Financial Performance - Interest income for 2023 increased to $52,806,000 from $41,197,000 in 2022, representing a growth of 28.5%[152]. - Net interest income remained stable at $37,350,000 in 2023 compared to $36,941,000 in 2022, showing a slight increase of 1.1%[152]. - Net income rose to $8,485,000 in 2023, up from $6,864,000 in 2022, reflecting a growth of 23.6%[152]. - Basic net income per share increased to $1.42 in 2023 from $1.13 in 2022, a rise of 25.7%[152]. - Total assets grew to $1,072,940,000 in 2023, compared to $994,667,000 in 2022, marking an increase of 7.9%[152]. - Total loans increased to $821,791,000 in 2023 from $773,873,000 in 2022, a growth of 6.2%[152]. - Total deposits rose to $950,191,000 in 2023, up from $870,025,000 in 2022, indicating a growth of 9.2%[152]. - The allowance for credit losses on loans increased to $10,507,000 in 2023 from $9,422,000 in 2022, reflecting a rise of 11.5%[152]. - The net interest margin decreased to 3.87% in 2023 from 4.07% in 2022, a decline of 4.9%[152]. - Non-interest income slightly decreased to $3.4 million in 2023 from $3.5 million in 2022, primarily due to the absence of gains on the sale of premises and equipment[186]. - Non-interest expense rose to $29.1 million in 2023 from $28.1 million in 2022, with increases attributed to regulatory assessments and check fraud[187]. Regulatory Environment - Bancshares is subject to extensive regulation by the Federal Reserve, ASBD, and FDIC, impacting its operations and profitability[29]. - The Federal Reserve requires bank holding companies to serve as a source of financial strength to their subsidiary depository institutions[32]. - The Dodd-Frank Act imposes restrictions on incentive compensation arrangements to mitigate inappropriate risks within financial institutions[37]. - The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 allows community banks with total assets of less than $10 billion to access a simpler capital regime focused on Tier 1 leverage capital levels[51]. - The proposed revisions to the Basel III Capital Rules introduced in July 2023 would not apply to the Company or the Bank due to their total consolidated assets being less than $100 billion[54]. - The Bank must maintain a specified capital conservation buffer to avoid limitations on paying dividends and engaging in share repurchases[48]. - The Anti-Money Laundering Act of 2020 aims to modernize U.S. bank secrecy and anti-money laundering laws, requiring financial institutions to establish comprehensive programs[60]. - The SEC adopted amendments in July 2023 requiring public companies to enhance disclosures regarding cybersecurity risk management and incident reporting[68]. - The Consumer Financial Protection Bureau proposed a rule on October 19, 2023, promoting "open banking" which would require financial institutions to provide consumers with access to their transaction and account information[71]. - The federal banking regulators are expected to adopt a formal climate risk management framework for larger banking organizations in the coming months, focusing on the impact of climate-related risks on financial stability[76]. Operational Highlights - The Bank operates 15 full-service banking offices across Alabama, Tennessee, and Virginia, and conducts indirect lending in 17 states[17]. - Bancshares aims to grow loan production offices to support limited branching and expand its customer base through digital banking offerings[20]. - As of December 31, 2023, the Bank had 153 full-time equivalent employees, with 79% of the workforce being female and 19% racially or ethnically diverse[21][26]. - The Company emphasizes a competitive total rewards program, including bonus opportunities and a Company matched 401(k) Plan, to attract and retain talent[23]. - The Bank received a "satisfactory" rating in its most recent Community Reinvestment Act evaluation[57]. Market and Economic Conditions - The financial services industry is expected to become more competitive due to technological advances, which may diminish the importance of traditional depository institutions[28]. - Economic conditions in the U.S. and local markets, characterized by high inflation and interest rates, could adversely affect growth and profitability[84]. - The banking industry is highly competitive, with significant competition from various financial institutions, which may affect market share[87]. - Changes in interest rates can significantly impact net interest income and the valuation of assets and liabilities[88]. - Federal budget deficit concerns and potential political conflicts may negatively impact financial markets and the company's financial position[91]. Cybersecurity and Compliance - The company relies on third-party vendors for processing and handling records, exposing it to additional risks for cybersecurity breaches[97]. - The company is subject to extensive governmental regulation, which could adversely impact operations and financial results if compliance is not maintained[100]. - The company faces risks related to privacy and data protection laws, which could lead to increased costs and potential litigation if violations occur[101]. - The company must notify the Federal Reserve or FDIC within 36 hours of significant computer security incidents that disrupt its operations[67]. - The company has implemented several cybersecurity processes and controls to manage risks associated with cybersecurity threats[125]. - The Information Technology Steering Committee of the Board of Directors oversees the company's cybersecurity risk management process, meeting at least quarterly[135]. - Bancshares' management team has over 90 years of collective experience in managing information security and developing cybersecurity strategies[137]. Shareholder Returns and Capital Management - Bancshares declared total dividends of $0.20 per common share for the year ended December 31, 2023, compared to $0.14 per common share in 2022[144]. - During the fourth quarter of 2023, Bancshares repurchased a total of 138,729 shares at an average price of $10.33 per share[146]. - As of December 31, 2023, Bancshares was authorized to repurchase up to 459,313 shares under its share repurchase program[147]. - The Company intends to engage in acquisitions, which may not yield anticipated revenue or cost savings and could result in integration difficulties[110]. - Regulatory restrictions may limit the ability of the company to pay dividends, impacting shareholder returns[116]. - The Company declared cash dividends of $0.20 per share in 2023, up from $0.14 per share in 2022[194]. - The Company completed share repurchases totaling 137,500 shares at a weighted average price of $10.34 per share during 2023[195].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 0-14549 First US Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 63-0843362 ( ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited interim condensed consolidated financial statements reflect the company's financial position as of June 30, 2023, and its performance for the three and six months then ended, highlighting asset growth, increased net income, and the adoption of the CECL accounting standard [Interim Condensed Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) Interim Condensed Consolidated Balance Sheets Summary (in thousands) | Metric | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | $1,068,126 | $994,667 | | Net Loans and Leases | $802,958 | $764,451 | | Total Deposits | $932,628 | $870,025 | | **Total Liabilities** | $982,401 | $909,532 | | **Total Shareholders' Equity** | $85,725 | $85,135 | - Total assets grew by **7.4%** from **$994.7 million** at the end of 2022 to **$1.07 billion** as of June 30, 2023, primarily driven by a **5.0%** increase in net loans and a **7.2%** increase in total deposits[12](index=12&type=chunk) [Interim Condensed Consolidated Statements of Operations](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Operations) Interim Condensed Consolidated Statements of Operations Summary (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Interest Income | $18,757 | $17,535 | | Provision for Credit Losses | $569 | $1,616 | | **Net Income** | **$4,095** | **$2,776** | | **Diluted EPS** | **$0.64** | **$0.42** | - Net income for the first six months of 2023 increased by **47.5%** year-over-year, driven by a **7.0%** increase in net interest income and a significant **64.8%** decrease in the provision for credit losses[14](index=14&type=chunk) [Notes to Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) - On January 1, 2023, the Company adopted the CECL accounting standard (ASC 326), resulting in a **$2.4 million** increase in the allowance for credit losses (including loans and unfunded commitments) and a **$1.8 million** after-tax decrease to retained earnings[29](index=29&type=chunk)[52](index=52&type=chunk) - As of June 30, 2023, the loan portfolio was concentrated in real estate, comprising **53.4%** of total loans. The total loan portfolio grew to **$814.5 million** from **$773.9 million** at year-end 2022[70](index=70&type=chunk) - In February 2023, the Company terminated four interest rate swap agreements with an aggregate notional amount of **$40.0 million**, resulting in unrealized gains that will be reclassified to interest income and expense over the original terms of the contracts[123](index=123&type=chunk) - The Bank segment generated **$4.5 million** in net income for the first six months of 2023, while the ALC segment, which ceased new business in 2021, contributed **$0.3 million**[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's discussion highlights a significant increase in six-month net income driven by strategic initiatives, improved asset quality, and balance sheet expansion, alongside proactive measures to enhance liquidity in response to industry-wide concerns [Executive Overview](index=53&type=section&id=Executive%20Overview) - A key strategic initiative has been the cessation of new business at the ALC subsidiary since Q3 2021. This has led to a significant improvement in asset quality, with ALC's loan portfolio decreasing from **$20.2 million** at year-end 2022 to **$14.2 million** as of June 30, 2023[179](index=179&type=chunk)[180](index=180&type=chunk) - The company's overall asset quality has substantially improved, with nonperforming assets as a percentage of total assets decreasing to **0.15%** at June 30, 2023, from **0.24%** at December 31, 2022. Net charge-offs as a percentage of average loans fell to **0.14%** for the first six months of 2023 from **0.34%** in the prior year period[181](index=181&type=chunk) Key Financial Performance Metrics (in millions) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Income | $4.1 | $2.8 | | Diluted EPS | $0.64 | $0.42 | [Results of Operations](index=57&type=section&id=Results%20of%20Operations) - Net interest income for the first six months of 2023 increased by **$1.2 million** (**7.0%**) year-over-year, driven by loan growth and higher asset yields. However, this was partially offset by a **$4.8 million** increase in interest expense due to rising funding costs[185](index=185&type=chunk)[186](index=186&type=chunk) - The provision for credit losses decreased significantly to **$0.6 million** for the first half of 2023 from **$1.6 million** in the same period of 2022, primarily due to reduced charge-offs from the shrinking ALC loan portfolio[187](index=187&type=chunk)[209](index=209&type=chunk) - Non-interest expense increased by **3.5%** year-over-year for the six-month period, mainly because nonrecurring gains on property sales in 2022 were not repeated in 2023. This increase was partly offset by a **2.3%** reduction in salaries and benefits expense[215](index=215&type=chunk) [Balance Sheet Analysis](index=63&type=section&id=Balance%20Sheet%20Analysis) - Total loans grew by **$40.6 million** (**5.2%**) in the first half of 2023, driven by construction, indirect consumer, and commercial real estate lending[223](index=223&type=chunk) - The allowance for credit losses as a percentage of total loans increased to **1.42%** as of June 30, 2023, from **1.22%** at December 31, 2022, largely due to the adoption of the CECL accounting standard[211](index=211&type=chunk)[224](index=224&type=chunk) - Total deposits increased by **7.2%** to **$932.6 million**. Core deposits, which exclude large time deposits and brokered deposits, represented **84.2%** of total deposits, down from **89.4%** at year-end 2022, reflecting a strategic use of brokered deposits for liquidity[228](index=228&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) - In response to Q1 2023 banking industry turmoil, management enhanced the company's liquidity position by increasing on-balance sheet cash and utilizing wholesale deposits. Estimated uninsured deposits were **17.3%** of total deposits as of June 30, 2023[241](index=241&type=chunk) Liquidity Sources (in millions) | Liquidity Source | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and federal funds sold | $75.4 | $31.9 | | Unused FHLB credit (subject to collateral) | $248.0 | $246.8 | | Unused federal funds lines | $28.0 | $45.0 | - The Bank maintained capital ratios well above the 'well-capitalized' regulatory requirements as of June 30, 2023, with a Tier 1 leverage ratio of **9.19%** and a total capital ratio of **12.21%**[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages interest rate risk through financial simulation models, which indicate that net interest margin is most sensitive to falling interest rates, with a projected decline in a negative rate shock scenario Projected Impact of Interest Rate Changes on Net Interest Margin and Income | Interest Rate Scenario | 1-Year Change in Net Interest Margin (bps) | 1-Year Change in Net Interest Income (in millions) | | :--- | :--- | :--- | | +3% | (8) | $(0.8) | | +2% | 5 | $0.5 | | +1% | 5 | $0.5 | | -1% | (8) | $(0.9) | | -2% | (20) | $(2.2) | | -3% | (33) | $(3.6) | [Controls and Procedures](index=70&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded that they were effective at a reasonable assurance level as of June 30, 2023 - Based on an evaluation as of June 30, 2023, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[250](index=250&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, these controls[251](index=251&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=71&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course litigation and, based on consultation with legal counsel, does not expect the outcomes to have a material adverse effect on its financial condition or results of operations - The Company is party to ordinary course litigation but does not believe the outcomes will have a material adverse effect on its financial statements[253](index=253&type=chunk) [Risk Factors](index=71&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company notes no material changes to its previously disclosed risk factors, except for adding a new risk concerning adverse developments in the financial services industry - A new risk factor was added regarding adverse developments in the financial services industry, citing the potential for market-wide liquidity issues, increased regulatory scrutiny, and higher costs following the bank failures in March and April 2023[255](index=255&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the second quarter of 2023, no shares were repurchased under the company's publicly announced share repurchase program, though some shares were purchased for the 401(k) Plan - No shares were repurchased under the company's publicly announced share repurchase program during the second quarter of 2023[257](index=257&type=chunk) - As of June 30, 2023, the company had authorization to repurchase up to **596,813** additional shares of common stock under its program, which extends through December 31, 2023[257](index=257&type=chunk) [Exhibits](index=72&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, the 2023 Incentive Plan, CEO/CFO certifications, and financial statements formatted in Inline XBRL

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited interim condensed consolidated financial statements for First US Bancshares, Inc. as of March 31, 2023, reflect the company's financial position, results of operations, and cash flows, highlighting the adoption of CECL and increased net income [Interim Condensed Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.027 billion** from **$994.7 million**, driven by higher cash, while deposits grew and shareholders' equity slightly decreased Consolidated Balance Sheet Highlights (Unaudited) | (In Thousands) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,026,658** | **$994,667** | | Total cash and cash equivalents | $68,427 | $30,152 | | Net loans and leases held for investment | $764,290 | $764,451 | | **Total Liabilities** | **$941,901** | **$909,532** | | Total deposits | $897,885 | $870,025 | | Short-term borrowings | $25,000 | $20,038 | | **Total Shareholders' Equity** | **$84,757** | **$85,135** | [Interim Condensed Consolidated Statements of Operations](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Operations) Net income for Q1 2023 increased **52%** to **$2.1 million**, driven by higher net interest income and a lower provision for credit losses, leading to increased diluted EPS Statement of Operations Summary (Unaudited) | (In Thousands, Except Per Share Data) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Interest Income | $9,434 | $8,709 | | Provision for credit losses | $269 | $721 | | Non-interest Income | $829 | $829 | | Non-interest Expense | $7,270 | $7,056 | | **Net Income** | **$2,072** | **$1,361** | | **Diluted Net Income Per Share** | **$0.33** | **$0.20** | | Dividends per share | $0.05 | $0.03 | [Interim Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income for Q1 2023 was **$1.6 million**, a significant improvement from a **$1.2 million loss** in Q1 2022, primarily due to a smaller other comprehensive loss Comprehensive Income (Loss) Summary (Unaudited) | (In Thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Income | $2,072 | $1,361 | | Other Comprehensive Loss | $(473) | $(2,590) | | **Total Comprehensive Income (Loss)** | **$1,599** | **$(1,229)** | [Interim Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity slightly decreased to **$84.8 million** due to a **$1.8 million** CECL adjustment and other comprehensive loss, partially offset by **$2.1 million** in net income - The adoption of the Current Expected Credit Loss (CECL) accounting model resulted in a cumulative-effect adjustment that decreased retained earnings by **$1.8 million**, net of tax[18](index=18&type=chunk) - Net income of **$2.1 million** partially offset the decrease in equity, along with a **$0.1 million** impact from stock-based compensation plans[18](index=18&type=chunk) [Interim Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$38.3 million** in Q1 2023, primarily driven by **$32.5 million** from financing activities, including higher deposits and short-term borrowings Cash Flow Summary (Unaudited) | (In Thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,585 | $846 | | Net cash provided by investing activities | $2,187 | $21,867 | | Net cash provided by financing activities | $32,503 | $13,882 | | **Net increase in cash and cash equivalents** | **$38,275** | **$36,595** | | Cash and cash equivalents, end of period | $68,427 | $97,839 | [Notes to Interim Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail significant accounting policies, including the adoption of CECL, which increased the allowance for credit losses, and provide breakdowns of the investment and loan portfolios, borrowings, and segment performance - On January 1, 2023, the Company adopted ASC 326 (CECL), replacing the "incurred loss" model with an "expected loss" model. This resulted in a **$2.4 million** increase in the allowance for credit losses (including loans and unfunded commitments) and a **$1.8 million** after-tax decrease to retained earnings[26](index=26&type=chunk)[27](index=27&type=chunk) - As of March 31, 2023, the investment portfolio had gross unrealized losses of **$11.5 million** in available-for-sale securities, primarily attributed to the interest rate environment, not credit issues[52](index=52&type=chunk)[58](index=58&type=chunk) - During Q1 2023, the Company terminated its remaining four interest rate swap agreements (two cash flow hedges, two fair value hedges) with a total notional amount of **$40.0 million**, resulting in unrealized gains that will be recognized over the original terms of the contracts[123](index=123&type=chunk)[124](index=124&type=chunk) - The company operates two reportable segments: the Bank and Acceptance Loan Company, Inc. (ALC). ALC ceased new business development in Q3 2021 and is servicing its remaining loan portfolio[22](index=22&type=chunk)[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=49&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A highlights a strong Q1 2023 with net income rising to **$2.1 million** due to increased net interest income and lower credit loss provision, improved asset quality from ALC wind-down, and enhanced liquidity [Executive Overview](index=51&type=section&id=Executive%20Overview) Net income for Q1 2023 increased to **$2.1 million** ($0.33 diluted EPS) from **$1.4 million**, driven by higher net interest income, lower credit loss provision, and improved asset quality from the ALC wind-down Financial Highlights Q1 2023 vs Q1 2022 | (In Thousands, Except Per Share Data) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Interest Income | $9,434 | $8,709 | | Provision for credit losses | $269 | $721 | | **Net Income** | **$2,072** | **$1,361** | | **Diluted Net Income Per Share** | **$0.33** | **$0.20** | - The strategic cessation of new business at the ALC subsidiary has led to improved asset quality. Net charge-offs from ALC loans fell to **$0.1 million** in Q1 2023 from **$0.5 million** in Q1 2022[179](index=179&type=chunk)[180](index=180&type=chunk) - The company adopted the CECL accounting standard on January 1, 2023, which increased the allowance for credit losses by **$2.1 million** and established a **$0.3 million** reserve for unfunded commitments[188](index=188&type=chunk) - To enhance liquidity amid banking sector turmoil, the company acquired **$35.0 million** in brokered deposits, increasing cash and cash equivalents by **$38.3 million** during the quarter[193](index=193&type=chunk)[194](index=194&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) Net interest income for Q1 2023 increased to **$9.4 million**, expanding net interest margin to **4.13%**, while provision for credit losses decreased due to lower charge-offs, despite a rise in non-interest expense Net Interest Margin Analysis | For the Three Months Ended | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Average Interest-Earning Assets | $926,521 | $888,591 | | Net Interest Income | $9,434 | $8,709 | | **Net Interest Margin** | **4.13%** | **3.97%** | - The provision for credit losses decreased from **$0.7 million** in Q1 2022 to **$0.3 million** in Q1 2023, driven by a reduction in net charge-offs from **$0.6 million** to **$0.2 million**[187](index=187&type=chunk)[207](index=207&type=chunk) - Non-interest expense increased by **3.0%** YoY, primarily due to non-recurring gains on property sales in 2022 that were not repeated in 2023. This was partially offset by a **2.5%** decrease in salaries and employee benefits[212](index=212&type=chunk)[213](index=213&type=chunk) [Balance Sheet Analysis](index=60&type=section&id=Balance%20Sheet%20Analysis) Total loans remained stable at **$775.9 million**, while the allowance for credit losses increased to **1.49%** due to CECL adoption, nonperforming assets decreased, and total deposits grew, though core deposits declined Allowance for Credit Losses (ACL) Trend | As of | ACL ($ in Thousands) | ACL as % of Loans | | :--- | :--- | :--- | | March 31, 2023 | $11,599 | 1.49% | | December 31, 2022 | $9,422 | 1.22% | - Nonperforming assets decreased to **$1.8 million**, or **0.18%** of total assets, at March 31, 2023, compared to **$2.3 million**, or **0.24%** of total assets, at December 31, 2022[224](index=224&type=chunk) - Core deposits (excluding time deposits >$250k and brokered deposits) decreased to **$761.7 million** (**84.8%** of total deposits) from **$778.1 million** (**89.4%** of total deposits) at year-end 2022[226](index=226&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$181.8 million** in readily available liquidity, proactively enhanced in response to banking turmoil, and remains **well-capitalized** with robust regulatory capital ratios - The Bank's regulatory capital ratios as of March 31, 2023, remained well above the levels required to be considered "well-capitalized," with a Tier 1 leverage ratio of **9.36%** and a total capital ratio of **12.41%**[196](index=196&type=chunk) - In response to Q1 2023 liquidity events in the banking sector, the company enhanced its on-balance sheet liquidity, reviewed collateral pledging capacity, and introduced promotional deposit rates[237](index=237&type=chunk)[238](index=238&type=chunk)[240](index=240&type=chunk) Readily Available Liquidity | (In Thousands) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Liquidity from cash and federal funds sold | $68,690 | $31,920 | | Liquidity from pledgeable investment securities | $65,872 | $70,107 | | Liquidity from unused lendable collateral (loans) at FHLB | $19,228 | $18,215 | | Unsecured lines of credit with banks | $28,000 | $45,000 | | **Total readily available liquidity** | **$181,790** | **$165,242** | [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages interest rate risk using financial simulation models, showing asset sensitivity to small rate increases but negative impacts from larger increases or any decreases on net interest income Cumulative Change in Net Interest Income from Level Rate Forecast (pre-tax) | Rate Scenario | 1 Year ($ in thousands) | 2 Years ($ in thousands) | | :--- | :--- | :--- | | +3% | $(1,112) | $(1,530) | | +2% | $250 | $1,013 | | +1% | $459 | $1,154 | | -1% | $(946) | $(2,135) | | -2% | $(2,419) | $(5,542) | | -3% | $(4,097) | $(9,171) | - The company uses financial simulation models as its primary tool to measure interest rate exposure, running various scenarios to understand the potential impact on net interest income[246](index=246&type=chunk) [Controls and Procedures](index=57&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[250](index=250&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended March 31, 2023[251](index=251&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course litigation, which management believes will not have a material adverse effect on its financial condition or results of operations - The Company is involved in ordinary course litigation but does not expect it to have a material adverse effect on its financial statements[254](index=254&type=chunk) [Risk Factors](index=58&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company highlights new and updated risk factors, including potential material effects from adverse developments in the financial services industry and the risk of a U.S. government debt ceiling failure - A new risk factor highlights that adverse developments in the financial services industry, such as the recent failures of Silicon Valley Bank and others, could cause market-wide liquidity problems and lead to losses for the Company[256](index=256&type=chunk) - The company identifies the risk that a failure by the U.S. government to increase the debt ceiling could lead to a default on its debts, potentially increasing interest rates and negatively impacting the company's access to debt markets[257](index=257&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q1 2023, **9,004 shares** were purchased by the 401(k) Plan trustee, with no repurchases under the company's program, leaving **596,813 shares** authorized for repurchase - No shares were repurchased under the company's publicly announced share repurchase program in Q1 2023[260](index=260&type=chunk) - An independent trustee for the company's 401(k) Plan purchased **9,004 shares** in open-market transactions during the quarter[259](index=259&type=chunk) - As of March 31, 2023, the company was authorized to repurchase up to **596,813** additional shares under its existing program[260](index=260&type=chunk) [Exhibits](index=60&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, incentive plans, change in control agreements, CEO/CFO certifications, and financial statements in Inline XBRL - The report includes standard exhibits such as the CEO/CFO certifications (31.1, 31.2, 32), corporate bylaws, and financial data in Inline XBRL format (101, 104)[262](index=262&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file number: 000-14549 FIRST US BANCSHARES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 63-0843362 (State or Other Jurisdiction of In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 0-14549 First US Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 63-0843362 ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from _____________ to _____________ Commission File Number: 0-14549 First US Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) WASHINGTON, D.C. 20549 Delaware 63-0843362 (State or Other Jurisdiction of Incorporation or Organization) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-14549 First US Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 63-0843362 (State or Other Jurisdiction of I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 OR Delaware 63-0843362 (State or Other Jurisdiction of Incorporation or Organization) 3291 U.S. Highway 280 Birmingham, Alabama 35243 (Address of Principal Executive Offices) (Zip Code) (205) 582-1200 (Registrant's telephone number, including area code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial position strengthened with total assets reaching **$956.7 million**, while net income for the nine months significantly increased to **$2.74 million** [Interim Condensed Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) Interim Condensed Consolidated Balance Sheets (Thousands of USD) | Balance Sheet Items | Sep 30, 2021 (Unaudited) | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$956,734** | **$890,511** | | Total cash and cash equivalents | $75,260 | $94,415 | | Investment securities available-for-sale | $117,560 | $84,993 | | Loans, net of allowance | $696,972 | $638,374 | | **Total Liabilities** | **$867,137** | **$803,833** | | Total deposits | $846,842 | $782,212 | | **Total Shareholders' Equity** | **$89,597** | **$86,678** | - Total assets increased by **$66.2 million**, or **7.4%**, from December 31, 2020, to September 30, 2021, primarily driven by growth in net loans and investment securities[13](index=13&type=chunk) - Total deposits grew by **$64.6 million**, or **8.3%**, during the first nine months of 2021, providing the primary funding for asset growth[13](index=13&type=chunk) [Interim Condensed Consolidated Statements of Operations](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Operations) Interim Condensed Consolidated Statements of Operations (Thousands of USD) | Income Statement Items (Nine Months Ended Sep 30) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Net interest income | $27,711 | $26,474 | | Provision for loan and lease losses | $1,517 | $2,476 | | Total non-interest income | $2,656 | $4,002 | | Total non-interest expense | $25,342 | $25,822 | | **Net income** | **$2,740** | **$1,662** | | **Diluted net income per share** | **$0.41** | **$0.25** | - Net income for the nine months ended September 30, 2021, increased by **64.9%** year-over-year, driven by a **$1.2 million** increase in net interest income and a **$1.0 million** decrease in the provision for loan and lease losses[16](index=16&type=chunk) - For the third quarter of 2021, net income more than doubled to **$0.837 million** from **$0.411 million** in Q3 2020[16](index=16&type=chunk) [Notes to Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) - In September 2021, the company's subsidiary, Acceptance Loan Company, Inc. (ALC), ceased new business development and closed its 20 branch locations, resulting in pre-tax restructuring charges of approximately **$0.5 million** in Q3 2021[42](index=42&type=chunk)[43](index=43&type=chunk) - As of September 30, 2021, loans in pandemic-related deferment totaled **$0.8 million**, a significant decrease from **$8.1 million** as of December 31, 2020[73](index=73&type=chunk) - The company had 77 Paycheck Protection Program (PPP) loans with an aggregate principal balance of **$3.9 million** remaining outstanding as of September 30, 2021[77](index=77&type=chunk) - Subsequent to the quarter end, on October 1, 2021, the company completed a private placement of **$11.0 million** in subordinated notes maturing in 2031[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses strategic initiatives, including ALC branch closures, which contributed to a **$2.7 million** net income for the nine months and **$956.7 million** in total asset growth, alongside improved asset quality [Executive Overview](index=42&type=section&id=Executive%20Overview) - A key strategic initiative in Q3 2021 was the cessation of new business and closure of all 20 ALC branch locations to reduce expenses, improve asset quality, and focus on commercial and consumer indirect lending[180](index=180&type=chunk) - The company incurred pre-tax charges of approximately **$0.55 million** in Q3 2021 related to the ALC closures, with an additional **$0.5 million** in expenses expected in Q4 2021 and Q1 2022, which are anticipated to be offset by ongoing cost savings[181](index=181&type=chunk) Earnings Highlights (Nine Months Ended Sep 30) | Earnings Highlights (Nine Months Ended Sep 30) | 2021 | 2020 | | :--- | :--- | :--- | | Net Income | $2.7 million | $1.7 million | | Diluted EPS | $0.41 | $0.25 | - Total assets grew to **$956.7 million** at September 30, 2021, from **$890.5 million** at December 31, 2020, driven by loan and deposit growth[195](index=195&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) - Net interest income for the nine months ended Sep 30, 2021, increased by **$1.2 million** YoY, primarily due to a **$1.5 million** reduction in interest expense from repricing deposit liabilities, with average total funding costs decreasing to **0.36%** from **0.68%**[186](index=186&type=chunk)[188](index=188&type=chunk) - Net interest margin decreased to **4.29%** for the first nine months of 2021 from **4.72%** in the prior year period, pressured by the low interest rate environment and a shift in loan portfolio mix[215](index=215&type=chunk) - The provision for loan and lease losses decreased to **$1.5 million** for the nine months of 2021 from **$2.5 million** in 2020, partly due to improved credit quality from reductions in ALC's higher-risk consumer portfolio[190](index=190&type=chunk)[220](index=220&type=chunk) - Non-interest income decreased by **$1.3 million** for the nine months of 2021 compared to 2020, mainly due to lower secondary market mortgage fees (following the division's discontinuance), reduced service charges, and fewer gains on sales of securities and assets[223](index=223&type=chunk) - Non-interest expense decreased by **$0.5 million** for the nine months of 2021, primarily from lower salaries and benefits, partially offset by **$0.5 million** in one-time expenses in Q3 related to ALC branch closures[226](index=226&type=chunk) [Balance Sheet Analysis](index=49&type=section&id=Balance%20Sheet%20Analysis) - Total loans increased by **$58.8 million** in the first nine months of 2021, led by growth in indirect lending (**+$52.6 million**) and real estate lending (**+$16.4 million**)[196](index=196&type=chunk) - Nonperforming assets as a percentage of total assets improved to **0.35%** as of September 30, 2021, from **0.45%** at year-end 2020[200](index=200&type=chunk)[236](index=236&type=chunk) - Total deposits increased by **8.3%** to **$846.8 million** as of September 30, 2021, with core deposits (excluding time deposits >$250k) growing to **93.9%** of total deposits[239](index=239&type=chunk) - Shareholders' equity increased to **$89.6 million** as of September 30, 2021, from **$86.7 million** at year-end 2020, and the company declared a dividend of **$0.09 per share** for the nine-month period[244](index=244&type=chunk)[245](index=245&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company primarily manages interest rate risk using financial simulation models, with a **+100 basis point** parallel rate shock projected to increase net interest income by **$0.476 million** over one year, and a **-100 basis point** shock projected to decrease it by **$0.835 million** Projected Cumulative Change in Net Interest Income (Thousands of USD) | Interest Rate Scenario | Cumulative Change in Net Interest Income (1 Year) | | :--- | :--- | | +2% | +$528 thousand | | +1% | +$476 thousand | | -1% | -$835 thousand | | -2% | -$1,416 thousand | Projected Net Change in Market Value of Equity (Millions of USD) | Interest Rate Scenario | Net Change in Market Value of Equity | | :--- | :--- | | +2% | +$1.5 million | | +1% | +$3.1 million | | -1% | -$15.0 million | | -2% | -$7.7 million | - The company has identified all contracts referencing LIBOR and is preparing for its discontinuance by evaluating alternative reference rates[265](index=265&type=chunk) [Controls and Procedures](index=56&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting - Based on an evaluation as of September 30, 2021, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[267](index=267&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended September 30, 2021, that have materially affected, or are reasonably likely to materially affect, these controls[268](index=268&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course litigation which is not expected to have a material adverse effect on its financial condition or results of operations - The Company is party to certain ordinary course litigation, which is not expected to have a material adverse effect on its consolidated financial statements or results of operations[271](index=271&type=chunk) [Risk Factors](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020[272](index=272&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q3 2021, 2,643 shares were purchased for the 401(k) Plan, with no direct company repurchases, leaving 1,054,961 shares available under the extended program - During Q3 2021, **2,643 shares** were purchased in open-market transactions for the company's 401(k) Plan at an average price of **$10.60 per share**, with no shares purchased as part of the publicly announced repurchase program[273](index=273&type=chunk) - On April 28, 2021, the Board of Directors approved the repurchase of an additional **1,000,000 shares** and extended the share repurchase program to December 31, 2022, with **1,054,961 shares** available for repurchase as of September 30, 2021[273](index=273&type=chunk) [Exhibits](index=58&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - The report includes standard exhibits such as CEO/CFO certifications (Exhibits 31.1, 31.2, 32) and financial data in Inline XBRL format (Exhibits 101, 104)[275](index=275&type=chunk)