First US Bancshares, Inc. Reports Fourth Quarter and Full-Year 2024 Earnings

, /PRNewswire/ -- Fourth Quarter and Full-Year Highlights: Period Net Income Diluted Earnings per share Return on average assets (annualized) Return on average commonequity (annualized) Return on average tangiblecommon equity (annualized) (1) 4Q2024 $1.7 million $0.29 0.63 % 6.92 % 7.49 % Full-Year 2024 $8.2 million $1.33 0.76 % 8.62 % 9.37 % 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 $0.29 per diluted share, for the quarter ended December 31, 2024 ("4Q2024"), compared to $2.2 million, or $0.36 per diluted share, for the quarter ended September 30, 2024 ("3Q2024") and $2.3 million, or $0.36 per diluted share, for the quarter ended December 31, 2023 ("4Q2023"). For the year ended December 31, 2024, net income totaled $8.2 million, or $1.33 per diluted share, compared to $8.5 million, or $1.33 per diluted share, for the year ended December 31, 2023. The table below summarizes selected financial data for each of the periods presented. Quarter Ended Year Ended 2024 2023 2024 2023 December 31, September30, June 30, March31, December 31, December 31, December 31, Results of Operations: (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income $ 14,420 $ 15,017 $ 14,546 $ 14,277 $ 13,945 $ 58,260 $ 52,806 Interest expense 5,672 5,832 5,370 5,237 4,835 22,111 15,456 Net interest income 8,748 9,185 9,176 9,040 9,110 36,149 37,350 Provision for (recovery of) credit losses 470 152 - - (434) 622 319 Net interest income after provision for (recovery of) credit losses 8,278 9,033 9,176 9,040 9,544 35,527 37,031 Non-interest income 982 901 835 865 916 3,583 3,381 Non-interest expense 6,947 6,990 7,272 7,147 7,401 28,356 29,141 Income before income taxes 2,313 2,944 2,739 2,758 3,059 10,754 11,271 Provision for income taxes 599 722 612 651 782 2,584 2,786 Net income $ 1,714 $ 2,222 $ 2,127 $ 2,107 $ 2,277 $ 8,170 $ 8,485 Per Share Data: Basic net income per share $ 0.30 $ 0.38 $ 0.36 $ 0.36 $ 0.38 $ 1.40 $ 1.42 Diluted net income per share $ 0.29 $ 0.36 $ 0.34 $ 0.34 $ 0.36 $ 1.33 $ 1.33 Dividends declared $ 0.07 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.22 $ 0.20 Key Measures (Period End): Total assets $ 1,101,086 $ 1,100,235 $ 1,083,313 $ 1,070,541 $ 1,072,940 Tangible assets (1) 1,093,602 1,092,733 1,075,781 1,062,972 1,065,334 Total loans 823,039 803,308 819,126 822,941 821,791 Allowance for credit losses ("ACL") on loans and leases 10,184 10,116 10,227 10,436 10,507 Investment securities, net 168,570 145,044 144,876 126,363 136,669 Total deposits 972,557 981,149 954,455 943,268 950,191 Short-term borrowings 10,000 - 15,000 15,000 10,000 Long-term borrowings 10,872 10,854 10,836 10,817 10,799 Total shareholders' equity 98,624 98,491 93,836 92,326 90,593 Tangible common equity (1) 91,140 90,989 86,304 84,757 82,987 Book value per common share 17.31 17.23 16.34 15.95 15.80 Tangible book value per common share (1) 16.00 15.92 15.03 14.65 14.47 Key Ratios: Return on average assets (annualized) 0.63 % 0.82 % 0.80 % 0.80 % 0.86 % 0.76 % 0.82 % Return on average common equity (annualized) 6.92 % 9.21 % 9.23 % 9.25 % 10.31 % 8.62 % 9.88 % Return on average tangible common equity (annualized) (1) 7.49 % 9.99 % 10.05 % 10.08 % 11.29 % 9.37 % 10.85 % Net interest margin 3.41 % 3.60 % 3.69 % 3.65 % 3.67 % 3.59 % 3.87 % Efficiency ratio (2) 71.4 % 69.3 % 72.6 % 72.2 % 73.8 % 71.4 % 71.5 % Total loans to deposits 84.6 % 81.9 % 85.8 % 87.2 % 86.5 % Total loans to assets 74.7 % 73.0 % 75.6 % 76.9 % 76.6 % Common equity to total assets 8.96 % 8.95 % 8.66 % 8.62 % 8.44 % Tangible common equity to tangible assets (1) 8.33 % 8.33 % 8.02 % 7.97 % 7.79 % Tier 1 leverage ratio (3) 9.50 % 9.49 % 9.46 % 9.37 % 9.36 % ACL on loans and leases as % of total loans 1.24 % 1.26 % 1.25 % 1.27 % 1.28 % Nonperforming assets as % of total assets 0.50 % 0.60 % 0.27 % 0.28 % 0.28 % Net charge-offs as a percentage of average loans 0.24 % 0.12 % 0.10 % 0.09 % 0.19 % 0.14 % 0.14 % (1) Refer to Non-GAAP reconciliation of tangible balances and measures beginning on page 9. (2) Efficiency ratio = non-interest expense / (net interest income + non-interest income) (3) First US Bank Tier 1 leverage ratio CEO Commentary "While 2024 was a challenging year from a loan growth standpoint, we were able to maintain diluted earnings per share at a level consistent with the previous year," stated James F. House, President and CEO of the Company. "In the fourth quarter, we saw an uptick in loan growth throughout our lending platforms, and we continued to enhance yield on our investment portfolio through opportunistic purchases. As we start 2025, our team continues to focus on opportunities to grow earning assets and reduce funding costs in a manner consistent with the changing interest rate environment," continued Mr. House. Financial Results Loans and Leases – The table below summarizes loan balances by portfolio category as of the end of each of the most recent five quarters. Quarter Ended 2024 2023 December31, September30, June30, March31, December31, (Dollars in Thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Real estate loans: Construction, land development and other land loans $65,537 $53,098 $72,183 $102,282 $88,140 Secured by 1-4 family residential properties 69,999 70,067 70,272 74,361 76,200 Secured by multi-family residential properties 101,057 100,627 97,527 62,145 62,397 Secured by non-farm, non-residential properties 227,751 224,611 218,386 212,465 213,586 Commercial and industrial loans 44,238 44,872 46,249 57,112 60,515 Consumer loans: Direct 4,774 5,018 5,272 5,590 5,938 Branch retail 5,558 6,233 6,879 7,794 8,670 Indirect 304,125 298,782 302,358 301,192 306,345 Total loans and leases held for investment $823,039 $803,308 $819,126 $822,941 $821,791 Allowance for credit losses on loans and leases 10,184 10,116 10,227 10,436 10,507 Net loans and leases held for investment $812,855 $793,192 $808,899 $812,505 $811,284 Total loan volume increased by $19.7 million, or 2.5%, in 4Q2024, driven primarily by growth in construction, consumer indirect, and commercial real estate (secured by non-farm, non-residential property) lending. For the year ended December 31, 2024, total loans increased by $1.2 million, or 0.2%. Total loan volume averaged $818.5 million during the year ended December 31, 2024, compared to $795.4 million during the year ended December 31, 2023. Net Interest Income and Margin – Net interest income decreased by $0.4 million comparing 4Q2024 to both 3Q2024 and 4Q2023. Net interest margin totaled 3.41% for 4Q2024, compared to 3.60% for 3Q2024 and 3.67% for 4Q2023. The decrease in net interest income and margin in 4Q2024 compared to 3Q2024 was primarily driven by reductions in the federal funds rate and market interest rates. From September 2024 through December 2024, the federal funds rate was reduced by 100 basis points and similar reductions occurred on certain market interest rates that are used to price the Company's variable rate loans. Amid these interest rate reductions, the Company's earning assets repriced more quickly than its interest-bearing liabilities. Comparing 4Q2024 to 4Q2023, net interest income and margin decreased primarily due to the higher cost of interest-bearing liabilities in 2024 relative to 2023. While total funding costs decreased by seven basis points during 4Q2024, compared to 3Q2024, they remained 30 basis points higher than 4Q2023. For the year ended December 31, 2024, net interest income totaled $36.1 million, compared to $37.4 million for the year ended December 31, 2023. Net interest margin totaled 3.59% for the year ended December 31, 2024, compared to 3.87% for the year ended December 31, 2023. Deposits – Total deposits decreased by $8.6 million, or 0.9%, during 4Q2024, primarily due to the payoff of $10.0 million in callable wholesale brokered time deposits during the quarter. The brokered time deposits were paid off in an effort to reduce the Company's interest expense over time, while increasing reliance on core deposits. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $837.7 million, or 86.1% of total deposits, as of December 31, 2024, compared to $833.5 million, or 85.0% of total deposits, as of September 30, 2024, and $819.5 million, or 86.2% of total deposits, as of December 31, 2023. Deployment of Funds – As of December 31, 2024, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $52.9 million, or 4.8% of total assets, compared to $59.8 million, or 5.6% of total assets, as of December 31, 2023. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $168.6 million as of December 31, 2024, compared to $136.7 million as of December 31, 2023. During the year ended December 31, 2024, the Company invested $58.0 million in taxable U.S. agency-sponsored bonds, resulting in improved yields in the investment portfolio. Of this amount, $30.5 million was purchased in 4Q2024. As of December 31, 2024, the expected average life of securities in the investment portfolio was 3.6 years, compared to 3.9 years as of December 31, 2023. Provision for Credit Losses – During 4Q2024, the Company recorded a provision for credit losses of $0.5 million, compared to a provision for credit losses of $0.2 million in 3Q2024 and a recovery of credit losses of $0.4 million during 4Q2023. The provision for credit losses taken in 4Q2024 resulted primarily from loan growth during the quarter, as well as an increase in the allowance for credit losses ("ACL") on individually evaluated loans and adjustments in economic forecasts that impact the calculation of the ACL on loans and leases. For the year ended December 31, 2024, the provision for credit losses totaled $0.6 million, compared to $0.3 million for the year ended December 31, 2023. As of December 31, 2024, the Company's ACL on loans and leases as a percentage of total loans was 1.24%, compared to 1.28% as of December 31, 2023. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned ("OREO"), totaled $5.4 million as of December 31, 2024, compared to $3.0 million as of December 31, 2023. The increase in nonperforming assets during 2024 resulted primarily from one loan that was foreclosed and moved into OREO and another loan that moved into non-accrual status during 2024. As a percentage of total assets, nonperforming assets totaled 0.50% as of December 31, 2024, compared to 0.28% as of December 31, 2023. Net charge-offs as a percentage of average loans totaled 0.14% during both the years ended December 31, 2024 and 2023. Non-interest Income – Non-interest income totaled $1.0 million in 4Q2024, compared to $0.9 million in both 3Q2024 and 4Q2023. For the year ended December 31, 2024, non-interest income totaled $3.6 million, compared to $3.4 million for the year ended December 31, 2023. Non-interest Expense – Non-interest expense totaled $6.9 million in 4Q2024, compared to $7.0 million in 3Q2024, and $7.4 million in 4Q2023. For the year ended December 31, 2024, non-interest expense totaled $28.4 million, compared to $29.1 million for the year ended December 31, 2023. The expense reduction comparing both 4Q2024 and full-year 2024 to the corresponding periods of 2023 resulted primarily from decreases in salaries and benefits and other expense categories. Salaries and benefits expense decreased during 2024 primarily due to lower staff levels resulting from strategic initiatives implemented by the Company in prior years. In addition, other expenses were lower during 2024 compared to 2023, primarily due to the recovery of check fraud losses and reduced collection expenses. The reductions in non-interest expense during the year ended December 31, 2024 were partially offset by increased occupancy and equipment expenses. Shareholders' Equity – As of December 31, 2024, shareholders' equity totaled $98.6 million, or 8.96% of total assets, compared to $90.6 million, or 8.44% of total assets, as of December 31, 2023. The increase in shareholders' equity during the year ended December 31, 2024 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 2024 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 8.33% as of December 31, 2024, compared to 7.79% as of December 31, 2023. Cash Dividend – The Company increased its cash dividend to $0.07 per share on its common stock in 4Q2024, compared to $0.05 per share during each previous quarter of 2024 and 2023. For the year ended December 31, 2024, cash dividends totaled $0.22 per share, compared to $0.20 per share for the year ended December 31, 2023. Share Repurchases – During 4Q2024, the Company completed the repurchase of 40,000 shares of its common stock at a weighted average price of $12.68 per share. The repurchases were completed under the Company's previously announced share repurchase program which was expanded in 4Q2024 to authorize the purchase of 600,000 additional shares. For the year ended December 31, 2024, the Company repurchased a total of 146,500 shares at a weighted average price of $11.22 per share. As of December 31, 2024, 912,813 shares remained available for repurchase under the program. Regulatory Capital – During 4Q2024, 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, 2024, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.31%, its total capital ratio was 12.47%, and its Tier 1 leverage ratio was 9.50%. Liquidity – As of December 31, 2024, 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, Federal Home Loan Bank (FHLB) advances, the discount window of the Federal Reserve Bank (FRB), and brokered deposits. Banking Center Growth – As part of the Company's overall growth strategy, during the year ended December 31, 2024, the Company opened a new banking center in the Bearden area of Knoxville, Tennessee that replaced the Bank's previously existing Knoxville-Bearden location. In addition, the Company commenced 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, and it is anticipated that the location will open to the public in 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; 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; 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 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 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 SUBSIDIARIES NET INTEREST MARGIN THREE MONTHS ENDED DECEMBER 31, 2024 AND 2023 (Dollars in Thousands) (Unaudited) Three Months Ended Three Months Ended December 31, 2024 December 31, 2023 AverageBalance Interest AnnualizedYield/Rate % AverageBalance Interest AnnualizedYield/Rate % ASSETS Interest-earning assets: Total loans $ 811,125 $ 12,480 6.12 % $ 803,407 $ 12,419 6.13 % Taxable investment securities 158,283 1,303 3.27 % 131,547 825 2.49 % Tax-exempt investment securities 1,015 3 1.18 % 1,026 3 1.16 % Federal Home Loan Bank stock 858 16 7.42 % 1,015 18 7.04 % Federal funds sold and securities purchased under reverserepurchase agreements 10,951 140 5.09 % 4,579 63 5.46 % Interest-bearing deposits in banks 38,341 478 4.96 % 44,574 617 5.49 % Total interest-earning assets 1,020,573 14,420 5.62 % 986,148 13,945 5.61 % Noninterest-earning assets 65,498 64,530 Total $ 1,086,071 $ 1,050,678 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits: Demand deposits $ 207,890 538 1.03 % $ 198,846 221 0.44 % Savings deposits 255,480 1,694 2.64 % 250,322 1,728 2.74 % Time deposits 346,412 3,299 3.79 % 330,003 2,720 3.27 % Total interest-bearing deposits 809,782 5,531 2.72 % 779,171 4,669 2.38 % Noninterest-bearing demand deposits 155,034 — — 156,189 — — Total deposits 964,816 5,531 2.28 % 935,360 4,669 1.98 % Borrowings 12,493 141 4.49 % 16,986 166 3.88 % Total funding costs 977,309 5,672 2.31 % 952,346 4,835 2.01 % Other noninterest-bearing liabilities 10,144 10,717 Shareholders' equity 98,618 87,615 Total $ 1,086,071 $ 1,050,678 Net interest income $ 8,748 $ 9,110 Net interest margin 3.41 % 3.67 % FIRST US BANCSHARES, INC. AND SUBSIDIARIES NET INTEREST MARGIN YEAR ENDED DECEMBER 31, 2024 AND 2023 (Dollars in Thousands) (Unaudited) Year Ended Year Ended December 31, 2024 December 31, 2023 AverageBalance Interest Annualized Yield/Rate % AverageBalance Interest Annualized Yield/Rate % ASSETS Interest-earning assets: Total loans $ 818,524 $ 51,469 6.29 % $ 795,446 $ 47,749 6.00 % Taxable investment securities 144,503 4,387 3.04 % 127,653 2,858 2.24 % Tax-exempt investment securities 1,020 13 1.27 % 1,042 13 1.25 % Federal Home Loan Bank stock 891 69 7.74 % 1,264 93 7.36 % Federal funds sold and securities purchasedunder reverse repurchase agreements 6,930 366 5.28 % 1,841 95 5.16 % Interest-bearing deposits in banks 36,399 1,956 5.37 % 38,111 1,998 5.24 % Total interest-earning assets 1,008,267 58,260 5.78 % 965,357 52,806 5.47 % Noninterest-earning assets 65,931 63,765 Total $ 1,074,198 $ 1,029,122 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits: Demand deposits $ 205,581 1,779 0.87 % $ 212,010 777 0.37 % Savings deposits 251,772 6,856 2.72 % 229,238 5,007 2.18 % Time deposits 346,541 12,914 3.73 % 305,848 8,566 2.80 % Total interest-bearing deposits 803,894 21,549 2.68 % 747,096 14,350 1.92 % Noninterest-bearing demand deposits 152,252 — — 160,598 — — Total deposits 956,146 21,549 2.25 % 907,694 14,350 1.58 % Borrowings 13,404 562 4.19 % 26,252 1,106 4.21 % Total funding costs 969,550 22,111 2.28 % 933,946 15,456 1.65 % Other noninterest-bearing liabilities 9,898 9,302 Shareholders' equity 94,750 85,874 Total $ 1,074,198 $ 1,029,122 Net interest income $ 36,149 $ 37,350 Net interest margin 3.59 % 3.87 % FIRST US BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Per Share Data) December 31, December 31, 2024 2023 (Unaudited) ASSETS Cash and due from banks $ 10,633 $ 12,987 Interest-bearing deposits in banks 36,583 37,292 Total cash and cash equivalents 47,216 50,279 Federal funds sold and securities purchased under reverse repurchase agreements 5,727 9,475 Investment securities available-for-sale, at fair value 167,888 135,565 Investment securities held-to-maturity, at amortized cost 682 1,104 Federal Home Loan Bank stock, at cost 1,256 1,201 Loans and leases held for investment 823,039 821,791 Less allowance for credit losses on loans and leases 10,184 10,507 Net loans and leases held for investment 812,855 811,284 Premises and equipment, net of accumulated depreciation 24,803 24,398 Cash surrender value of bank-owned life insurance 17,056 16,702 Accrued interest receivable 3,588 3,976 Goodwill and core deposit intangible, net 7,484 7,606 Other real estate owned 1,509 602 Other assets 11,022 10,748 Total assets $ 1,101,086 $ 1,072,940 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest-bearing $ 155,945 $ 153,591 Interest-bearing 816,612 796,600 Total deposits 972,557 950,191 Accrued interest expense 1,751 2,030 Other liabilities 7,282 9,327 Short-term borrowings 10,000 10,000 Long-term borrowings 10,872 10,799 Total liabilities 1,002,462 982,347 Shareholders' equity: Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,840,348 and 7,738,201 shares issued, respectively; 5,696,171 and 5,735,075 shares outstanding, respectively 78 75 Additional paid-in capital 15,540 14,972 Accumulated other comprehensive loss, net of tax (4,344) (6,431) Retained earnings 116,865 109,959 Less treasury stock: 2,144,177 and 2,003,126 shares at cost, respectively (29,515) (27,982) Total shareholders' equity 98,624 90,593 Total liabilities and shareholders' equity $ 1,101,086 $ 1,072,940 FIRST US BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 12,480 $ 12,419 $ 51,469 $ 47,749 Interest on investment securities 1,306 828 4,400 2,871 Interest on deposits in banks 478 617 1,956 1,998 Other 156 81 435 188 Total interest income 14,420 13,945 58,260 52,806 Interest expense: Interest on deposits 5,531 4,669 21,549 14,350 Interest on borrowings 141 166 562 1,106 Total interest expense 5,672 4,835 22,111 15,456 Net interest income 8,748 9,110 36,149 37,350 Provision for (recovery of) credit losses 470 (434) 622 319 Net interest income after provision for (recovery of) credit losses 8,278 9,544 35,527 37,031 Non-interest income: Service and other charges on deposit accounts 323 328 1,232 1,197 Lease income 263 242 1,033 949 Other income, net 396 346 1,318 1,235 Total non-interest income 982 916 3,583 3,381 Non-interest expense: Salaries and employee benefits 3,645 3,766 15,460 16,076 Net occupancy and equipment 955 854 3,761 3,479 Computer services 351 441 1,687 1,756 Insurance expense and assessments 357 427 1,510 1,583 Fees for professional services 180 370 1,184 1,105 Other expense 1,459 1,543 4,754 5,142 Total non-interest expense 6,947 7,401 28,356 29,141 Income before income taxes 2,313 3,059 10,754 11,271 Provision for income taxes 599 782 2,584 2,786 Net income $ 1,714 $ 2,277 $ 8,170 $ 8,485 Basic net income per share $ 0.30 $ 0.38 $ 1.40 $ 1.42 Diluted net income per share $ 0.29 $ 0.36 $ 1.33 $ 1.33 Dividends per share $ 0.07 $ 0.05 $ 0.22 $ 0.20 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 December 31, 2024 and December 31, 2023. December 31, 2024 December 31, 2023 (Dollars in Thousands) (Unaudited) (Unaudited) Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements: Cash and cash equivalents $ 47,216 $ 50,279 Federal funds sold and securities purchased under reverse repurchase agreements 5,727 9,475 Total liquidity from cash, federal funds sold and securities purchased under reverserepurchase agreements 52,943 59,754 Liquidity from pledgable investment securities: Investment securities available-for sale, at fair value 167,888 135,565 Investment securities held-to-maturity, at amortized cost 682 1,104 Less: securities pledged (72,110) (41,375) Less: estimated collateral value discounts (10,164) (11,129) Total liquidity from pledgable investment securities 86,296 84,165 Liquidity from unused lendable collateral (loans) at FHLB 45,388 21,696 Liquidity from unused lendable collateral (loans and securities) at FRB 165,061 161,729 Unsecured lines of credit with banks 48,000 48,000 Total readily available liquidity $ 397,688 $ 375,344 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 December 31, 2024 and December 31, 2023, the Company's total remaining credit availability with the FHLB was $319.9 million and $279.4 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 December 31, 2024, the Company had approximately 29 thousand deposit accounts with an average balance of approximately $31.0 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 $216.8 million, or 22.2% of total deposits, as of December 31, 2024. As of December 31, 2023, estimated uninsured deposits totaled $200.3 million, or 21.1% 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 Year Ended 2024 2023 2024 2023 December 31, September30, June 30, March31, December31, December31, December31, (Dollars in Thousands, Except Per Share Data) (Unaudited Reconciliation) TANGIBLE BALANCES Total assets $1,101,086 $1,100,235 $1,083,313 $1,070,541 $1,072,940 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 49 67 97 134 171 Tangible assets (a) $1,093,602 $1,092,733 $1,075,781 $1,062,972 $1,065,334 Total shareholders' equity $98,624 $98,491 $93,836 $92,326 $90,593 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 49 67 97 134 171 Tangible common equity (b) $91,140 $90,989 $86,304 $84,757 $82,987 Average shareholders' equity $98,618 $96,000 $92,682 $91,645 $87,615 $94,750 $85,874 Less: Average goodwill 7,435 7,435 7,435 7,435 7,435 7,435 7,435 Less: Average core deposit intangible 58 80 115 151 188 101 259 Average tangible shareholders' equity (c) $91,125 $88,485 $85,132 $84,059 $79,992 $87,214 $78,180 Net income (d) $1,714 $2,222 $2,127 $2,107 $2,277 $8,170 $8,485 Common shares outstanding(in thousands) (e) 5,696 5,715 5,744 5,787 5,735 TANGIBLE MEASURES Tangible book value per common share (b)/(e) $16.00 $15.92 $15.03 $14.65 $14.47 Tangible common equity to tangible assets (b)/(a) 8.33 % 8.33 % 8.02 % 7.97 % 7.79 % Return on average tangible common equity (annualized) (1) 7.49 % 9.99 % 10.05 % 10.08 % 11.29 % 9.37 % 10.85 % (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 Fourth Quarter and Full-Year 2024 Earnings

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