1. FUSB's 4Q2024 net income fell to $1.7 million from $2.2 million. 2. Total deposits decreased by $8.6 million, affecting liquidity concerns. 3. Nonperforming assets rose to $5.4 million, indicating potential credit risk. 4. The company increased dividends to $0.07, signaling continued confidence. 5. Loan growth is shifting towards construction and commercial real estate.
The decline in net income and rise in nonperforming assets show potential risks, which may limit upside in price. However, increased dividends and loan growth are positive indicators; therefore, the overall impact is neutral. Past examples include fluctuating earnings affecting stock price movements unpredictably.
The report highlights key financial shifts and dividend changes that are crucial to investor decision-making. Such developments can impact FUSB's market perception and valuation significantly.
Immediate financial performance will likely impact investor sentiment in the near term. Historical trends demonstrate such short-term effects influence price more than long-term outlooks.
| Period | Net Income | Diluted Earnings per share | Return on average assets (annualized) | Return on average common equity (annualized) | Return on average tangible common 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.
| Quarter Ended | 2024 | 2023 |
|---|---|---|
| December 31 | $14,420 | $13,945 |
| September 30 | $15,017 | $15,017 |
| June 30 | $14,546 | $14,546 |
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.
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."