First US Bancshares(US:FUSB)2025-08-07 18:06Financial Performance - The Company reported net income of $0.2 million, or $0.03 per diluted share, for the three months ended June 30, 2025, a decrease from $2.1 million, or $0.34 per diluted share, for the same period in 2024[165]. - 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 same period in 2024[165]. - Non-interest income remained stable at $1.7 million for the six months ended June 30, 2025, compared to the same period in 2024[201]. - Total non-interest expense was $14.4 million for the six months ended June 30, 2025, consistent with the same period in 2024, reflecting the impact of strategic initiatives[202]. - The provision for income taxes was $0.6 million for the six months ended June 30, 2025, compared to $1.3 million for the same period in 2024, with an effective tax rate of 22.6%[203]. Asset and Loan Growth - Total assets increased by 3.8% to $1,143.4 million as of June 30, 2025, compared to $1,101.1 million as of December 31, 2024[173]. - Total loans increased by $48.4 million, or 5.9%, as of June 30, 2025, driven primarily by a $66.4 million growth in consumer indirect loans[174]. - As of June 30, 2025, the total loan portfolio increased by $48.4 million, or 5.9%, compared to December 31, 2024, reaching $871.4 million[212]. - The composition of the non-residential commercial real estate loan portfolio totaled $215.0 million as of June 30, 2025, compared to $227.8 million as of December 31, 2024[212]. Credit Quality - The Company recorded a provision for credit losses of $3.2 million for the six months ended June 30, 2025, compared to no provision in the same period of 2024[170]. - Net charge-offs totaled $2.0 million for the six months ended June 30, 2025, compared to $0.4 million for the same period in 2024[198]. - Nonperforming assets totaled $3.7 million as of June 30, 2025, representing 0.33% of total assets, down from 0.50% as of December 31, 2024[175]. - The Company’s allowance for credit losses (ACL) as a percentage of total loans and leases was 1.31% as of June 30, 2025, up from 1.24% as of December 31, 2024[199]. - Non-accrual loans decreased to $2.447 million as of June 30, 2025, down from $3.668 million in the previous quarter, indicating improved asset quality[217]. Deposits and Liquidity - Total deposits increased by $14.3 million, or 1.5%, during the six months ended June 30, 2025, with core deposits totaling $816.1 million, or 82.7% of total deposits[176]. - Total deposits rose to $986.8 million as of June 30, 2025, reflecting a 1.5% increase from $972.6 million as of December 31, 2024[219]. - Core deposits accounted for 82.7% of total deposits, totaling $816.1 million as of June 30, 2025, down from 86.1% and $837.7 million at the end of 2024[219]. - Total readily available liquidity was $384.0 million as of June 30, 2025, down from $397.7 million as of December 31, 2024[234]. - The Company has access to $181.9 million in borrowing capacity with the FRB's discount window as of June 30, 2025, up from $165.1 million as of December 31, 2024[230]. Capital and Shareholder Returns - Shareholders' equity increased by $3.3 million, or 3.3%, as of June 30, 2025, primarily due to earnings net of dividends and share repurchases[179]. - The Company declared cash dividends of $0.14 per share during the six months ended June 30, 2025, up from $0.10 per share in the same period of 2024[180]. - The Company repurchased 40,000 shares at an average price of $13.38 per share, with 872,813 shares remaining available for repurchase as of June 30, 2025[181]. - Shareholders' equity increased to $101.9 million, or 8.9% of total assets, as of June 30, 2025, compared to $98.6 million, or 9.0% of total assets, at the end of 2024[223]. Interest Income and Expense - Net interest income increased by $0.2 million, or 0.9%, for the six months ended June 30, 2025, with a net interest margin of 3.56%, down from 3.67% in the same period of 2024[169]. - For the six months ended June 30, 2025, net interest income was $18.373 million, compared to $18.216 million for the same period in 2024[190]. - Total interest income increased by $49 thousand for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a $1.0 million growth in average earning-asset balances[196]. - Interest expense decreased by $0.1 million for the six months ended June 30, 2025, compared to the same period in 2024, driven by a decrease in average rates paid on deposits[195]. - The net interest margin for the six months ended June 30, 2025, was 3.56%, slightly down from 3.67% in the prior year[190]. Future Developments - The Company is renovating a banking center in Daphne, Alabama, expected to open in the first half of 2026, and has purchased land in Mobile, Alabama for future development[184]. - The Company forecasts a cumulative change in net interest income of $470,000 in one year under a +1% interest rate scenario[241]. - Management believes the Company has adequate sources of liquidity to cover its contractual obligations over the next twelve months[238].