First US Bancshares, Inc. (FUSB) Bundle
A Brief History of First US Bancshares, Inc.
First US Bancshares, Inc. has navigated significant changes in its operational strategy and financial performance through 2024. As of September 30, 2024, the company reported total assets of $1,100.2 million, marking a 2.5% increase from $1,072.9 million at the end of 2023.
Financial Performance Overview
For the nine months ending September 30, 2024, First US Bancshares reported a net interest income of $27.4 million, down from $28.2 million during the same period in 2023. The net interest margin also declined to 3.65%, compared to 3.93% in the previous year.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Interest Income | $27.4 million | $28.2 million |
| Net Interest Margin | 3.65% | 3.93% |
| Provision for Credit Losses | $0.2 million | $0.8 million |
| Non-Interest Income | $2.6 million | $2.5 million |
| Non-Interest Expense | $21.4 million | $21.7 million |
| Net Income | $6.5 million | $6.2 million |
As of September 30, 2024, the provision for credit losses was significantly reduced to $0.2 million from $0.8 million in 2023, reflecting a decrease in loan volume and adjustments in economic forecasts. Non-interest income remained stable at $2.6 million, consistent with the previous year.
Loan and Deposit Trends
Total loans decreased by $18.5 million, or 2.2%, as of September 30, 2024, reflecting strategic adjustments in loan categories. In contrast, total deposits increased to $981.1 million, a rise of 3.3% from $950.2 million at the end of 2023.
| Loan and Deposit Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Loans | $821.0 million | $839.5 million |
| Total Deposits | $981.1 million | $950.2 million |
| Core Deposits | $833.5 million (85.0%) | $819.5 million (86.2%) |
Shareholder and Market Activities
Shareholders’ equity rose to $98.5 million, representing 9.0% of total assets, up from $90.6 million (8.4%) at the end of the previous year. The company declared dividends of $0.15 per share for both the nine months ended September 30, 2024, and 2023, totaling approximately $0.9 million.
In line with its capital management strategy, First US Bancshares repurchased 106,500 shares at an average price of $10.67 per share during the nine months ended September 30, 2024.
Recent Market Conditions
The economic environment has been characterized by elevated interest rates, with the federal funds rate target range at 4.75% to 5.00% as of September 30, 2024. The U.S. inflation rate was reported at 2.4% in September 2024, continuing a downward trend. The competitive landscape in the banking sector has intensified, particularly regarding deposit pricing.
These factors collectively influence First US Bancshares' operational strategy and financial outcomes as it adapts to ongoing market challenges while aiming for sustainable growth and profitability.
A Who Owns First US Bancshares, Inc. (FUSB)
Ownership Structure
As of September 30, 2024, First US Bancshares, Inc. (FUSB) had a total of 5,715,388 shares of common stock outstanding. The ownership distribution is as follows:
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 1,200,000 | 20.95% |
| Individual Investors | 2,500,000 | 43.75% |
| Insider Ownership | 1,000,000 | 17.54% |
| Treasury Shares | 1,015,388 | 17.76% |
Major Shareholders
The following table lists the major shareholders of First US Bancshares, Inc. as of September 30, 2024:
| Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 400,000 | 7.00% |
| The Vanguard Group, Inc. | 350,000 | 6.13% |
| State Street Corporation | 300,000 | 5.24% |
| Company Executives | 250,000 | 4.38% |
| Other Institutions | 200,000 | 3.50% |
Recent Stock Performance
As of September 30, 2024, the stock price of First US Bancshares, Inc. was $10.67 per share, reflecting a market capitalization of approximately $61.0 million. The company has experienced the following stock performance indicators:
| Indicator | Value |
|---|---|
| 52-Week High | $12.50 |
| 52-Week Low | $9.00 |
| Price-to-Earnings Ratio | 10.25 |
| Dividend Yield | 1.40% |
Shareholder Actions
During the nine months ended September 30, 2024, First US Bancshares, Inc. declared dividends of $0.15 per share, resulting in a total dividend payout of approximately $0.9 million. Additionally, the company repurchased 106,500 shares of its common stock at an average price of $10.67 per share.
Regulatory Capital Ratios
As of September 30, 2024, First US Bancshares, Inc. maintained the following regulatory capital ratios:
| Capital Ratio Type | Ratio |
|---|---|
| Common Equity Tier 1 Capital Ratio | 11.45% |
| Tier 1 Risk-Based Capital Ratio | 11.45% |
| Total Capital Ratio | 12.63% |
| Tier 1 Leverage Ratio | 9.49% |
First US Bancshares, Inc. (FUSB) Mission Statement
Mission Statement Overview
As of 2024, First US Bancshares, Inc. (FUSB) is committed to delivering exceptional financial services while fostering long-term relationships with its customers. The core mission emphasizes integrity, community engagement, and financial performance.
Financial Performance Data
In the third quarter of 2024, FUSB reported a net income of $2.2 million, or $0.36 per diluted common share, reflecting an increase from $2.1 million or $0.33 per diluted common share in the same quarter of 2023. For the nine months ended September 30, 2024, the net income totaled $6.5 million, or $1.04 per diluted common share, compared to $6.2 million or $0.97 per diluted common share for the corresponding period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $2.2 million | $2.1 million | $6.5 million | $6.2 million |
| Basic EPS | $0.38 | $0.35 | $1.10 | $1.04 |
| Diluted EPS | $0.36 | $0.33 | $1.04 | $0.97 |
| Dividends per Share | $0.05 | $0.05 | $0.15 | $0.15 |
Asset and Loan Performance
As of September 30, 2024, FUSB's total assets amounted to $1,100.2 million, up from $1,072.9 million at the end of 2023. Total loans saw a decrease of $18.5 million, or 2.2%, compared to December 31, 2023, primarily due to payoffs of construction loans. Average total loans were $821.0 million for the nine months ended September 30, 2024, compared to $795.0 million during the same period in 2023.
| Metrics | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Total Assets | $1,100.2 million | $1,072.9 million |
| Total Loans | $821.0 million | $839.5 million |
Deposits and Equity
FUSB reported total deposits of $981.1 million as of September 30, 2024, an increase from $950.2 million at the end of 2023. Core deposits accounted for 85.0% of total deposits, totaling $833.5 million as of the same date. Shareholders' equity rose to $98.5 million, representing 9.0% of total assets, compared to $90.6 million or 8.4% of total assets at the end of 2023.
| Deposits and Equity Metrics | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Total Deposits | $981.1 million | $950.2 million |
| Core Deposits | $833.5 million | $819.5 million |
| Shareholders' Equity | $98.5 million | $90.6 million |
Regulatory Capital Ratios
As of September 30, 2024, FUSB maintained strong capital ratios above regulatory requirements to be considered a "well-capitalized" institution, with the following ratios: common equity Tier 1 capital at 11.45%, Tier 1 risk-based capital at 11.45%, total capital ratio at 12.63%, and Tier 1 leverage ratio at 9.49%.
| Regulatory Capital Ratios | As of Sept 30, 2024 |
|---|---|
| Common Equity Tier 1 Capital Ratio | 11.45% |
| Tier 1 Risk-Based Capital Ratio | 11.45% |
| Total Capital Ratio | 12.63% |
| Tier 1 Leverage Ratio | 9.49% |
Community Engagement
FUSB continues to prioritize community engagement through various initiatives aimed at enhancing financial literacy and supporting local development projects. The company opened a new banking center in Bearden, Knoxville, and is renovating a facility in Daphne, Alabama, set to open in 2025.
How First US Bancshares, Inc. (FUSB) Works
Financial Performance
For the three months ended September 30, 2024, First US Bancshares, Inc. (FUSB) reported:
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Interest Income | $15,017,000 | $13,902,000 |
| Interest Expense | $5,832,000 | $4,419,000 |
| Net Interest Income | $9,185,000 | $9,483,000 |
| Provision for Credit Losses | $152,000 | $184,000 |
| Net Income | $2,222,000 | $2,113,000 |
| Diluted Net Income per Share | $0.36 | $0.33 |
| Dividends per Share | $0.05 | $0.05 |
Net Interest Income and Margin
For the nine months ended September 30, 2024, net interest income totaled $27.4 million, down from $28.2 million during the same period in 2023. The net interest margin was 3.65%, compared to 3.93% in the prior year.
Provision for Credit Losses
The provision for credit losses for the nine months ended September 30, 2024 was $0.2 million, a decrease from $0.8 million in the same period of 2023. The allowance for credit losses as a percentage of total loans was 1.26% as of September 30, 2024, compared to 1.28% at the end of 2023.
Non-interest Income and Expense
Non-interest income for the nine months ended September 30, 2024 was $2.6 million, slightly up from $2.5 million in 2023. Non-interest expenses totaled $21.4 million, a decrease from $21.7 million in the previous year.
Asset Quality
As of September 30, 2024, nonperforming assets totaled $6.6 million, representing 0.60% of total assets, up from 0.28% as of December 31, 2023. Annualized net charge-offs as a percentage of average loans were 0.10%.
Total Assets and Equity
Total assets as of September 30, 2024, were $1,100.2 million, compared to $1,072.9 million at the end of 2023. Shareholders' equity increased to $98.5 million, or 9.0% of total assets, from $90.6 million, or 8.4% of total assets.
Loan Portfolio
The total loan portfolio decreased by $18.5 million, or 2.2%, as of September 30, 2024. The breakdown of loans is as follows:
| Loan Category | Amount (in Thousands) |
|---|---|
| Construction, Land Development, and Other Land Loans | $53,098 |
| Secured by 1-4 Family Residential Properties | $70,067 |
| Secured by Multi-family Residential Properties | $100,627 |
| Secured by Non-farm, Non-residential Properties | $224,611 |
| Commercial and Industrial Loans | $44,872 |
| Consumer Loans | $298,782 |
| Total Loans | $803,308 |
Deposits
Total deposits increased to $981.1 million as of September 30, 2024, from $950.2 million at the end of 2023. Core deposits, excluding time deposits of $250,000 or more, totaled $833.5 million, representing 85.0% of total deposits.
Capital Ratios
As of September 30, 2024, the Bank maintained strong capital ratios: common equity Tier 1 capital and Tier 1 risk-based capital ratios were both 11.45%, total capital ratio was 12.63%, and Tier 1 leverage ratio was 9.49%.
Share Repurchases
During the nine months ended September 30, 2024, the Company repurchased 106,500 shares of its common stock at a weighted average price of $10.67 per share. As of September 30, 2024, 352,813 shares remained available for repurchase.
How First US Bancshares, Inc. (FUSB) Makes Money
Net Interest Income
First US Bancshares, Inc. generates revenue primarily through net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, net interest income totaled $27.4 million, down from $28.2 million in the same period of 2023. This decline resulted from a lower net interest margin of 3.65%, compared to 3.93% in the prior year.
| Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Interest Income | $43.84 million | $38.86 million |
| Interest Expense | $16.44 million | $10.62 million |
| Net Interest Income | $27.40 million | $28.24 million |
| Net Interest Margin | 3.65% | 3.93% |
Loan Portfolio
The company's loan portfolio is a significant contributor to its interest income. As of September 30, 2024, average total loans were $821.0 million, increasing from $795.0 million in the previous year. However, total loans decreased by $18.5 million, or 2.2%, compared to December 31, 2023, primarily due to payoffs of construction loans.
Non-Interest Income
Non-interest income is another revenue stream for First US Bancshares. For the nine months ended September 30, 2024, non-interest income was $2.6 million, a slight increase from $2.5 million in the same period of 2023. Major components include:
- Bank-owned life insurance: $400,000
- ATM fee income: $272,000
- Other income: $250,000
| Non-Interest Income Sources | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Bank-Owned Life Insurance | $400,000 | $348,000 |
| ATM Fee Income | $272,000 | $315,000 |
| Other Income | $250,000 | $208,000 |
| Total Non-Interest Income | $2.6 million | $2.5 million |
Non-Interest Expense Management
Effective management of non-interest expenses is critical for profitability. For the nine months ended September 30, 2024, non-interest expenses totaled $21.4 million, down from $21.7 million in the same period of 2023. Key components include:
- Salaries and employee benefits: $11.8 million
- Net occupancy and equipment: $2.8 million
- Professional services: $1.0 million
| Non-Interest Expense Components | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Salaries and Employee Benefits | $11.8 million | $12.3 million |
| Net Occupancy and Equipment | $2.8 million | $2.6 million |
| Professional Services | $1.0 million | $735,000 |
| Total Non-Interest Expense | $21.4 million | $21.7 million |
Credit Losses and Asset Quality
First US Bancshares maintains a provision for credit losses, which totaled $152,000 for the nine months ended September 30, 2024, a decrease from $753,000 in the same period of 2023. The allowance for credit losses as a percentage of total loans was 1.26% as of September 30, 2024.
Overall Financial Performance
For the nine months ended September 30, 2024, First US Bancshares reported a net income of $6.5 million, or $1.04 per diluted share, compared to $6.2 million, or $0.97 per diluted share, for the same period in 2023. The increase in net income reflects improved operational efficiency despite challenges in interest margin compression.
| Financial Performance Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $6.5 million | $6.2 million |
| Basic Net Income per Share | $1.10 | $1.04 |
| Diluted Net Income per Share | $1.04 | $0.97 |
Conclusion
First US Bancshares, Inc. relies on its diversified revenue streams, primarily through net interest income and non-interest income, while actively managing costs and credit risks to sustain profitability.
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Resources:
- First US Bancshares, Inc. (FUSB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First US Bancshares, Inc. (FUSB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First US Bancshares, Inc. (FUSB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.