First US Bancshares, Inc. Reports Second Quarter 2025 Results

, /PRNewswire/ -- Second Quarter Highlights: First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $0.2 million, or $0.03 per diluted share, for the quarter ended June 30, 2025 ("2Q2025"), compared to $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 ("1Q2025") and $2.1 million, or $0.34 per diluted share, for the quarter ended June 30, 2024 ("2Q2024"). For the six months ended June 30, 2025, net income totaled $1.9 million, or $0.32 per diluted share, compared to $4.2 million, or $0.68 per diluted share, for the six months ended June 30, 2024. The decrease in net income in both 2Q2025 and the six months ended June 30, 2025, compared to the previous periods, resulted primarily from an increase in the Company's provision for credit losses on loans and leases. The table below summarizes selected financial data for each of the periods presented. Quarter Ended Six Months Ended 2025 2024 2025 2024 June30, March 31, December31, September30, June30, June30, June30, Results of Operations: (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income $ 14,854 $ 14,018 $ 14,420 $ 15,017 $ 14,546 $ 28,872 $ 28,823 Interest expense 5,378 5,121 5,672 5,832 5,370 10,499 10,607 Net interest income 9,476 8,897 8,748 9,185 9,176 18,373 18,216 Provision for credit losses 2,717 528 470 152 - 3,245 — Net interest income after provision for credit losses 6,759 8,369 8,278 9,033 9,176 15,128 18,216 Non-interest income 849 875 982 901 835 1,724 1,700 Non-interest expense 7,444 6,918 6,947 6,990 7,272 14,362 14,419 Income before income taxes 164 2,326 2,313 2,944 2,739 2,490 5,497 Provision for income taxes 9 554 599 722 612 563 1,263 Net income $ 155 $ 1,772 $ 1,714 $ 2,222 $ 2,127 $ 1,927 $ 4,234 Per Share Data: Basic net income per share $ 0.03 $ 0.30 $ 0.30 $ 0.38 $ 0.36 $ 0.33 $ 0.72 Diluted net income per share $ 0.03 $ 0.29 $ 0.29 $ 0.36 $ 0.34 $ 0.32 $ 0.68 Dividends declared $ 0.07 $ 0.07 $ 0.07 $ 0.05 $ 0.05 $ 0.14 $ 0.10 Key Measures (Period End): Total assets $ 1,143,379 $ 1,126,967 $ 1,101,086 $ 1,100,235 $ 1,083,313 Tangible assets (1) 1,135,932 1,119,502 1,093,602 1,092,733 1,075,781 Total loans 871,431 848,335 823,039 803,308 819,126 Allowance for credit losses ("ACL") on loans andleases 11,388 10,405 10,184 10,116 10,227 Investment securities, net 157,137 161,946 168,570 145,044 144,876 Total deposits 986,846 961,952 972,557 981,149 954,455 Short-term borrowings 35,000 45,000 10,000 - 15,000 Long-term borrowings 10,909 10,890 10,872 10,854 10,836 Total shareholders' equity 101,892 101,231 98,624 98,491 93,836 Tangible common equity (1) 94,445 93,766 91,140 90,989 86,304 Book value per common share 17.70 17.64 17.31 17.23 16.34 Tangible book value per common share (1) 16.41 16.34 16.00 15.92 15.03 Key Ratios: Return on average assets (annualized) 0.06 % 0.66 % 0.63 % 0.82 % 0.80 % 0.35 % 0.80 % Return on average common equity (annualized) 0.61 % 7.21 % 6.92 % 9.21 % 9.23 % 3.86 % 9.24 % Return on average tangible common equity(annualized) (1) 0.66 % 7.79 % 7.49 % 9.99 % 10.05 % 4.17 % 10.06 % Pre-tax pre-provision net revenue to average assets(annualized) (1) 1.03 % 1.06 % 1.02 % 1.14 % 1.03 % 1.05 % 1.04 % Net interest margin 3.59 % 3.53 % 3.41 % 3.60 % 3.69 % 3.56 % 3.67 % Efficiency ratio (2) 72.1 % 70.8 % 71.4 % 69.3 % 72.6 % 71.5 % 72.4 % Total loans to deposits 88.3 % 88.2 % 84.6 % 81.9 % 85.8 % Total loans to assets 76.2 % 75.3 % 74.7 % 73.0 % 75.6 % Common equity to total assets 8.91 % 8.98 % 8.96 % 8.95 % 8.66 % Tangible common equity to tangible assets (1) 8.31 % 8.38 % 8.33 % 8.33 % 8.02 % Tier 1 leverage ratio (3) 9.23 % 9.55 % 9.50 % 9.49 % 9.46 % ACL on loans and leases as % of total loans 1.31 % 1.23 % 1.24 % 1.26 % 1.25 % Nonperforming assets as % of total assets 0.33 % 0.44 % 0.50 % 0.60 % 0.27 % Net charge-offs as a percentage of average loans 0.79 % 0.13 % 0.24 % 0.12 % 0.10 % 0.47 % 0.10 % (1) Refer to the non-GAAP reconciliations beginning on page 10. (2) Efficiency ratio = non-interest expense / (net interest income + non-interest income) (3) First US Bank Tier 1 leverage ratio CEO Commentary "During the second quarter, we recorded a significant provision for credit losses associated with growth in indirect consumer lending, combined with an uptick in net charge-offs in the category, as well as the application of additional reserves on two individually evaluated commercial loans," stated James F. House, President and CEO of the Company. "While the additional provisioning had a pronounced impact on earnings for both the quarter and year-to-date period, we are encouraged by increases in both net interest margin and total loans during the quarter. Net interest margin expanded by six basis points compared to the previous quarter, and total loans grew by 2.7% during the quarter, bringing year-to-date loan growth to 5.9%. Our pre-tax pre-provision net revenue also increased by 0.9% compared to 1Q2025 and by 5.2% compared to 2Q2024," continued Mr. House. "All of these measures help build a solid base for the future." 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 June30, March31, December31, September 30, June30, (Dollars in Thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Real estate loans: Construction, land development and other land loans $48,101 $58,572 $65,537 $53,098 $72,183 Secured by 1-4 family residential properties 67,587 68,523 69,999 70,067 70,272 Secured by multi-family residential properties 118,807 106,374 101,057 100,627 97,527 Secured by non-residential commercial real estate 215,035 214,065 227,751 224,611 218,386 Commercial and industrial loans ("C&I") 40,986 45,166 44,238 44,872 46,249 Consumer loans: Direct 4,836 4,610 4,774 5,018 5,272 Indirect 376,079 351,025 309,683 305,015 309,237 Total loans and leases held for investment $871,431 $848,335 $823,039 $803,308 $819,126 Allowance for credit losses on loans and leases 11,388 10,405 10,184 10,116 10,227 Net loans and leases held for investment $860,043 $837,930 $812,855 $793,192 $808,899 Total loans increased by $23.1 million in 2Q2025, driven primarily by growth of $25.1 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 the six months ended June 30, 2025 was 798, while the weighted average credit score for the entire portfolio was 781. In addition to the indirect portfolio, the Company also grew its multi-family residential real estate loan category by $12.4 million in 2Q2025. Loan growth during 2Q2025 was partially offset by reductions primarily in the construction and C&I categories. Total loan volume averaged $857.7 million during 2Q2025 compared to $824.5 million during 1Q2025 and $819.6 million during 2Q2024. For the six months ended June 30, 2025, average loan balances increased by $20.4 million, or 2.5%, compared to the six months ended June 30, 2024. Net Interest Income and Margin – Net interest income in 2Q2025 increased by $0.6 million, or 6.5%, compared to 1Q2025 and increased by $0.3 million, or 3.3%, compared to 2Q2024. Net interest margin was 3.59% for 2Q2025 compared to 3.53% for 1Q2025 and 3.69% for 2Q2024. The increase in net interest margin compared to the prior quarter resulted from increased average loan volume, as well as increases in yields on loans and investments. The decrease in net interest margin compared to 2Q2024 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2024. For the six months ended June 30, 2025, net interest margin was 3.56% compared to 3.67% for the six months ended June 30, 2024. Provision for Credit Losses – During 2Q2025, the Company recorded a provision for credit losses of $2.7 million, bringing the total provision for credit losses to $3.2 million for the six months ended June 30, 2025. No provision for credit losses was recorded in 2Q2024 or for the six months ended June 30, 2024. In both 2Q2025 and the six months ended June 30, 2025, the provision for credit losses resulted primarily from significant growth in the consumer indirect category, combined with an increase in net charge-offs in the category, as well as from additional reserves on two individually evaluated commercial loans. For 2Q2025, $1.4 million of the provision was associated with the indirect consumer portfolio, while $0.9 million was associated with specific reserves added for the two individually evaluated loans, with the remaining $0.4 million associated with various factors, including changes in economic forecasting data and increases in the allowance for unfunded commitments. For the six months ended June 30, 2025, $2.3 million of the provision was associated with the indirect consumer portfolio, while $0.9 million was associated with specific reserves added for the two individually evaluated loans. As of June 30, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.31%, compared to 1.24% as of December 31, 2024. Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $2.9 million in both 2Q2025 and 1Q2025, compared to $2.7 million in 2Q2024. For the six months ended June 30, 2025, PPNR totaled $5.7 million compared to $5.5 million for the six months ended June 30, 2024. As a percentage of average assets, PPNR totaled 1.03% in 2Q2025 compared to 1.06% in 1Q2025 and 1.03% in 2Q2024. For the six months ended June 30, 2025, PPNR as a percentage of average assets was 1.05% compared to 1.04% for the six months ended June 30, 2024. Refer to the non-GAAP reconciliation of PPNR beginning on page 11. Deposits –Total deposits increased by $24.9 million, or 2.6%, during 2Q2025, due primarily to increases in interest-bearing demand deposit accounts, as well as the addition of brokered certificates of deposit obtained to assist in the management of deposit costs. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $816.1 million, or 82.7% of total deposits, as of June 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. Short-term Borrowings – As of June 30, 2025, the Company had $35.0 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 June 30, 2025 and December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days. The amount outstanding as of June 30, 2025 included $20.0 million borrowed from the Federal Home Loan Bank of Atlanta ("FHLB") and $15.0 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 June 30, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $58.8 million, or 5.1% 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 $157.1 million as of June 30, 2025 compared to $168.6 million as of December 31, 2024. As of June 30, 2025, the expected average life of securities in the investment portfolio was 3.7 years compared to 3.6 years as of December 31, 2024. Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $3.7 million as of June 30, 2025 compared to $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets totaled 0.33% as of June 30, 2025 compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.79% during 2Q2025 compared to 0.13% during 1Q2025 and 0.10% during 2Q2024. For the six months ended June 30, 2025, net charge-offs as a percentage of average loans totaled 0.47% compared to 0.10% for the six months ended June 30, 2024. The increase in net charge-offs in both 2Q2025 and the six months ended June 30, 2025 was due to a partial charge-off of one individually evaluated commercial loan of $1.2 million during 2Q2025, as well as an increase in charge-offs associated with the indirect portfolio. During 2Q2025, net charge-offs associated with the indirect portfolio totaled $0.6 million compared to $0.3 million in both 1Q2025 and 2Q2024. For the six months ended June 30, 2025, net charge-offs associated with the indirect portfolio totaled $0.9 million, compared to $0.5 million for the six months ended June 30, 2024. Non-interest Income – Non-interest income remained relatively consistent, totaling $0.8 million in 2Q2025 compared to $0.9 million in 1Q2025 and $0.8 million in 2Q2024. For both six-month periods ended June 30, 2025 and 2024, non-interest income totaled $1.7 million. Non-interest Expense – Non-interest expense totaled $7.4 million in 2Q2025, compared to $6.9 million in 1Q2025 and $7.3 million in 2Q2024. The expense increase comparing 2Q2025 to 1Q2025 resulted primarily from increases in salaries and benefits and fees for professional services. For both six-month periods ended June 30, 2025 and 2024, non-interest expense totaled $14.4 million. Shareholders' Equity – As of June 30, 2025, shareholders' equity totaled $101.9 million, or 8.91% 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 the six months ended June 30, 2025 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 period 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 8.31% as of June 30, 2025 compared to 8.33% as of December 31, 2024. Cash Dividend – In 2Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 1Q2025. 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 – The Company did not repurchase shares of its common stock during 2Q2025. 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 June 30, 2025, 872,813 shares remained available for repurchase under the program. Regulatory Capital – During 2Q2025, 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 June 30, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.70%, its total capital ratio was 11.93%, and its Tier 1 leverage ratio was 9.23%. Liquidity – As of June 30, 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. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity. Banking Center Growth – During 2Q2025, 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 during the first half of 2026. In addition, at the end of 2Q2025, the Company purchased land in Mobile, Alabama. It is intended that the land will be developed into an office complex that will house the Company's indirect lending operation, as well as provide an additional banking center in the area. 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 JUNE 30, 2025 AND 2024 (Dollars in Thousands) (Unaudited) Three Months Ended Three Months Ended June 30, 2025 June 30, 2024 AverageBalance Interest AnnualizedYield/Rate % AverageBalance Interest AnnualizedYield/Rate % ASSETS Interest-earning assets: Loans $ 857,707 $ 12,989 6.07 % $ 819,590 $ 12,930 6.35 % Investment securities 154,576 1,335 3.46 % 143,112 1,108 3.11 % Federal Home Loan Bank stock 1,320 26 7.90 % 969 19 7.89 % Federal funds sold and securities purchased under reverse repurchase agreements 4,850 53 4.38 % 4,850 66 5.47 % Interest-bearing deposits in banks 40,710 451 4.44 % 30,965 423 5.49 % Total interest-earning assets 1,059,163 14,854 5.63 % 999,486 14,546 5.85 % Noninterest-earning assets 63,179 65,794 Total assets $ 1,122,342 $ 1,065,280 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits: Demand deposits $ 203,734 438 0.86 % $ 203,784 424 0.84 % Money market/savings deposits 273,185 1,743 2.56 % 247,211 1,627 2.65 % Time deposits 356,602 2,944 3.31 % 347,010 3,159 3.66 % Total interest-bearing deposits 833,521 5,125 2.47 % 798,005 5,210 2.63 % Noninterest-bearing demand deposits 155,432 — — 151,117 — — Total deposits 988,953 5,125 2.08 % 949,122 5,210 2.21 % Borrowings 22,966 253 4.42 % 14,838 160 4.34 % Total funding liabilities 1,011,919 5,378 2.13 % 963,960 5,370 2.24 % Other noninterest-bearing liabilities 9,100 8,638 Shareholders' equity 101,323 92,682 Total liabilities and shareholders' equity $ 1,122,342 $ 1,065,280 Net interest income $ 9,476 $ 9,176 Net interest margin 3.59 % 3.69 % FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (Dollars in Thousands) (Unaudited) Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 AverageBalance Interest Annualized Yield/Rate % AverageBalance Interest Annualized Yield/Rate % ASSETS Interest-earning assets: Loans $ 841,210 $ 25,230 6.05 % $ 820,787 $ 25,783 6.32 % Investment securities 160,377 2,747 3.45 % 138,915 1,973 2.86 % Federal Home Loan Bank stock 1,331 50 7.58 % 941 37 7.91 % Federal funds sold and securities purchased underreverse repurchase agreements 4,850 106 4.41 % 5,729 155 5.44 % Interest-bearing deposits in banks 33,505 739 4.45 % 31,985 875 5.50 % Total interest-earning assets 1,041,273 28,872 5.59 % 998,357 28,823 5.81 % Noninterest-earning assets 63,664 66,808 Total assets $ 1,104,937 $ 1,065,165 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits: Demand deposits $ 207,909 930 0.90 % $ 202,522 676 0.67 % Money market/savings deposits 265,160 3,287 2.50 % 253,816 3,511 2.78 % Time deposits 343,494 5,777 3.39 % 341,916 6,122 3.60 % Total interest-bearing deposits 816,563 9,994 2.47 % 798,254 10,309 2.60 % Noninterest-bearing demand deposits 155,363 — — 150,380 — — Total deposits 971,926 9,994 2.07 % 948,634 10,309 2.19 % Borrowings 23,184 505 4.39 % 14,692 298 4.08 % Total funding liabilities 995,110 10,499 2.13 % 963,326 10,607 2.21 % Other noninterest-bearing liabilities 9,294 9,675 Shareholders' equity 100,533 92,164 Total liabilities and shareholders' equity $ 1,104,937 $ 1,065,165 Net interest income $ 18,373 $ 18,216 Net interest margin 3.56 % 3.67 % FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Share and Per Share Data) June 30, December 31, 2025 2024 (Unaudited) ASSETS Cash and due from banks $ 9,380 $ 10,633 Interest-bearing deposits in banks 44,575 36,583 Total cash and cash equivalents 53,955 47,216 Federal funds sold and securities purchased under reverse repurchase agreements 4,850 5,727 Investment securities available-for-sale, at fair value (amortized cost $159,563 and $174,597; net of allowance for credit losses of $- and $-) 156,576 167,888 Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses of $- and $-, (fair value 2025 - $535, 2024 - $642) 561 682 Federal Home Loan Bank stock, at cost 1,741 1,256 Loans and leases held for investment 871,431 823,039 Less allowance for credit losses on loans and leases 11,388 10,184 Net loans and leases held for investment 860,043 812,855 Premises and equipment, net of accumulated depreciation 26,479 24,803 Cash surrender value of bank-owned life insurance 17,198 17,056 Accrued interest receivable 3,867 3,588 Goodwill and core deposit intangible, net 7,447 7,484 Other real estate owned 1,298 1,509 Other assets 9,364 11,022 Total assets $ 1,143,379 $ 1,101,086 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest-bearing $ 150,894 $ 155,945 Interest-bearing 835,952 816,612 Total deposits 986,846 972,557 Accrued interest expense 1,981 1,751 Other liabilities 6,751 7,282 Short-term borrowings 35,000 10,000 Long-term borrowings 10,909 10,872 Total liabilities 1,041,487 1,002,462 Shareholders' equity: Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,920,149 and 7,840,348 shares issued, respectively; 5,755,064 and 5,696,171 shares outstanding, respectively 79 78 Additional paid-in capital 15,619 15,540 Accumulated other comprehensive loss, net of tax (2,065) (4,344) Retained earnings 117,988 116,865 Less treasury stock: 2,165,085 and 2,144,177 shares at cost, respectively (29,729) (29,515) Total shareholders' equity 101,892 98,624 Total liabilities and shareholders' equity $ 1,143,379 $ 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 Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 12,989 $ 12,930 $ 25,230 $ 25,783 Interest on investment securities 1,335 1,108 2,747 1,973 Interest on deposits in banks 451 423 739 875 Other 79 85 156 192 Total interest income 14,854 14,546 28,872 28,823 Interest expense: Interest on deposits 5,125 5,210 9,994 10,309 Interest on borrowings 253 160 505 298 Total interest expense 5,378 5,370 10,499 10,607 Net interest income 9,476 9,176 18,373 18,216 Provision for credit losses 2,717 — 3,245 — Net interest income after provision for credit losses 6,759 9,176 15,128 18,216 Non-interest income: Service and other charges on deposit accounts 278 298 566 597 Lease income 269 253 553 510 Other income, net 302 284 605 593 Total non-interest income 849 835 1,724 1,700 Non-interest expense: Salaries and employee benefits 3,945 3,890 7,681 7,978 Net occupancy and equipment 937 954 1,812 1,848 Computer services 421 444 833 887 Insurance expense and assessments 366 414 750 805 Fees for professional services 470 364 685 705 Other expense 1,305 1,206 2,601 2,196 Total non-interest expense 7,444 7,272 14,362 14,419 Income before income taxes 164 2,739 2,490 5,497 Provision for income taxes 9 612 563 1,263 Net income $ 155 $ 2,127 $ 1,927 $ 4,234 Basic net income per share $ 0.03 $ 0.36 $ 0.33 $ 0.72 Diluted net income per share $ 0.03 $ 0.34 $ 0.32 $ 0.68 Dividends per share $ 0.07 $ 0.05 $ 0.14 $ 0.10 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, pre-tax pre-provision net revenue, 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 June 30, 2025 and December 31, 2024. June 30, 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 $ 53,955 $ 47,216 Federal funds sold and securities purchased under reverse repurchase agreements 4,850 5,727 Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements 58,805 52,943 Liquidity from pledgable investment securities: Investment securities available-for sale, at fair value 156,576 167,888 Investment securities held-to-maturity, at amortized cost 561 682 Less: securities pledged (62,626) (72,110) Less: estimated collateral value discounts (10,311) (10,164) Total liquidity from pledgable investment securities 84,200 86,296 Liquidity from unused lendable collateral (loans) at FHLB 11,175 45,388 Liquidity from unused lendable collateral (loans and securities) at FRB 181,861 165,061 Unsecured lines of credit with banks 48,000 48,000 Total readily available liquidity $ 384,041 $ 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 June 30, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $298.0 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 June 30, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $31.1 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 $202.5 million, or 20.5% of total deposits, as of June 30, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.2% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP. Quarter Ended Six Months Ended 2025 2024 2025 2024 June30, March 31, December31, September 30, June30, June30, June30, (Dollars in Thousands) (Unaudited Reconciliation) Net income $ 155 $ 1,772 $ 1,714 $ 2,222 $ 2,127 $ 1,927 $ 4,234 Add: Provision for income taxes 9 554 599 722 612 563 1,263 Add: Provision for credit losses 2,717 528 470 152 — 3,245 — Pre-tax pre-provision net revenue $ 2,881 $ 2,854 $ 2,783 $ 3,096 $ 2,739 $ 5,735 $ 5,497 Average assets $ 1,122,342 $ 1,087,338 $ 1,086,071 $ 1,080,198 $ 1,065,280 $ 1,104,937 $ 1,065,165 PPNR as a percentage of averageassets (annualized) 1.03 % 1.06 % 1.02 % 1.14 % 1.03 % 1.05 % 1.04 % 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 Six Months Ended 2025 2024 2025 2024 June30, March 31, December31, September 30, June30, June30, June30, (Dollars in Thousands, Except Per Share Data) (Unaudited Reconciliation) TANGIBLE BALANCES Total assets $1,143,379 $1,126,967 $1,101,086 $1,100,235 $1,083,313 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 12 30 49 67 97 Tangible assets (a) $1,135,932 $1,119,502 $1,093,602 $1,092,733 $1,075,781 Total shareholders' equity $101,892 $101,231 $98,624 $98,491 $93,836 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 12 30 49 67 97 Tangible common equity (b) $94,445 $93,766 $91,140 $90,989 $86,304 Average shareholders' equity $101,323 $99,734 $98,618 $96,000 $92,682 $100,533 $92,164 Less: Average goodwill 7,435 7,435 7,435 7,435 7,435 7,435 7,435 Less: Average core deposit intangible 21 39 58 80 115 30 133 Average tangible shareholders' equity (c) $93,867 $92,260 $91,125 $88,485 $85,132 $93,068 $84,596 Net income (d) $155 $1,772 $1,714 $2,222 $2,127 $1,927 $4,234 Common shares outstanding (in thousands) (e) 5,755 5,739 5,696 5,715 5,744 TANGIBLE MEASURES Tangible book value per common share (b)/(e) $16.41 $16.34 $16.00 $15.92 $15.03 Tangible common equity to tangible assets (b)/(a) 8.31 % 8.38 % 8.33 % 8.33 % 8.02 % Return on average tangible common equity (annualized) (1) 0.66 % 7.79 % 7.49 % 9.99 % 10.05 % 4.17 % 10.06 % (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 Second Quarter 2025 Results

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