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.36%. Its total capital ratio was 12.44%, and its Tier 1 leverage ratio was 9.17%.

 

Liquidity – As of December 31, 2021, 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.

 

 

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 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. Specifically, with respect to statements relating to the sufficiency of the allowance for loan and lease losses, loan demand, cash flows, interest costs, growth and earnings potential, expansion and the Company’s positioning to handle the challenges presented by COVID-19, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy generally and in the Company’s service areas; market conditions and investment returns; changes in interest rates; 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 pending discontinuation of LIBOR as an interest rate benchmark; the availability of quality loans in the Company’s service areas; the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets; collateral values; cybersecurity threats; and risks related to the Paycheck Protection Program. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

4

 


 

First US Bancshares, Inc. Reports Fourth Quarter and Full Year 2021 Results

January 27, 2022

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – LINKED QUARTERS

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

 

 

 

Quarter Ended

 

 

Year Ended

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

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

 

$

9,987

 

 

$

10,030

 

 

$

10,059

 

 

$

9,845

 

 

$

10,204

 

 

$

39,921

 

 

$

40,377

 

Interest expense

 

 

727

 

 

 

695

 

 

 

747

 

 

 

781

 

 

 

912

 

 

 

2,950

 

 

 

4,611

 

Net interest income

 

 

9,260

 

 

 

9,335

 

 

 

9,312

 

 

 

9,064

 

 

 

9,292

 

 

 

36,971

 

 

 

35,766

 

Provision for loan and lease losses

 

 

493

 

 

 

618

 

 

 

498

 

 

 

401

 

 

 

469

 

 

 

2,010

 

 

 

2,945

 

Net interest income after provision for loan

   and lease losses

 

 

8,767

 

 

 

8,717

 

 

 

8,814

 

 

 

8,663

 

 

 

8,823

 

 

 

34,961

 

 

 

32,821

 

Non-interest income

 

 

865

 

 

 

896

 

 

 

809

 

 

 

951

 

 

 

1,008

 

 

 

3,521

 

 

 

5,010

 

Non-interest expense

 

 

7,414

 

 

 

8,547

 

 

 

8,399

 

 

 

8,396

 

 

 

8,477

 

 

 

32,756

 

 

 

34,299

 

Income before income taxes

 

 

2,218

 

 

 

1,066

 

 

 

1,224

 

 

 

1,218

 

 

 

1,354

 

 

 

5,726

 

 

 

3,532

 

Provision for income taxes

 

 

507

 

 

 

229

 

 

 

271

 

 

 

268

 

 

 

309

 

 

 

1,275

 

 

 

825

 

Net income

 

$

1,711

 

 

$

837

 

 

$

953

 

 

$

950

 

 

$

1,045

 

 

$

4,451

 

 

$

2,707

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.27

 

 

$

0.13

 

 

$

0.15

 

 

$

0.15

 

 

$

0.16

 

 

$

0.70

 

 

$

0.43

 

Diluted net income per share

 

$

0.25

 

 

$

0.13

 

 

$

0.14

 

 

$

0.14

 

 

$

0.15

 

 

$

0.66

 

 

$

0.40

 

Dividends declared

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.12

 

 

$

0.12

 

Key Measures (Period End):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

958,302

 

 

$

956,734

 

 

$

946,946

 

 

$

926,535

 

 

$

890,511

 

 

 

 

 

 

 

 

 

Tangible assets (1)

 

 

950,233

 

 

 

948,592

 

 

 

938,719

 

 

 

918,216

 

 

 

882,101

 

 

 

 

 

 

 

 

 

Loans, net of allowance for loan losses

 

 

700,030

 

 

 

696,972

 

 

 

677,756

 

 

 

659,230

 

 

 

638,374

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

8,320

 

 

 

8,193

 

 

 

7,726

 

 

 

7,475

 

 

 

7,470

 

 

 

 

 

 

 

 

 

Investment securities, net

 

 

134,319

 

 

 

121,467

 

 

 

123,583

 

 

 

75,783

 

 

 

91,422

 

 

 

 

 

 

 

 

 

Total deposits

 

 

838,126

 

 

 

846,842

 

 

 

837,885

 

 

 

818,043

 

 

 

782,212

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

10,046

 

 

 

10,037

 

 

 

10,017

 

 

 

10,017

 

 

 

10,017

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

10,653

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

90,064

 

 

 

89,597

 

 

 

88,778

 

 

 

87,917

 

 

 

86,678

 

 

 

 

 

 

 

 

 

Tangible common equity (1)

 

 

81,995

 

 

 

81,455

 

 

 

80,551

 

 

 

79,598

 

 

 

78,268

 

 

 

 

 

 

 

 

 

Book value per common share

 

 

14.59

 

 

 

14.41

 

 

 

14.28

 

 

 

14.15

 

 

 

14.03

 

 

 

 

 

 

 

 

 

Tangible book value per common share (1)

 

 

13.28

 

 

 

13.10

 

 

 

12.96

 

 

 

12.81

 

 

 

12.67

 

 

 

 

 

 

 

 

 

Key Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.71

%

 

 

0.35

%

 

 

0.41

%

 

 

0.43

%

 

 

0.48

%

 

 

0.47

%

 

 

0.32

%

Return on average common equity

   (annualized)

 

 

7.54

%

 

 

3.71

%

 

 

4.32

%

 

 

4.41

%

 

 

4.82

%

 

 

5.01

%

 

 

3.17

%

Return on average tangible common equity

   (annualized) (1)

 

 

8.29

%

 

 

4.08

%

 

 

4.76

%

 

 

4.87

%

 

 

5.34

%

 

 

5.52

%

 

 

3.52

%

Net interest margin

 

 

4.10

%

 

 

4.17

%

 

 

4.31

%

 

 

4.40

%

 

 

4.59

%

 

 

4.23

%

 

 

4.69

%

Efficiency ratio (2)

 

 

73.2

%

 

 

83.5

%

 

 

83.0

%

 

 

83.8

%

 

 

82.3

%

 

 

80.9

%

 

 

84.1

%

Net loans to deposits

 

 

83.5

%

 

 

82.3

%

 

 

80.9

%

 

 

80.6

%

 

 

81.6

%

 

 

 

 

 

 

 

 

Net loans to assets

 

 

73.0

%

 

 

72.8

%

 

 

71.6

%

 

 

71.2

%

 

 

71.7

%

 

 

 

 

 

 

 

 

Tangible common equity to tangible

   assets (1)

 

 

8.63

%

 

 

8.59

%

 

 

8.58

%

 

 

8.67

%

 

 

8.87

%

 

 

 

 

 

 

 

 

Tier 1 leverage ratio (3)

 

 

9.17

%

 

 

8.51

%

 

 

8.60

%

 

 

8.73

%

 

 

8.98

%

 

 

 

 

 

 

 

 

Allowance for loan losses as % of loans

 

 

1.17

%

 

 

1.16

%

 

 

1.13

%

 

 

1.12

%

 

 

1.16

%

 

 

 

 

 

 

 

 

Nonperforming assets as % of total assets

 

 

0.43

%

 

 

0.35

%

 

 

0.22

%

 

 

0.37

%

 

 

0.45

%

 

 

 

 

 

 

 

 

Net charge-offs as a percentage of average loans

 

 

0.18

%

 

 

0.09

%

 

 

0.15

%

 

 

0.25

%

 

 

0.11

%

 

 

0.16

%

 

 

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 Fourth Quarter and Full Year 2021 Results

January 27, 2022

 

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

THREE MONTHS ENDED DECEMBER 31, 2021 AND 2020

(Dollars in Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Average

Balance

 

 

Interest

 

 

Annualized

Yield/

Rate %

 

 

Average

Balance

 

 

Interest

 

 

Annualized

Yield/

Rate %

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

715,882

 

 

$

9,503

 

 

 

5.27

%

 

$

644,759

 

 

$

9,818

 

 

 

6.06

%

Taxable investment securities

 

 

127,605

 

 

 

444

 

 

 

1.38

%

 

 

92,523

 

 

 

344

 

 

 

1.48

%

Tax-exempt investment securities

 

 

3,091

 

 

 

13

 

 

 

1.67

%

 

 

3,533

 

 

 

16

 

 

 

1.80

%

Federal Home Loan Bank stock

 

 

870

 

 

 

8

 

 

 

3.65

%

 

 

1,135

 

 

 

10

 

 

 

3.51

%

Federal funds sold

 

 

80

 

 

 

 

 

 

 

 

 

85

 

 

 

 

 

 

 

Interest-bearing deposits in banks

 

 

48,310

 

 

 

19

 

 

 

0.16

%

 

 

63,477

 

 

 

16

 

 

 

0.10

%

Total interest-earning assets

 

 

895,838

 

 

 

9,987

 

 

 

4.42

%

 

 

805,512

 

 

 

10,204

 

 

 

5.04

%

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

66,147

 

 

 

 

 

 

 

 

 

 

 

68,096

 

 

 

 

 

 

 

 

 

Total

 

$

961,985

 

 

 

 

 

 

 

 

 

 

$

873,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

244,258

 

 

$

128

 

 

 

0.21

%

 

$

211,000

 

 

$

134

 

 

 

0.25

%

Savings deposits

 

 

204,063

 

 

 

145

 

 

 

0.28

%

 

 

167,429

 

 

 

151

 

 

 

0.36

%

Time deposits

 

 

212,891

 

 

 

295

 

 

 

0.55

%

 

 

236,769

 

 

 

591

 

 

 

0.99

%

Total interest-bearing deposits

 

 

661,212

 

 

 

568

 

 

 

0.34

%

 

 

615,198

 

 

 

876

 

 

 

0.57

%

Borrowings

 

 

20,678

 

 

 

159

 

 

 

3.05

%

 

 

10,021

 

 

 

36

 

 

 

1.43

%

Total interest-bearing liabilities (1)

 

 

681,890

 

 

 

727

 

 

 

0.42

%

 

 

625,219

 

 

 

912

 

 

 

0.58

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

179,331

 

 

 

 

 

 

 

 

 

 

 

152,537

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

10,758

 

 

 

 

 

 

 

 

 

 

 

9,515

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

90,006

 

 

 

 

 

 

 

 

 

 

 

86,337

 

 

 

 

 

 

 

 

 

Total

 

$

961,985

 

 

 

 

 

 

 

 

 

 

$

873,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

9,260

 

 

 

 

 

 

 

 

 

 

$

9,292

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

 

 

4.10

%

 

 

 

 

 

 

 

 

 

 

4.59

%

 

(1)   The annualized rate on total average funding costs, including total average interest-bearing liabilities and average non-interest-bearing demand deposits, was 0.33% and 0.47% for the three-month periods ended December 31, 2021 and 2020, respectively.

 

6

 


 

First US Bancshares, Inc. Reports Fourth Quarter and Full Year 2021 Results

January 27, 2022

 

 

 

FIRST US BANCSHARES, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

YEAR ENDED DECEMBER 31, 2021 AND 2020

(Dollars in Thousands)

(Unaudited)

 

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31, 2021