First US Bancshares, Inc. Reports Second Quarter 2025 Results

Core Viewpoint - First US Bancshares, Inc. reported a significant decline in net income for the second quarter of 2025, primarily due to increased provisions for credit losses on loans and leases compared to previous periods [1][4]. Financial Performance - Net income for 2Q2025 was $0.2 million, or $0.03 per diluted share, down from $1.8 million, or $0.29 per diluted share in 1Q2025, and $2.1 million, or $0.34 per diluted share in 2Q2024 [1]. - 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 [1]. Key Financial Metrics - Interest income for 2Q2025 was $14.854 million, an increase from $14.018 million in 1Q2025 and $14.420 million in 2Q2024 [3]. - Net interest income increased to $9.476 million in 2Q2025, up 6.5% from $8.897 million in 1Q2025 [7]. - Total loans increased by $23.1 million in 2Q2025, driven primarily by a $25.1 million growth in consumer indirect loans [6]. Provision for Credit Losses - The provision for credit losses was $2.7 million in 2Q2025, significantly higher than the $0.528 million in 1Q2025 and $0 in 2Q2024 [8]. - The allowance for credit losses on loans and leases as a percentage of total loans was 1.31% as of June 30, 2025, compared to 1.24% as of December 31, 2024 [8]. Asset Quality - 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 [13]. - Net charge-offs as a percentage of average loans were 0.79% during 2Q2025, compared to 0.13% in 1Q2025 [13]. Deposits and Borrowings - Total deposits increased by $24.9 million, or 2.6%, during 2Q2025, primarily due to increases in interest-bearing demand deposit accounts [10]. - As of June 30, 2025, short-term borrowings were $35.0 million, up from $10.0 million as of December 31, 2024 [11]. Shareholders' Equity - Shareholders' equity totaled $101.9 million as of June 30, 2025, or 8.91% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024 [16][17]. - The Company declared a cash dividend of $0.07 per share in 2Q2025, consistent with the previous quarter [18]. Regulatory Capital - The Bank maintained capital ratios above the required levels to be considered "well-capitalized," with a common equity Tier 1 capital ratio of 10.70% as of June 30, 2025 [20]. Banking Center Growth - The Company is renovating a banking center office in Daphne, Alabama, expected to open in the first half of 2026, and has purchased land in Mobile, Alabama for future development [22].