First US Bancshares(US:FUSB)2025-11-06 18:47Financial Performance - The Company reported net income of $1.9 million, or $0.32 per diluted share, for the three months ended September 30, 2025, down from $2.2 million, or $0.36 per diluted share, for the same period in 2024[166]. - For the nine months ended September 30, 2025, net income totaled $3.9 million, or $0.64 per diluted share, compared to $6.5 million, or $1.04 per diluted share, for the same period in 2024[166]. - Cash dividends declared totaled $0.21 per share for the nine months ended September 30, 2025, compared to $0.15 per share for the same period in 2024[182]. - The provision for income taxes decreased to $1.1 million for the nine months ended September 30, 2025, from $2.0 million in 2024, with an effective tax rate of 22.9% compared to 23.5%[205]. Asset and Loan Growth - Total assets increased by 4.2% to $1,147.2 million as of September 30, 2025, compared to $1,101.1 million as of December 31, 2024[175]. - Total loans increased by $44.5 million, or 5.4%, as of September 30, 2025, primarily driven by a $75.9 million growth in consumer indirect loans[176]. - The total loan portfolio increased by $44.5 million, or 5.4%, as of September 30, 2025, compared to December 31, 2024[214]. - As of September 30, 2025, total loans amounted to $867.52 million, with real estate loans comprising $606.44 million, representing 69.9% of total loans[215]. Credit Quality - The provision for credit losses for the nine months ended September 30, 2025, was $3.8 million, significantly higher than $0.2 million for the same period in 2024[170]. - Nonperforming assets decreased to $2.2 million, or 0.19% of total assets, as of September 30, 2025, down from $5.5 million, or 0.50%, as of December 31, 2024[177]. - Net charge-offs totaled $3.3 million for the nine months ended September 30, 2025, up from $0.6 million in the prior year[200]. - The Company's allowance for credit losses (ACL) as a percentage of total loans and leases was 1.23% as of September 30, 2025, slightly down from 1.24% at the end of 2024[201]. Deposits and Equity - Total deposits increased by $29.9 million, or 3.1%, during the nine months ended September 30, 2025, with core deposits totaling $838.4 million, or 83.6% of total deposits[178]. - Shareholders' equity increased by $5.6 million, or 5.7%, as of September 30, 2025, primarily due to earnings net of dividends and share repurchases[181]. - Total deposits increased to $1,002.5 million as of September 30, 2025, from $972.6 million as of December 31, 2024, representing a 3.1% increase[221]. - Core deposits totaled $838.4 million, or 83.6% of total deposits, as of September 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024[221]. Interest Income and Expense - Net interest income increased by $0.6 million, or 2.3%, for the nine months ended September 30, 2025, compared to the same period in 2024[169]. - The net interest margin decreased to 3.57% for the nine months ended September 30, 2025, down from 3.65% for the same period in 2024[169]. - Interest expense decreased by $0.3 million for the nine months ended September 30, 2025, compared to the same period in 2024[197]. - Net interest income for the three months ended September 30, 2025, was $9.662 million, compared to $9.185 million for the same period in 2024[189]. Liquidity and Funding - Total readily available liquidity was $423.9 million as of September 30, 2025, compared to $397.7 million as of December 31, 2024[236]. - The Company had $200.9 million in unused borrowing capacity with the FRB's discount window as of September 30, 2025[232]. - The Company maintained a strong core deposit base and sufficient funding capacity for loan growth and operations as of September 30, 2025[185]. - The Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.2 thousand per account as of September 30, 2025[239]. Investment Portfolio - The yield on investment securities increased to 3.52% for the nine months ended September 30, 2025, compared to 2.93% for the same period in 2024[180]. - As of September 30, 2025, available-for-sale securities totaled $164.0 million, representing 99.7% of the total investment portfolio, down from $167.9 million as of December 31, 2024[209]. - The average life of securities in the investment portfolio increased to 4.2 years as of September 30, 2025, from 3.6 years as of December 31, 2024[208]. - The investment securities portfolio had an estimated average life of 4.2 years as of September 30, 2025, compared to 3.6 years as of December 31, 2024[229]. Operational Developments - The Company is renovating a banking center in Daphne, Alabama, expected to open in the first half of 2026, and opened a new automated banking facility in Mountain Brook, Alabama in October 2025[186]. - Significant increases in non-interest expenses were noted in collection and other real estate/foreclosure expenses, while salaries and benefits decreased[204]. - Non-interest income for the nine months ended September 30, 2025, was $2,584 million, a slight decrease from $2,601 million in 2024[202]. - Total non-interest expense increased by 6.4% to $7.4 million for the three months ended September 30, 2025, and by 1.8% to $21.8 million for the nine months ended September 30, 2025, compared to the same periods in 2024[204]. Interest Rate Risk Management - The Company uses financial simulation models to measure interest rate exposure and assess the potential impact on net interest income[242]. - Under various interest rate scenarios, the pre-tax net interest margin is forecasted to change, with a +1% rate scenario resulting in a 5 basis points increase in net interest margin over one year[244]. - In a +2% interest rate scenario, the cumulative change in net interest income is projected to be $930 thousand over one year[244]. - A -1% interest rate scenario is expected to result in a decrease of $1,166 thousand in net interest income over one year[244].