First US Bancshares, Inc. Reports First Quarter 2025 Results

, /PRNewswire/ -- First Quarter Highlights: Period Net Income Diluted Earningsper share Return on average assets(annualized) Return on average commonequity (annualized) Return on average tangiblecommon equity (annualized) (1) 1Q2025 $1.8 million $0.29 0.66 % 7.21 % 7.79 % First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 ("1Q2025"), compared to $1.7 million, or $0.29 per diluted share, for the quarter ended December 31, 2024 ("4Q2024") and $2.1 million, or $0.34 per diluted share, for the quarter ended March 31, 2024 ("1Q2024"). The table below summarizes selected financial data for each of the periods presented. Quarter Ended 2025 2024 March 31, December31, September30, June30, March31, Results of Operations: (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income $ 14,018 $ 14,420 $ 15,017 $ 14,546 $ 14,277 Interest expense 5,121 5,672 5,832 5,370 5,237 Net interest income 8,897 8,748 9,185 9,176 9,040 Provision for credit losses 528 470 152 - - Net interest income after provision for credit losses 8,369 8,278 9,033 9,176 9,040 Non-interest income 875 982 901 835 865 Non-interest expense 6,918 6,947 6,990 7,272 7,147 Income before income taxes 2,326 2,313 2,944 2,739 2,758 Provision for income taxes 554 599 722 612 651 Net income $ 1,772 $ 1,714 $ 2,222 $ 2,127 $ 2,107 Per Share Data: Basic net income per share $ 0.30 $ 0.30 $ 0.38 $ 0.36 $ 0.36 Diluted net income per share $ 0.29 $ 0.29 $ 0.36 $ 0.34 $ 0.34 Dividends declared $ 0.07 $ 0.07 $ 0.05 $ 0.05 $ 0.05 Key Measures (Period End): Total assets $ 1,126,967 $ 1,101,086 $ 1,100,235 $ 1,083,313 $ 1,070,541 Tangible assets (1) 1,119,502 1,093,602 1,092,733 1,075,781 1,062,972 Total loans 848,335 823,039 803,308 819,126 822,941 Allowance for credit losses ("ACL") on loans and leases 10,405 10,184 10,116 10,227 10,436 Investment securities, net 161,946 168,570 145,044 144,876 126,363 Total deposits 961,952 972,557 981,149 954,455 943,268 Short-term borrowings 45,000 10,000 - 15,000 15,000 Long-term borrowings 10,890 10,872 10,854 10,836 10,817 Total shareholders' equity 101,231 98,624 98,491 93,836 92,326 Tangible common equity (1) 93,766 91,140 90,989 86,304 84,757 Book value per common share 17.64 17.31 17.23 16.34 15.95 Tangible book value per common share (1) 16.34 16.00 15.92 15.03 14.65 Key Ratios: Return on average assets (annualized) 0.66 % 0.63 % 0.82 % 0.80 % 0.80 % Return on average common equity (annualized) 7.21 % 6.92 % 9.21 % 9.23 % 9.25 % Return on average tangible common equity (annualized) (1) 7.79 % 7.49 % 9.99 % 10.05 % 10.08 % Net interest margin 3.53 % 3.41 % 3.60 % 3.69 % 3.65 % Efficiency ratio (2) 70.8 % 71.4 % 69.3 % 72.6 % 72.2 % Total loans to deposits 88.2 % 84.6 % 81.9 % 85.8 % 87.2 % Total loans to assets 75.3 % 74.7 % 73.0 % 75.6 % 76.9 % Common equity to total assets 8.98 % 8.96 % 8.95 % 8.66 % 8.62 % Tangible common equity to tangible assets (1) 8.38 % 8.33 % 8.33 % 8.02 % 7.97 % Tier 1 leverage ratio (3) 9.55 % 9.50 % 9.49 % 9.46 % 9.37 % ACL on loans and leases as % of total loans 1.23 % 1.24 % 1.26 % 1.25 % 1.27 % Nonperforming assets as % of total assets 0.44 % 0.50 % 0.60 % 0.27 % 0.28 % Net charge-offs as a percentage of average loans 0.13 % 0.24 % 0.12 % 0.10 % 0.09 % (1) Refer to Non-GAAP reconciliation of tangible balances and measures beginning on page 8. (2) Efficiency ratio = non-interest expense / (net interest income + non-interest income) (3) First US Bank Tier 1 leverage ratio CEO Commentary "We are off to a good start in 2025, reporting a quarter with solid loan growth and meaningful improvement in net interest margin," stated James F. House, President and CEO of the Company. "Loans grew by 3.1% during the quarter and net interest margin increased by 12 basis points over the prior quarter. While the economic environment is currently quite volatile, we continue to believe that our disciplined approach to lending, investing and funds management will serve the Company well as we move through the year," continued Mr. House. Financial Results Loans and Leases – The table below summarizes loan balances by portfolio category as of the end of each of the most recent five quarters. Quarter Ended 2025 2024 March31, December31, September 30, June30, March31, (Dollars in Thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Real estate loans: Construction, land development and other land loans $58,572 $65,537 $53,098 $72,183 $102,282 Secured by 1-4 family residential properties 68,523 69,999 70,067 70,272 74,361 Secured by multi-family residential properties 106,374 101,057 100,627 97,527 62,145 Secured by non-residential commercial real estate 214,065 227,751 224,611 218,386 212,465 Commercial and industrial loans 45,166 44,238 44,872 46,249 57,112 Consumer loans: Direct 4,610 4,774 5,018 5,272 5,590 Indirect 351,025 309,683 305,015 309,237 308,986 Total loans and leases held for investment $848,335 $823,039 $803,308 $819,126 $822,941 Allowance for credit losses on loans and leases 10,405 10,184 10,116 10,227 10,436 Net loans and leases held for investment $837,930 $812,855 $793,192 $808,899 $812,505 Total loans increased by $25.3 million in 1Q2025, driven primarily by growth of $41.3 million in consumer indirect loans during the quarter. The indirect lending platform focuses on recreational and equipment consumer lending on the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during 1Q2025 reached 800, while the weighted average credit score for the entire portfolio was 779. In addition to the indirect portfolio, the Company also grew its multi-family residential real estate and commercial and industrial lending categories during the quarter by $5.3 million and $0.9 million, respectively. Loan growth during 1Q2025 was partially offset by reductions of $22.2 million in other lending categories, primarily construction and non-residential commercial real estate. Total loan volume averaged $824.5 million during 1Q2025, compared to $811.1 million during 4Q2024, and $822.0 million during 1Q2024. Net Interest Income and Margin – Net interest income in 1Q2025 increased by $0.1 million compared to 4Q2024 and decreased by $0.1 million compared to 1Q2024. Net interest margin was 3.53% for 1Q2025 compared to 3.41% for 4Q2024 and 3.65% for 1Q2024. The increase in net interest margin compared to the prior quarter resulted from increased average loan volume, as well as reductions in total funding costs from deposits and borrowings. The decrease in net interest margin compared to 1Q2024 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2024. Deposits – Total deposits decreased by $10.6 million, or 1.1%, during 1Q2025, due primarily to reductions in interest-bearing demand deposit accounts, and to a lesser extent, reductions in non-interest-bearing demand deposit accounts. These reductions resulted in part from lower deposit pricing implemented by management during the quarter in an effort to improve net interest margin. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $813.9 million, or 84.6% of total deposits, as of March 31, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. Short-term Borrowings – As of March 31, 2025, the Company had $45.0 million in short-term borrowings outstanding, compared to $10.0 million outstanding as of December 31, 2024. The short-term borrowings were held as part of the Company's efforts to maintain on-balance sheet liquidity levels while repricing deposits at lower rates. As of both March 31, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of March 31, 2025 included $25.0 million borrowed from the Federal Home Loan Bank of Atlanta ("FHLB") and $20.0 million borrowed from the Federal Reserve Bank's ("FRB") discount window. As of December 31, 2024, all short-term borrowings outstanding were borrowed exclusively from the FHLB. Deployment of Funds – As of March 31, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $61.5 million, or 5.5% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $161.9 million as of March 31, 2025, compared to $168.6 million as of December 31, 2024. As of March 31, 2025, the expected average life of securities in the investment portfolio was 4.0 years, compared to 3.6 years as of December 31, 2024. Provision for Credit Losses – During 1Q2025 the Company recorded a provision for credit losses of $0.5 million due primarily to loan growth during the quarter. The provision in 1Q2025 was consistent with provisioning taken during 4Q2024 and was attributable to continued loan growth, as well as increases associated with individually evaluated loans. No provision for credit losses was taken in 1Q2024. As of March 31, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.23%, compared to 1.24% as of December 31, 2024. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $5.0 million as of March 31, 2025, compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets totaled 0.44% as of March 31, 2025, compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.13% during 1Q2025, compared to 0.24% during 4Q2024 and 0.09% during 1Q2024. Non-interest Income – Non-interest income remained relatively consistent, totaling $0.9 million in 1Q2025 compared to $1.0 million in 4Q2024 and $0.9 million in 1Q2024. Non-interest Expense – Non-interest expense totaled $6.9 million in both 1Q2025 and 4Q2024, compared to $7.1 million in 1Q2024. The expense reduction comparing 1Q2025 to 1Q2024 resulted primarily from decreases in salaries and benefits and fees for professional services. These reductions were partially offset by an increase in other expense that resulted primarily from a recovery of check fraud expense that occurred in 1Q2024, but was not repeated in 1Q2025. Shareholders' Equity – As of March 31, 2025, shareholders' equity totaled $101.2 million, or 8.98% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders' equity during 1Q2025 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during the quarter by reductions in the Company's accumulated other comprehensive loss resulting from changes in market interest rates, as well as the maturity of lower yielding investment securities. The Company's ratio of tangible common equity to tangible assets was 8.38% as of March 31, 2025, compared to 8.33% as of December 31, 2024. Cash Dividend – In 1Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 4Q2024. The Company's cash dividend was increased in 4Q2024, compared to a dividend declared of $0.05 per share in each of the first three quarters of 2024. Share Repurchases – During 1Q2025, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $13.38 per share. The repurchases were completed under the Company's previously announced share repurchase program. As of March 31, 2025, 872,813 shares remained available for repurchase under the program. Regulatory Capital – During 1Q2025, 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 March 31, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.08%, its total capital ratio was 12.23%, and its Tier 1 leverage ratio was 9.55%. Liquidity – As of March 31, 2025, the Company continued to maintain 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 with other banking institutions, FHLB advances, the FRB's discount window, and brokered deposits. Banking Center Growth – During 1Q2025, the Company continued its renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location is expected to serve as the Bank's initial deposit gathering facility in the Daphne/Mobile area. It is currently anticipated that the location will open to the public by the fourth quarter of 2025. About First US Bancshares, Inc. First US Bancshares, Inc. (the "Company") is a bank holding company that operates banking offices in Alabama, Tennessee, and Virginia through First US Bank (the "Bank"). The Company files periodic reports with the U.S. Securities and Exchange Commission (the "SEC"). Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.firstusbank.com. More information about the Company and the Bank may be obtained at www.firstusbank.com. The Company's stock is traded on the Nasdaq Capital Market under the symbol "FUSB." Forward-Looking Statements This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. The Company undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, the Company, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of the Company's senior management based upon current information and involve a number of risks and uncertainties. Certain factors that could affect the accuracy of such forward-looking statements and cause actual results to differ materially from those projected in such forward-looking statements are identified in the public filings made by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be considered in light of those factors. Such factors may include risk related to the Company's credit, including that if loan losses are greater than anticipated; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; liquidity risks; the impact of national and local market conditions on the Company's business and operations; the rate of growth (or lack thereof) in the economy generally and in the Company's service areas; the effects of significant changes to the structure and operations of the federal government; 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 effects of fiscal challenges facing the U.S. government or any potential government shutdown; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); the costs of complying with extensive governmental regulation; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; and other risk factors described from time to time in the Company's public filings, including, but not limited to, the Company's most recent Annual Report on Form 10-K. Relative to the Company's dividend policy, the payment of cash dividends is subject to the discretion of the Board of Directors and will be determined in light of then-current conditions, including the Company's earnings, leverage, operations, financial conditions, capital requirements and other factors deemed relevant by the Board of Directors. In the future, the Board of Directors may change the Company's dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions. FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN THREE MONTHS ENDED MARCH 31, 2025 AND 2024 (Dollars in Thousands) (Unaudited) Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 AverageBalance Interest AnnualizedYield/Rate % AverageBalance Interest AnnualizedYield/Rate % ASSETS Interest-earning assets: Loans $ 824,531 $ 12,241 6.02 % $ 821,984 $ 12,853 6.29 % Investment securities 166,241 1,412 3.44 % 134,719 865 2.58 % Federal Home Loan Bank stock 1,341 24 7.26 % 914 18 7.92 % Federal funds sold and securities purchased under reverse repurchase agreements 4,850 53 4.43 % 6,607 89 5.42 % Interest-bearing deposits in banks 26,220 288 4.45 % 33,004 452 5.51 % Total interest-earning assets 1,023,183 14,018 5.56 % 997,228 14,277 5.76 % Noninterest-earning assets 64,155 67,790 Total assets $ 1,087,338 $ 1,065,018 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits: Demand deposits $ 212,130 493 0.94 % $ 201,261 252 0.50 % Money market/savings deposits 257,046 1,544 2.44 % 260,420 1,884 2.91 % Time deposits 330,241 2,832 3.48 % 336,822 2,963 3.54 % Total interest-bearing deposits 799,417 4,869 2.47 % 798,503 5,099 2.57 % Noninterest-bearing demand deposits 155,294 — — 149,613 — — Total deposits 954,711 4,869 2.07 % 948,116 5,099 2.16 % Borrowings 23,404 252 4.37 % 14,545 138 3.82 % Total funding liabilities 978,115 5,121 2.12 % 962,661 5,237 2.19 % Other noninterest-bearing liabilities 9,489 10,712 Shareholders' equity 99,734 91,645 Total liabilities and shareholders' equity $ 1,087,338 $ 1,065,018 Net interest income $ 8,897 $ 9,040 Net interest margin 3.53 % 3.65 % FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Share and Per Share Data) March 31, December 31, 2025 2024 (Unaudited) ASSETS Cash and due from banks $ 10,547 $ 10,633 Interest-bearing deposits in banks 45,494 36,583 Total cash and cash equivalents 56,041 47,216 Federal funds sold and securities purchased under reverse repurchase agreements 5,451 5,727 Investment securities available-for-sale, at fair value (amortized cost $165,341 and $174,597; net of allowance for credit losses of $- and $-) 161,314 167,888 Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses of $- and $-, (fair value 2025 - $602, 2024 - $642) 632 682 Federal Home Loan Bank stock, at cost 1,978 1,256 Loans and leases held for investment 848,335 823,039 Less allowance for credit losses on loans and leases 10,405 10,184 Net loans and leases held for investment 837,930 812,855 Premises and equipment, net of accumulated depreciation 24,558 24,803 Cash surrender value of bank-owned life insurance 17,145 17,056 Accrued interest receivable 3,763 3,588 Goodwill and core deposit intangible, net 7,465 7,484 Other real estate owned 1,328 1,509 Other assets 9,362 11,022 Total assets $ 1,126,967 $ 1,101,086 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest-bearing $ 153,747 $ 155,945 Interest-bearing 808,205 816,612 Total deposits 961,952 972,557 Accrued interest expense 1,698 1,751 Other liabilities 6,196 7,282 Short-term borrowings 45,000 10,000 Long-term borrowings 10,890 10,872 Total liabilities 1,025,736 1,002,462 Shareholders' equity: Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,899,625 and 7,840,348 shares issued, respectively; 5,739,286 and 5,696,171 shares outstanding, respectively 79 78 Additional paid-in capital 15,308 15,540 Accumulated other comprehensive loss, net of tax (2,674) (4,344) Retained earnings 118,236 116,865 Less treasury stock: 2,160,339 and 2,144,177 shares at cost, respectively (29,718) (29,515) Total shareholders' equity 101,231 98,624 Total liabilities and shareholders' equity $ 1,126,967 $ 1,101,086 FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) Three Months Ended March 31, 2025 2024 (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 12,241 $ 12,853 Interest on investment securities 1,412 865 Interest on deposits in banks 288 452 Other 77 107 Total interest income 14,018 14,277 Interest expense: Interest on deposits 4,869 5,099 Interest on borrowings 252 138 Total interest expense 5,121 5,237 Net interest income 8,897 9,040 Provision for credit losses 528 - Net interest income after provision for credit losses 8,369 9,040 Non-interest income: Service and other charges on deposit accounts 288 299 Lease income 284 257 Other income, net 303 309 Total non-interest income 875 865 Non-interest expense: Salaries and employee benefits 3,736 4,088 Net occupancy and equipment 875 894 Computer services 412 443 Insurance expense and assessments 384 391 Fees for professional services 215 341 Other expense 1,296 990 Total non-interest expense 6,918 7,147 Income before income taxes 2,326 2,758 Provision for income taxes 554 651 Net income $ 1,772 $ 2,107 Basic net income per share $ 0.30 $ 0.36 Diluted net income per share $ 0.29 $ 0.34 Dividends per share $ 0.07 $ 0.05 Non-GAAP Financial Measures In addition to the financial results presented in this press release that have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company's management believes that certain non-GAAP financial measures and ratios are beneficial to the reader. These non-GAAP measures have been provided to enhance overall understanding of the Company's current financial performance and position. Management believes that these presentations provide meaningful comparisons of financial performance and position in various periods and can be used as a supplement to the GAAP-based measures presented in this press release. The non-GAAP financial results presented should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Management believes that both GAAP measures of the Company's financial performance and the respective non-GAAP measures should be considered together. The non-GAAP measures and ratios that have been provided in this press release include measures of liquidity, tangible assets and equity and certain ratios that include tangible assets and equity. Discussion of these measures and ratios is included below, along with reconciliations of such non-GAAP measures to GAAP amounts included in the consolidated financial statements previously presented in this press release. Liquidity Measures The table below provides information combining the Company's on-balance sheet liquidity with readily available off-balance sheet sources of liquidity as of both March 31, 2025 and December 31, 2024. March 31, 2025 December 31, 2024 (Dollars in Thousands) (Unaudited) (Unaudited) Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements: Cash and cash equivalents $ 56,041 $ 47,216 Federal funds sold and securities purchased under reverse repurchase agreements 5,451 5,727 Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements 61,492 52,943 Liquidity from pledgable investment securities: Investment securities available-for sale, at fair value 161,314 167,888 Investment securities held-to-maturity, at amortized cost 632 682 Less: securities pledged (62,563) (72,110) Less: estimated collateral value discounts (10,319) (10,164) Total liquidity from pledgable investment securities 89,064 86,296 Liquidity from unused lendable collateral (loans) at FHLB 9,180 45,388 Liquidity from unused lendable collateral (loans and securities) at FRB 160,043 165,061 Unsecured lines of credit with banks 48,000 48,000 Total readily available liquidity $ 367,779 $ 397,688 The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company's consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the FHLB and FRB, as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are non-GAAP measures used by management and regulators to analyze a portion of the Company's liquidity. Management uses these measures to evaluate the Company's liquidity position. Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-to-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheet, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value. The unused lendable collateral value at the FHLB presented in the table represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of March 31, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $285.3 million and $319.9 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company's on-balance sheet and other readily available liquidity provide strong indicators of the Company's ability to fund obligations in a stressed liquidity environment. Excluding wholesale brokered deposits, as of March 31, 2025, the Company had approximately 29 thousand deposit accounts with an average balance of approximately $30.0 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $202.6 million, or 21.1% of total deposits, as of March 31, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits. Tangible Balances and Measures In addition to capital ratios defined by GAAP and banking regulators, the Company utilizes various tangible common equity measures when evaluating capital utilization and adequacy. These measures, which are presented in the financial tables in this press release, may also include calculations of tangible assets. As defined by the Company, tangible common equity represents shareholders' equity less goodwill and identifiable intangible assets, while tangible assets represent total assets less goodwill and identifiable intangible assets. Management believes that the measures of tangible equity are important because they reflect the level of capital available to withstand unexpected market conditions. In addition, presentation of these measures allows readers to compare certain aspects of the Company's capitalization to other organizations. In management's experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets that typically result from the use of the purchase accounting method in accounting for mergers and acquisitions. These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these measures, management believes that there are no comparable GAAP financial measures to the tangible common equity ratios that the Company utilizes. Despite the importance of these measures to the Company, there are no standardized definitions for the measures, and, therefore, the Company's calculations may not be comparable with those of other organizations. In addition, there may be limits to the usefulness of these measures to investors. Accordingly, management encourages readers to consider the Company's consolidated financial statements in their entirety and not to rely on any single financial measure. The table below reconciles the Company's calculations of these measures to amounts reported in accordance with GAAP. Quarter Ended 2025 2024 March 31, December31, September 30, June30, March31, (Dollars in Thousands, Except Per Share Data) (Unaudited Reconciliation) TANGIBLE BALANCES Total assets $1,126,967 $1,101,086 $1,100,235 $1,083,313 $1,070,541 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 30 49 67 97 134 Tangible assets (a) $1,119,502 $1,093,602 $1,092,733 $1,075,781 $1,062,972 Total shareholders' equity $101,231 $98,624 $98,491 $93,836 $92,326 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 30 49 67 97 134 Tangible common equity (b) $93,766 $91,140 $90,989 $86,304 $84,757 Average shareholders' equity $99,734 $98,618 $96,000 $92,682 $91,645 Less: Average goodwill 7,435 7,435 7,435 7,435 7,435 Less: Average core deposit intangible 39 58 80 115 151 Average tangible shareholders' equity (c) $92,260 $91,125 $88,485 $85,132 $84,059 Net income (d) $1,772 $1,714 $2,222 $2,127 $2,107 Common shares outstanding (in thousands) (e) 5,739 5,696 5,715 5,744 5,787 TANGIBLE MEASURES Tangible book value per common share (b)/(e) $16.34 $16.00 $15.92 $15.03 $14.65 Tangible common equity to tangible assets (b)/(a) 8.38 % 8.33 % 8.33 % 8.02 % 7.97 % Return on average tangible common equity (annualized) (1) 7.79 % 7.49 % 9.99 % 10.05 % 10.08 % (1) Calculation of Return on average tangible common equity (annualized) = ((net income (d) / number of days in period) * number of days in year) / average tangible shareholders' equity (c) Contact: Thomas S. Elley 205-582-1200 SOURCE First US Bancshares, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

First US Bancshares, Inc. Reports First Quarter 2025 Results

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