First US Bancshares(US:FUSB)2024-07-24 20:20Financial Performance - Net income for 2Q2024 was $2.1 million, or $0.34 per diluted share, unchanged from 1Q2024 and up from $2.0 million, or $0.31 per diluted share in 2Q2023[1]. - Net income for Q2 2024 was $2.1 million, with diluted earnings per share of $0.34, reflecting a year-to-date EPS growth of $0.04 compared to 2023[13]. - Net income for the three months ended June 30, 2024, was $2,127 million, compared to $2,023 million for the same period in 2023, representing an increase of 5.1%[31]. - Basic net income per share for the three months ended June 30, 2024, was $0.36, up from $0.34 in the same period of 2023, reflecting a growth of 5.9%[31]. Interest Income and Expenses - Net interest income for 2Q2024 totaled $9.2 million, an increase from $9.0 million in 1Q2024, but a decrease from $9.3 million in 2Q2023; net interest margin was 3.69% in 2Q2024, down from 3.88% in 2Q2023[5]. - The Company reported a net interest income of $18.22 million for 2Q2024, slightly down from $18.76 million in the previous quarter[28]. - Total interest income for the three months ended June 30, 2024, was $14,546 million, an increase from $12,999 million for the same period in 2023, representing a growth of 11.9%[31]. - Net interest income after provision for credit losses was $9,176 million for the three months ended June 30, 2024, compared to $9,023 million for the same period in 2023, reflecting a slight increase of 1.7%[31]. Non-Interest Income and Expenses - Non-interest income totaled $0.8 million in Q2 2024, consistent with Q2 2023, while total non-interest income for the six months ended June 30, 2024, was $1.7 million, up from $1.6 million in the same period of 2023[18]. - Total non-interest income for the three months ended June 30, 2024, was $835 million, up from $799 million in the same period of 2023, indicating a growth of 4.5%[31]. - Non-interest expense totaled $7.3 million in 2Q2024, compared to $7.1 million in 1Q2024 and $7.2 million in 2Q2023; total non-interest expense for the first six months of 2024 was $14.4 million[8]. - Total non-interest expense increased to $7,272 million for the three months ended June 30, 2024, compared to $7,151 million for the same period in 2023, marking a rise of 1.7%[31]. Loans and Deposits - Total loans decreased by $3.8 million, or 0.5%, in Q2 2024, with a total loan volume of $819.1 million as of June 30, 2024[16]. - Total loans increased to $819.59 million in 2Q2024, up from $792.38 million in 1Q2024, reflecting a growth rate of 3.5%[24]. - Total deposits increased to $948.63 million in 2Q2024, compared to $877.63 million in 1Q2024, representing an increase of 8.1%[28]. - Total deposits increased by $11.2 million, or 1.2%, during 2Q2024, primarily due to growth in non-interest bearing demand and interest-bearing time deposits[45]. Capital and Equity - As of June 30, 2024, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.28%, total capital ratio was 12.47%, and Tier 1 leverage ratio was 9.46%[10]. - Shareholders' equity rose to $93.84 million as of June 30, 2024, compared to $90.59 million at the end of 2023[30]. - Shareholders' equity increased to $93.8 million, or 8.66% of total assets, as of June 30, 2024, up from $90.6 million, or 8.44% of total assets, as of December 31, 2023[47]. - Tangible common equity to tangible assets ratio was 8.02% as of June 30, 2024, compared to 7.97% in the previous quarter, indicating improved capital adequacy[41]. Economic Outlook and Management Commentary - Management remains cautiously optimistic about economic conditions, noting that inflation has slowed but may remain higher than market expectations[15]. - The Company anticipates potential risks related to credit losses and competition in the banking industry, which may affect future performance[22]. - The Board of Directors may adjust the dividend policy based on the Company's financial conditions and other relevant factors[22]. Liquidity and Funding - The Company maintained a strong core deposit base and access to various funding sources, ensuring adequate liquidity for loan growth and operations[49]. - The company reported strong liquidity indicators, with access to unsecured brokered deposits and on-balance sheet liquidity providing confidence in funding obligations during stressed environments[63]. - Liquidity from cash and federal funds sold increased to $63,740 thousand as of June 30, 2024, compared to $59,754 thousand as of December 31, 2023[61]. Share Repurchase and Dividends - The Company repurchased 77,000 shares of common stock at a weighted average price of $10.60 per share during 2Q2024, with 382,313 shares remaining available for repurchase[9]. - The Company declared a cash dividend of $0.05 per share for 2Q2024, consistent with previous quarters[19].