BIRMINGHAM, Ala., Oct. 28, 2026 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $2.0 million, or $0.36 per diluted share, for the quarter ended September 30, 2026 ("3Q2026"), compared to $1.8 million, or $0.31 per diluted share, for the quarter ended June 30, 2026 ("2Q2026") and $1.9 million, or $0.32 per diluted share, for the quarter ended September 30, 2025 ("3Q2025"). For the nine months ended September 30, 2026, net income totaled $5.7 million, or $1.00 per diluted share, compared to $3.9 million, or $0.64 per diluted share, for the nine months ended September 30, 2025.
The table below summarizes selected financial data for each of the periods presented.
Quarter Ended Nine Months Ended
2026 2025 2026 2025
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
Results of Operations: (Dollars in Thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income $
15,107 $
14,657 $
14,940 $
15,262 $
15,281 $
44,704 $
44,153
Interest expense 5,257 5,157 5,725 5,839 5,619 16,139 16,118
Net interest income 9,850 9,500 9,215 9,423 9,662 28,565 28,035
Provision for credit losses 586 939 254 220 566 1,779 3,811
Net interest income after provision for credit losses 9,264 8,561 8,961 9,203 9,096 26,786 24,224
Non-interest income 967 1,318 840 995 860 3,125 2,584
Non-interest expense 7,713 7,643 7,341 7,271 7,437 22,697 21,799
Income before income taxes 2,518 2,236 2,460 2,927 2,519 7,214 5,009
Provision for income taxes 558 483 515 798 583 1,556 1,146
Net income $
1,960 $
1,753 $
1,945 $
2,129 $
1,936 $
5,658 $
3,863
Per Share Data:
Basic net income per share $
0.36 $
0.31 $
0.34 $
0.37 $
0.33 $
1.01 $
0.66
Diluted net income per share $
0.36 $
0.31 $
0.33 $
0.36 $
0.32 $
1.00 $
0.64
Dividends per share $
0.07 $
0.07 $
0.07 $
0.07 $
0.07 $
0.21 $
0.21
Key Measures (Period End):
Total assets $
1,164,835 $
1,147,619 $
1,165,236 $
1,154,785 $
1,147,175
Tangible assets (1) 1,157,400 1,140,184 1,157,801 1,147,350 1,139,740
Total loans 845,043 860,635 843,697 853,018 867,520
Allowance for credit losses on loans and leases 10,995 10,882 10,536 10,704 10,700
Investment securities, net 194,705 165,959 181,545 168,540 164,493
Total deposits 1,015,067 997,956 1,038,849 1,027,962 1,002,472
Short-term borrowings 30,000 25,000 20,000
Long-term borrowings 11,000 10,982 10,963 10,945 10,927
Total shareholders' equity 96,617 104,285 104,634 105,648 104,238
Tangible common equity (1) 89,182 96,850 97,199 98,213 96,803
Book value per common share 18.82 18.88 18.67 18.53 18.08
Tangible book value per common share (1) 17.37 17.54 17.34 17.23 16.79
Common shares outstanding 5,134,709 5,523,209 5,604,123 5,699,696 5,765,137
Key Ratios:
Return on average assets (annualized) 0.69 0.62 0.67 0.74 0.68 0.66 0.46
% % % % % % %
Return on average common equity (annualized) 7.60 6.73 7.46 8.04 7.48 7.26 5.10
% % % % % % %
Return on average tangible common equity 8.19 7.24 8.02 8.65 8.06 7.82 5.51
% % % % % % %
(annualized) (1)
Pre-tax pre-provision net revenue to average assets 1.09 1.12 0.94 1.09 1.08 1.05 1.06
% % % % % % %
(annualized) (1)
Net interest margin 3.66 3.56 3.37 3.46 3.60 3.53 3.57
% % % % % % %
Efficiency ratio (2) 71.3 70.7 73.0 69.8 70.7 71.6 71.2
% % % % % % %
Total loans to deposits 83.2 86.2 81.2 83.0 86.5
% % % % %
Total loans to assets 72.5 75.0 72.4 73.9 75.6
% % % % %
Common equity to total assets 8.29 9.09 8.98 9.15 9.09
% % % % %
Tangible common equity to tangible assets (1) 7.71 8.49 8.40 8.56 8.49
% % % % %
Tier 1 leverage ratio (3) 9.16 9.16 8.85 9.03 9.19
% % % % %
ACL on loans and leases as % of total loans 1.30 1.26 1.25 1.25 1.23
% % % % %
Nonperforming assets as % of total assets 0.14 0.17 0.16 0.14 0.19
% % % % %
Net charge-offs as a % of average loans (annualized) 0.22 0.30 0.23 0.08 0.61 0.25 0.52
% % % % % % %
(1) Refer to the Non-GAAP Financial Measures section for a reconciliation of this non-GAAP measure to a GAAP amount.
(2) Efficiency ratio = non-interest expense / (net interest income + non-interest income)
(3) First US Bank Tier 1 leverage ratio
CEO Commentary
"We are pleased to report higher earnings and continued expansion of net interest margin during the third quarter," stated James F. House, President and CEO of the Company. "Net income increased by 11.8% and diluted earnings per share ("EPS") by 16.1% compared to the second quarter. Year-to-date net income increased by 46.5% and diluted earnings per share by 56.3% compared to the same period last year. The improvement in net income along with a successful share repurchase campaign during 2026, contributed to strong earnings per share improvement. Our net interest margin improved to 3.66% for the third quarter, while nonperforming assets and net charge-offs as a percentage of average loans declined from the second quarter. Growth in our indirect consumer portfolio continued, while expected project payoffs in multi-family and construction lending contributed to a decrease in total loans. We remain focused on disciplined pricing and credit quality while maintaining flexibility to respond to opportunities in our markets," continued Mr. House.
Financial Results
Loans and Leases - The table below summarizes loan balances by portfolio category as of the end of each of the most recent five quarters.
Quarter Ended
2026 2025
September June March December September
30, 30, 31, 31, 30,
(Dollars in Thousands)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Real estate loans:
Construction, land development and other land loans $35,778 $41,062 $27,236 $32,618 $38,560
Secured by 1-4 family residential properties 63,282 63,093 65,460 66,996 67,620
Secured by multi-family residential properties 98,613 119,362 124,826 117,769 112,763
Secured by non-residential commercial real estate 181,878 181,480 189,408 200,699 211,400
Commercial and industrial loans ("C&I") 43,528 46,834 46,665 48,360 46,562
Consumer loans:
Direct 4,441 4,379 4,362 4,844 4,999
Indirect 417,523 404,425 385,740 381,732 385,616
Total loans and leases held for investment 845,043 860,635 843,697 853,018 867,520
Allowance for credit losses ("ACL") on loans and 10,995 10,882 10,536 10,704 10,700
leases
Net loans and leases held for investment $834,048 $849,753 $833,161 $842,314 $856,820
Total loans decreased by $15.6 million, or 1.8%, to $845.0 million during 3Q2026. Expected project payoffs contributed to declines of $20.7 million in multi-family residential loans and $5.3 million in construction, land development and other land loans. Commercial and industrial loans decreased by $3.3 million. These decreases were partially offset by growth in indirect consumer loans and modest increases in the other portfolio categories. While the Company has experienced substantial payoffs of real estate loans during 2026 (including construction, multi-family and commercial real estate), the commercial lending team is strategically focused on building and maintaining commercial lending relationships that are expected to assist future loan growth. During the nine months ended September 30, 2026, total loans decreased by $8.0 million, or 0.9%. Average total loans for the nine-month period were $854.3 million, an increase of $2.7 million, or 0.3%, compared to the corresponding period of 2025.
The Company's indirect lending platform focuses on borrowers at the higher end of the credit spectrum, as reflected in the portfolio's weighted average credit score at the time of funding of 785 as of September 30, 2026. Indirect consumer loans increased by $13.1 million, or 3.2%, during 3Q2026 and by $35.8 million, or 9.4%, during the nine months ended September 30, 2026. Collateral primarily consists of boats, recreational vehicles, campers, horse trailers and cargo trailers.
The average yield on total loans was 5.98% in 3Q2026, compared to 5.90% in 2Q2026 and 6.10% in 3Q2025. For the nine months ended September 30, 2026, the average yield on loans was 5.94%, compared to 6.07% for the corresponding period of 2025.
Deposits - Total deposits increased by $17.1 million, or 1.7%, to $1.015 billion during 3Q2026, compared to $998.0 million as of June 30, 2026. Compared to December 31, 2025, total deposits decreased by $12.9 million, or 1.3%, reflecting a $21.9 million decrease in wholesale brokered deposits, partially offset by growth in non-wholesale deposits. Excluding the decrease in brokered deposits, total deposits increased by $18.9 million, or 2.2%, during 3Q2026 and by $9.0 million, or 1.0%, comparing September 30, 2026 to December 31, 2025. Non-interest-bearing deposits totaled $162.3 million, or 16.0% of total deposits, as of September 30, 2026, compared to $153.8 million, or 15.0% of total deposits, as of December 31, 2025. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $844.6 million, or 83.2% of total deposits, as of September 30, 2026, compared to $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on total deposits was 1.99% in 3Q2026, compared to 1.98% in 2Q2026 and 2.14% in 3Q2025. For the nine months ended September 30, 2026, the average rate on total deposits was 2.05%, compared to 2.10% for the corresponding period of 2025.
Cash and Investment Securities - As of September 30, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $66.4 million, or 5.7% of total assets, compared to $78.4 million, or 6.8% of total assets, as of December 31, 2025. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $194.7 million as of September 30, 2026, compared to $168.5 million as of December 31, 2025. During the nine months ended September 30, 2026, the Company purchased $71.8 million in investment securities, of which $46.4 million were purchased in 3Q2026. These purchases, combined with the maturity and paydown of investment securities at lower rates, have led to continued improvement in yield on the portfolio. The average yield on investment securities increased to 4.17% in 3Q2026, compared to 3.95% in 2Q2026 and 3.65% in 3Q2025. For the nine months ended September 30, 2026, the average yield on investment securities was 4.00%, compared to 3.52% for the corresponding period of 2025. As of September 30, 2026, the expected average life of securities in the investment portfolio was 4.0 years, compared to 3.7 years as of December 31, 2025.
Net Interest Income and Margin - Net interest income totaled $9.9 million in 3Q2026, reflecting an increase of $350 thousand, or 3.7%, compared to 2Q2026 and an increase of $188 thousand, or 1.9%, compared to 3Q2025. Net interest margin increased to 3.66% in 3Q2026, compared to 3.56% in 2Q2026 and 3.60% in 3Q2025. The sequential improvement reflected higher yields on loans and investment securities, while the average rate on total deposits remained relatively stable. Compared to 3Q2025, lower deposit costs and a higher yield on investment securities more than offset a lower loan yield. For the nine months ended September 30, 2026, net interest income totaled $28.6 million, reflecting an increase of $530 thousand, or 1.9%, compared to the corresponding period of 2025. Net interest margin was 3.53% for the nine-month period, compared to 3.57% for the corresponding period of 2025, reflecting lower loan yields that were partially offset by higher investment securities yields and lower deposit costs.
Asset Quality - Nonperforming assets, including loans in non-accrual status, other real estate owned and repossessed assets, totaled $1.7 million as of September 30, 2026, compared to $1.9 million as of June 30, 2026 and $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets represented 0.14% of total assets as of September 30, 2026, compared to 0.17% as of June 30, 2026 and 0.14% as of December 31, 2025. Annualized net charge-offs as a percentage of average loans were 0.22% in 3Q2026, compared to 0.30% in 2Q2026 and 0.61% in 3Q2025. For the nine months ended September 30, 2026, annualized net charge-offs as a percentage of average loans were 0.25%, compared to 0.52% for the corresponding period of 2025. The year-over-year improvement reflected, in part, the absence of a $2.2 million charge-off of an individually evaluated commercial loan recorded in 2025.
Provision for Credit Losses - During 3Q2026, the Company recorded a provision for credit losses totaling $586 thousand, compared to $939 thousand in 2Q2026 and $566 thousand in 3Q2025. For the nine months ended September 30, 2026, the provision for credit losses totaled $1.8 million, compared to $3.8 million for the corresponding period of 2025. The year-over-year decrease resulted primarily from provisioning for specifically identified commercial loans in 2025, which were resolved by the end of 2025 and, accordingly, the same level of provisioning was not repeated during the nine months ended September 30, 2026. The Company's ACL on loans and leases totaled $11.0 million, or 1.30% of total loans, as of September 30, 2026, compared to $10.9 million, or 1.26%, as of June 30, 2026 and $10.7 million, or 1.25%, as of December 31, 2025. The increase in the ACL as a percentage of total loans during both the three- and nine-month periods ended September 30, 2026 reflected changes in loan portfolio composition, including more prominent growth in indirect consumer loans, which require higher credit allowances than other loan categories, as well as updated economic forecast data released in 3Q2026. While management believes that the ACL is adequate to absorb credit losses within the Company's loan portfolio, inherent uncertainty exists regarding the ultimate impact of geopolitical and economic matters, including prospective inflation, unemployment levels, tariffs and consumer affordability.
Pre-tax Pre-provision Net Revenue ("PPNR") - PPNR totaled $3.1 million in 3Q2026, compared to $3.2 million in 2Q2026 and $3.1 million in 3Q2025. As a percentage of average assets, PPNR was 1.09% (annualized) in 3Q2026, compared to 1.12% (annualized) in 2Q2026 and 1.08% (annualized) in 3Q2025. For the nine months ended September 30, 2026, PPNR totaled $9.0 million, or 1.05% (annualized) of average assets, compared to $8.8 million, or 1.06% (annualized) of average assets, for the corresponding period of 2025. PPNR is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section for a reconciliation of PPNR to net income.
Non-interest Income - Non-interest income totaled $967 thousand in 3Q2026, compared to $1.3 million in 2Q2026 and $860 thousand in 3Q2025. The sequential decrease reflected lower gains on sales and prepayments of investment securities, while the increase compared to 3Q2025 reflected higher service and other charges on deposit accounts and other income. For the nine months ended September 30, 2026, non-interest income totaled $3.1 million, compared to $2.6 million for the corresponding period of 2025, reflecting an increase of $541 thousand. Net gains on sales and prepayments of investment securities of $463 thousand accounted for most of the year-to-date increase.
Non-interest Expense - Non-interest expense totaled $7.7 million in 3Q2026, compared to $7.6 million in 2Q2026 and $7.4 million in 3Q2025. The increase of $276 thousand compared to 3Q2025 resulted primarily from a $306 thousand increase in salaries and employee benefits, partially offset by lower fees for professional services and net occupancy and equipment expense. For the nine months ended September 30, 2026, non-interest expense totaled $22.7 million, compared to $21.8 million for the corresponding period of 2025. The year-to-date increase of $898 thousand reflected an increase of $451 thousand in other expenses primarily associated with losses on sale of repossessed assets, and higher telephone and legal expenses. In addition, salaries and employee benefits increased by $337 thousand, net occupancy and equipment expense increased by $137 thousand, and insurance expense and assessments increased by $75 thousand, partially offset by lower fees for professional services and computer services expense.
Shareholders' Equity - As of September 30, 2026, shareholders' equity totaled $96.6 million, or 8.29% of total assets, compared to $105.6 million, or 9.15% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders' equity during the nine months ended September 30, 2026, the increase was fully offset by share repurchases during the period, combined with an increase in the Company's accumulated other comprehensive loss resulting from increases in market interest rates comparing September 30, 2026 to December 31, 2025. The Company's ratio of tangible common equity to tangible assets was 7.71% as of September 30, 2026, compared to 8.56% as of December 31, 2025.
Cash Dividend - In 3Q2026, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividends declared in each of the first two quarters of 2026 and all four quarters of 2025. Dividends declared for the nine months ended September 30, 2026 totaled $0.21 per share, consistent with the corresponding period of 2025.
Share Repurchases - During 3Q2026, the Company completed the repurchase of 390,000 shares of its common stock at a weighted average price of $16.43 per share, bringing total share repurchases for the nine months ended September 30, 2026, to 627,500 shares at a weighted average price of $16.02 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded in 2025. As of September 30, 2026, 1,157,313 shares remained available for repurchase under the program.
Regulatory Capital - During 3Q2026, the Bank continued to maintain capital ratios at higher levels than required to be considered a "well-capitalized" institution under applicable banking regulations. As of September 30, 2026, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.00%, its total capital ratio was 12.20%, and its Tier 1 leverage ratio was 9.16%.
Liquidity - As of September 30, 2026, the Company continued to maintain funding capacity sufficient to provide adequate liquidity for loan growth, capital expenditures and ongoing operations. The Company benefits from a strong core deposit base, a liquid investment securities portfolio and access to funding from a variety of sources, including federal funds lines with other banking institutions, Federal Home Loan Bank advances, the Federal Reserve Board's discount window, and wholesale brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity.
Banking Center Growth - The Company expanded its banking center footprint during 2Q2026 with the opening of a new office in Daphne, Alabama. The location serves as the Bank's initial deposit gathering facility in the Daphne/Mobile area. The Company also purchased an office in Orange Beach, Alabama, during 2Q2026, which is expected to serve as a banking center following the completion of renovations. The Orange Beach location is expected to open to the public in 2027.
About First US Bancshares, Inc.
First US Bancshares, Inc. (the "Company") is a bank holding company that operates banking offices in Alabama, Tennessee, and Virginia through First US Bank (the "Bank"). The Company files periodic reports with the U.S. Securities and Exchange Commission (the "SEC"). Copies of its filings may be obtained through the SEC's website at www.sec.gov or at www.firstusbank.com. More information about the Company and the Bank may be obtained at www.firstusbank.com. The Company's stock is traded on the Nasdaq Capital Market under the symbol "FUSB."
Forward-Looking Statements
This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. The Company undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, the Company, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of the Company's senior management based upon current information and involve a number of risks and uncertainties.
Certain factors that could affect the accuracy of such forward-looking statements and cause actual results to differ materially from those projected in such forward-looking statements are identified in the public filings made by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be considered in light of those factors. Such factors may include risk related to the Company's credit, including loan losses may be greater than anticipated;our ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future financial obligations; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; liquidity risks; the impact of national and local market conditions on the Company's business and operations; the rate of growth (or lack thereof) in the economy generally and in the Company's service areas; the effects of significant changes to the structure and operations of the federal government; digital banking trends may create deposit volatility; strong competition in the banking industry; the impact of changes in interest rates and monetary policy on the Company's performance and financial condition; the effects of fiscal challenges facing the U.S. government or any potential government shutdown; effects of changes in the policies of monetary authorities and other government action; the impact of technological changes in the banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence ("AI"); risks of dependence on outside third parties for the processing and handling of our records and data; the costs of complying with extensive governmental regulation; the risk that internal controls and procedures might fail or be circumvented; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the potential impact of climate change related legislative and regulatory initiatives; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties;the volatility of our stock price; our dependence on the soundness of other financial institutions; and other risk factors described from time to time in the Company's public filings, including, but not limited to, the Company's most recent Annual Report on Form 10-K. Relative to the Company's dividend policy, the payment of cash dividends is subject to the discretion of the Board of Directors and will be determined in light of then-current conditions, including the Company's earnings, leverage, operations, financial conditions, capital requirements and other factors deemed relevant by the Board of Directors. In the future, the Board of Directors may change the Company's dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.
FIRST US BANCSHARES, INC. AND SUBSIDIARY
NET INTEREST MARGIN
THREE MONTHS ENDED
SEPTEMBER 30, 2026 AND 2025
(Dollars in Thousands)
(Unaudited)
Three Months Ended Three Months Ended
September 30, 2026 September 30, 2025
Average Interest Annualized Average Interest Annualized
Balance Yield/ Balance Yield/
Rate Rate
% %
ASSETS
Interest-earning assets:
Loans $857,791 $12,936 5.98 % $871,926 $13,413 6.10 %
Investment securities 171,365 1,801 4.17 % 151,303 1,391 3.65 %
Federal Home Loan Bank stock 1,639 25 6.05 % 1,328 21 6.27 %
Federal funds sold and securities purchased under 4,850 46 3.76 % 4,850 54 4.42 %
reverse repurchase agreements
Interest-bearing deposits in banks 32,905 299 3.61 % 36,087 402 4.42 %
Total interest-earning assets 1,068,550 15,107 5.61 % 1,065,494 15,281 5.69 %
Noninterest-earning assets 66,032 64,765
Total assets $1,134,582 $1,130,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits $200,758 339 0.67 % $195,955 386 0.78 %
Money market/savings deposits 319,224 1,940 2.41 % 300,736 2,068 2.73 %
Time deposits 320,871 2,690 3.33 % 345,916 2,914 3.34 %
Total interest-bearing deposits 840,853 4,969 2.34 % 842,607 5,368 2.53 %
Noninterest-bearing demand deposits 152,062 152,474
Total deposits 992,915 4,969 1.99 % 995,081 5,368 2.14 %
Borrowings 28,665 288 3.99 % 22,472 251 4.43 %
Total funding liabilities 1,021,580 5,257 2.04 % 1,017,553 5,619 2.19 %
Other noninterest-bearing liabilities 10,624 9,969
Shareholders' equity 102,378 102,737
Total liabilities and shareholders' equity $1,134,582 $1,130,259
Net interest income $9,850 $9,662
Net interest margin 3.66 % 3.60 %
FIRST US BANCSHARES, INC. AND SUBSIDIARY
NET INTEREST MARGIN
NINE MONTHS ENDED
SEPTEMBER 30, 2026 AND 2025
(Dollars in Thousands)
(Unaudited)
Nine Months Ended Nine Months Ended
September 30, 2026 September 30, 2025
Average Interest Annualized Average Interest Annualized
Balance Yield/ Balance Yield/
Rate Rate
% %
ASSETS
Interest-earning assets:
Loans $
854,295 $
37,981 5.94 $
851,561 $
38,643 6.07
% %
Investment securities 173,877 5,207 4.00 157,319 4,138 3.52
% %
Federal Home Loan Bank stock 1,291 59 6.11 1,330 71 7.14
% %
Federal funds sold and securities purchased under 8,978 260 3.87 4,850 160 4.41
% %
reverse repurchase agreements
Interest-bearing deposits in banks 43,976 1,197 3.64 34,375 1,141 4.44
% %
Total interest-earning assets 1,082,417 44,704 5.52 1,049,435 44,153 5.63
% %
Noninterest-earning assets 64,917 64,034
Total assets $
1,147,334 $
1,113,469
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Demand deposits $
206,156 1,088 0.71 $
203,880 1,317 0.86
% %
Money market/savings deposits 325,630 6,063 2.49 277,149 5,355 2.58
% %
Time deposits 328,436 8,344 3.40 344,310 8,690 3.37
% %
Total interest-bearing deposits 860,222 15,495 2.41 825,339 15,362 2.49
% %
Noninterest-bearing demand deposits 151,052 154,390
Total deposits 1,011,274 15,495 2.05 979,729 15,362 2.10
% %
Borrowings 21,365 644 4.03 22,944 756 4.41
% %
Total funding liabilities 1,032,639 16,139 2.09 1,002,673 16,118 2.15
% %
Other noninterest-bearing liabilities 10,471 9,521
Shareholders' equity 104,224 101,275
Total liabilities and shareholders' equity $
1,147,334 $
1,113,469
Net interest income $
28,565 $
28,035
Net interest margin 3.53 3.57
% %
FIRST US BANCSHARES, INC. AND SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, Except Share and Per Share Data)
September 30, December 31,
2026 2025
(Unaudited)
ASSETS
Cash and due from banks $
10,858 $
9,401
Interest-bearing deposits in banks 50,722 64,146
Total cash and cash equivalents 61,580 73,547
Federal funds sold and securities purchased under reverse repurchase agreements 4,850 4,850
Investment securities available-for-sale, at fair value (amortized cost $202,314 and 194,352 168,075
$169,037; net of allowance for credit losses of $- and $-)
Investment securities held-to-maturity, at amortized cost, net of allowance for credit 353 465
losses of $- and $-, (fair value 2026 - $333, 2025 - $449)
Federal Home Loan Bank stock, at cost 2,016 791
Loans and leases held for investment 845,043 853,018
Less allowance for credit losses on loans and leases 10,995 10,704
Net loans and leases held for investment 834,048 842,314
Premises and equipment, net of accumulated depreciation 27,043 26,284
Cash surrender value of bank-owned life insurance 17,645 17,378
Accrued interest receivable 3,903 3,916
Goodwill and core deposit intangible, net 7,435 7,435
Other real estate owned 134 256
Other assets 11,476 9,474
Total assets $
1,164,835 $
1,154,785
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing $
162,270 $
153,809
Interest-bearing 852,797 874,153
Total deposits 1,015,067 1,027,962
Accrued interest expense 1,493 2,526
Other liabilities 10,658 7,704
Short-term borrowings 30,000
Long-term borrowings 11,000 10,945
Total liabilities 1,068,218 1,049,137
Shareholders' equity:
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 8,024,422 and 80 79
7,947,303 shares issued, respectively; 5,134,709 and 5,699,696 shares outstanding,
respectively
Additional paid-in capital 16,579 16,005
Accumulated other comprehensive loss, net of tax (4,622) (780)
Retained earnings 125,764 121,249
Less treasury stock: 2,889,713 and 2,247,607 shares at cost, respectively (41,184) (30,905)
Total shareholders' equity 96,617 105,648
Total liabilities and shareholders' equity $
1,164,835 $
1,154,785
FIRST US BANCSHARES, INC. AND SUBSIDIARY
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
2026 2025 2026 2025
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income:
Interest and fees on loans $
12,936 $
13,413 $
37,981 $
38,643
Interest on investment securities 1,801 1,391 5,207 4,138
Interest on deposits in banks 299 402 1,197 1,141
Other 71 75 319 231
Total interest income 15,107 15,281 44,704 44,153
Interest expense:
Interest on deposits 4,969 5,368 15,495 15,362
Interest on borrowings 288 251 644 756
Total interest expense 5,257 5,619 16,139 16,118
Net interest income 9,850 9,662 28,565 28,035
Provision for credit losses 586 566 1,779 3,811
Net interest income after provision for credit losses 9,264 9,096 26,786 24,224
Non-interest income:
Net gain on sales and prepayments of investment securities 5 11 463 13
Service and other charges on deposit accounts 321 289 881 855
Lease income 271 262 812 815
Other income, net 370 298 969 901
Total non-interest income 967 860 3,125 2,584
Non-interest expense:
Salaries and employee benefits 4,065 3,759 11,777 11,440
Net occupancy and equipment 949 987 2,936 2,799
Computer services 467 431 1,261 1,264
Insurance expense and assessments 350 348 1,173 1,098
Fees for professional services 311 363 949 1,048
Other expense 1,571 1,549 4,601 4,150
Total non-interest expense 7,713 7,437 22,697 21,799
Income before income taxes 2,518 2,519 7,214 5,009
Provision for income taxes 558 583 1,556 1,146
Net income $
1,960 $
1,936 $
5,658 $
3,863
Basic net income per share $
0.36 $
0.33 $
1.01 $
0.66
Diluted net income per share $
0.36 $
0.32 $
1.00 $
0.64
Dividends per share $
0.07 $
0.07 $
0.21 $
0.21
Non-GAAP Financial Measures
In addition to the financial results presented in this press release that have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company's management believes that certain non-GAAP financial measures and ratios are beneficial to the reader. These non-GAAP measures have been provided to enhance overall understanding of the Company's current financial performance and position. Management believes that these presentations provide meaningful comparisons of financial performance and position in various periods and can be used as a supplement to the GAAP-based measures presented in this press release. The non-GAAP financial results presented should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Management believes that both GAAP measures of the Company's financial performance and the respective non-GAAP measures should be considered together.
The non-GAAP measures and ratios that have been provided in this press release include measures of liquidity, pre-tax pre-provision net revenue, tangible assets and equity, and certain ratios that include tangible assets and equity. Discussion of these measures and ratios is included below, along with reconciliations of such non-GAAP measures to GAAP amounts included in the consolidated financial statements previously presented in this press release.
Liquidity Measures
The table below provides information combining the Company's on-balance sheet liquidity with readily available off-balance sheet sources of liquidity as of both September 30, 2026 and December 31, 2025.
September 30, December 31,
2026 2025
(Dollars in Thousands)
(Unaudited) (Unaudited)
Liquidity from cash, federal funds sold and securities purchased under reverse repurchase
agreements:
Cash and cash equivalents $
61,580 $
73,547
Federal funds sold and securities purchased under reverse repurchase agreements 4,850 4,850
Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase 66,430 78,397
agreements
Liquidity from pledgable investment securities:
Investment securities available-for-sale, at fair value 194,352 168,075
Investment securities held-to-maturity, at amortized cost 353 465
Less: securities pledged (79,671) (58,497)
Less: estimated collateral value discounts (10,778) (10,671)
Total liquidity from pledgable investment securities 104,256 99,372
Liquidity from unused lendable collateral (loans) at FHLB 23,866 30,504
Liquidity from unused lendable collateral (loans and securities) at FRB 221,361 210,921
Unsecured lines of credit with banks 48,000 48,000
Total readily available liquidity $
463,913 $
467,194
The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company's consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB), as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are non-GAAP measures used by management and regulators to analyze a portion of the Company's liquidity. Management uses these measures to evaluate the Company's liquidity position.
Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-to-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheet, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value.
The Company's readily available liquidity position decreased to $463.9 million as of September 30, 2026, compared to $467.2 million as of December 31, 2025, due to a combination of factors, including a reduction in cash and cash equivalents commensurate with efforts to improve balance sheet efficiency and increased usage of secured short-term borrowings as of September 30, 2026. While readily available liquidity decreased comparing September 30, 2026 to December 31, 2025, management believes that the Company maintained ample access to liquidity relative to estimated uninsured deposits. Excluding wholesale brokered deposits, as of September 30, 2026, the Bank had approximately 27 thousand deposit accounts with an average balance of approximately $32.9 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $190.0 million, or 18.7% of total deposits, as of September 30, 2026. As of December 31, 2025, estimated uninsured deposits totaled $218.0 million, or 21.2% of total deposits.
Pre-tax Pre-provision Net Revenue
The Company utilizes pre-tax pre-provision net revenue ("PPNR") as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company's profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company's core operating profitability on a trended basis. In management's experience, PPNR and PPNR (annualized) as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company's calculation of PPNR to amounts recorded in accordance with GAAP.
Quarter Ended Nine Months Ended
2026 2025 2026 2025
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
(Dollars in Thousands)
(Unaudited Reconciliation)
Net income $1,960 $1,753 $1,945 $2,129 $1,936 $5,658 $3,863
Add: Provision for income taxes 558 483 515 798 583 1,556 1,146
Add: Provision for credit losses 586 939 254 220 566 1,779 3,811
Pre-tax pre-provision net $3,104 $3,175 $2,714 $3,147 $3,085 $8,993 $8,820
revenue
Average assets $1,134,582 $1,134,454 $1,173,390 $1,145,476 $1,130,259 $1,147,334 $1,113,469
PPNR as a percentage of average 1.09 % 1.12 % 0.94 % 1.09 % 1.08 % 1.05 % 1.06 %
assets (annualized)
Tangible Balances and Measures
In addition to capital ratios defined by GAAP and banking regulators, the Company utilizes various tangible common equity measures when evaluating capital utilization and adequacy. These measures, which are presented in the financial tables in this press release, may also include calculations of tangible assets. As defined by the Company, tangible common equity represents shareholders' equity less goodwill and identifiable intangible assets, while tangible assets represent total assets less goodwill and identifiable intangible assets.
Management believes that the measures of tangible equity are important because they reflect the level of capital available to withstand unexpected market conditions. In addition, presentation of these measures allows readers to compare certain aspects of the Company's capitalization to other organizations. In management's experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets that typically result from the use of the purchase accounting method in accounting for mergers and acquisitions.
These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these measures, management believes that there are no comparable GAAP financial measures to the tangible common equity ratios that the Company utilizes. Despite the importance of these measures to the Company, there are no standardized definitions for the measures, and, therefore, the Company's calculations may not be comparable with those of other organizations. In addition, there may be limits to the usefulness of these measures to investors. Accordingly, management encourages readers to consider the Company's consolidated financial statements in their entirety and not to rely on any single financial measure. The table below reconciles the Company's calculations of these measures to amounts reported in accordance with GAAP.
Quarter Ended Nine Months Ended
2026 2025 2026 2025
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
(Dollars in Thousands, Except Per Share Data)
(Unaudited Reconciliation)
TANGIBLE BALANCES
---
Total assets $1,164,835 $1,147,619 $1,165,236 $1,154,785 $1,147,175
Less: Goodwill 7,435 7,435 7,435 7,435 7,435
Less: Core deposit intangible
Tangible assets (a) $1,157,400 $1,140,184 $1,157,801 $1,147,350 $1,139,740
Total shareholders' equity $96,617 $104,285 $104,634 $105,648 $104,238
Less: Goodwill 7,435 7,435 7,435 7,435 7,435
Less: Core deposit intangible
Tangible common equity (b) $89,182 $96,850 $97,199 $98,213 $96,803
Average shareholders' equity $102,378 $104,539 $105,790 $105,067 $102,737 $104,224 $101,275
Less: Average goodwill 7,435 7,435 7,435 7,435 7,435 7,435 7,435
Less: Average core deposit intangible 4 21
Average tangible shareholders' (c) $94,943 $97,104 $98,355 $97,632 $95,298 $96,789 $93,819
equity
Net income (d) $1,960 $1,753 $1,945 $2,129 $1,936 $5,658 $3,863
Common shares outstanding (in (e) 5,135 5,523 5,604 5,700 5,765
thousands)
TANGIBLE MEASURES
---
Tangible book value per common (b)/(e) $17.37 $17.54 $17.34 $17.23 $16.79
share
Tangible common equity to (b)/(a) 7.71 % 8.49 % 8.40 % 8.56 % 8.49 %
tangible assets
Return on average tangible (1) 8.19 % 7.24 % 8.02 % 8.65 % 8.06 % 7.82 % 5.51 %
common equity (annualized)
(1) Calculation of Return on average tangible common equity (annualized) = ((net income (d) /number of days in period) * number of days in year) /
average tangible shareholders' equity (c)
Contact: Thomas S.
Elley
205-582-1200
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SOURCE First US Bancshares, Inc.
