First US Bancshares, Inc. Reports Fourth Quarter and 2025 Results: Quarter-over-Quarter Net Income Improvement of 10%

BIRMINGHAM, Ala., Jan. 28, 2026 /PRNewswire/ -- Fourth Quarter and Full Year Highlights:

First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $2.1 million, or $0.36 per diluted share, for the quarter ended December 31, 2025 ("4Q2025"), compared to $1.9 million, or $0.32 per diluted share, for the quarter ended September 30, 2025 ("3Q2025") and $1.7 million, or $0.29 per diluted share, for the quarter ended December 31, 2024 ("4Q2024"). For the year ended December 31, 2025, net income totaled $6.0 million, or $1.00 per diluted share, compared to $8.2 million, or $1.33 per diluted share, for the year ended December 31, 2024.

The table below summarizes selected financial data for each of the periods presented.

Quarter Ended

Year Ended

2025

2024

2025

2024

December

31,

September

30,

June

30,

March

31,

December

31,

December

31,

December

31,

Results of Operations: (Dollars in Thousands)

(Unaudited)

Interest income

15,262

15,281

14,854

14,018

14,420

59,415

58,260

Interest expense

5,839

5,619

5,378

5,121

5,672

21,957

22,111

Net interest income

9,423

9,662

9,476

8,897

8,748

37,458

36,149

Provision for credit losses

220

566

2,717

528

470

4,031

622

Net interest income after provision for credit losses

9,203

9,096

6,759

8,369

8,278

33,427

35,527

Non-interest income

995

860

849

875

982

3,579

3,583

Non-interest expense

7,271

7,437

7,444

6,918

6,947

29,070

28,356

Income before income taxes

2,927

2,519

164

2,326

2,313

7,936

10,754

Provision for income taxes

798

583

554

599

1,944

2,584

Net income

2,129

1,936

155

1,772

1,714

5,992

8,170

Per Share Data:

Basic net income per share

0.37

0.33

0.03

0.30

1.03

1.40

Diluted net income per share

0.36

0.32

0.03

0.29

1.00

1.33

Dividends declared

0.07

0.28

0.22

Key Measures (Period End):

Total assets

1,154,785

1,147,175

1,143,379

1,126,967

1,101,086

Tangible assets (1)

1,147,350

1,139,740

1,135,932

1,119,502

1,093,602

Total loans

853,018

867,520

871,431

848,335

823,039

Allowance for credit losses ("ACL") on loans and

leases

10,704

10,700

11,388

10,405

10,184

Investment securities, net

168,540

164,493

157,137

161,946

168,570

Total deposits

1,027,962

1,002,472

986,846

961,952

972,557

Short-term borrowings

—

20,000

35,000

45,000

10,000

Long-term borrowings

10,945

10,927

10,909

10,890

10,872

Total shareholders' equity

105,648

104,238

101,892

101,231

98,624

Tangible common equity (1)

98,213

96,803

94,445

93,766

91,140

Book value per common share

18.53

18.08

17.70

17.64

17.31

Tangible book value per common share (1)

17.23

16.79

16.41

16.34

16.00

Key Ratios:

Return on average assets (annualized)

0.74

0.68

0.06

0.66

0.63

0.53

0.76

Return on average common equity (annualized)

8.04

7.48

0.61

7.21

6.92

5.86

8.62

Return on average tangible common equity (annualized) (1)

8.65

8.06

0.66

7.79

7.49

6.32

9.37

Pre-tax pre-provision net revenue to average assets

(annualized) (1)

1.09

1.08

1.03

1.06

1.02

1.07

1.06

Net interest margin

3.46

3.60

3.59

3.53

3.41

3.54

3.59

Efficiency ratio (2)

69.8

70.7

72.1

70.8

71.4

70.8

71.4

Total loans to deposits

83.0

86.5

88.3

88.2

84.6

Total loans to assets

73.9

75.6

76.2

75.3

74.7

Common equity to total assets

9.15

9.09

8.91

8.98

8.96

Tangible common equity to tangible assets (1)

8.56

8.49

8.31

8.38

8.33

Tier 1 leverage ratio (3)

9.03

9.19

9.23

9.55

9.50

ACL on loans and leases as % of total loans

1.25

1.23

1.31

1.23

1.24

Nonperforming assets as % of total assets

0.14

0.19

0.33

0.44

0.50

Net charge-offs as a percentage of average loans

(annualized)

0.08

0.61

0.79

0.13

0.24

0.41

0.14

(1) Refer to the non-GAAP reconciliations beginning on page 10.

(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 conclude 2025 with a quarter of continued strong earnings growth," stated James F. House, President and CEO of the Company. "Fourth quarter net income improved by 10% compared to the prior quarter and 24% compared to the fourth quarter of 2024. In addition, we saw continued improvement in loan portfolio credit metrics, with substantial decreases in both net charge-offs and nonperforming assets," continued Mr. House. "While 2025 was a challenging year, particularly related to credit issues that were largely resolved by the third quarter, we have continued to build momentum and are excited about the Company's prospects for 2026."

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

2025

2024

December

31,

September

30,

June

30,

March

31,

December

31,

(Dollars in Thousands)

(Unaudited)

Real estate loans:

Construction, land development and other land loans

$32,618

$38,560

$48,101

$58,572

$65,537

Secured by 1-4 family residential properties

66,996

67,620

67,587

68,523

69,999

Secured by multi-family residential properties

117,769

112,763

118,807

106,374

101,057

Secured by non-residential commercial real estate

200,699

211,400

215,035

214,065

227,751

Commercial and industrial loans ("C&I")

48,360

46,562

40,986

45,166

44,238

Consumer loans:

Direct

4,844

4,999

4,836

4,610

4,774

Indirect

381,732

385,616

376,079

351,025

309,683

Total loans and leases held for investment

853,018

867,520

871,431

848,335

823,039

Allowance for credit losses on loans and leases

10,704

10,700

11,388

10,405

10,184

Net loans and leases held for investment

$842,314

$856,820

$860,043

$837,930

$812,855

Total loans decreased by $14.5 million in 4Q2025 as growth in the multi-family residential real estate and C&I categories was offset by decreases primarily in the commercial real estate, construction, and indirect consumer categories. The decrease in non-residential commercial real estate was related to completed construction projects that moved into a permanent category, but were subsequently refinanced into the permanent market. The decrease in construction is consistent with the ebb and flow of projects in the Company's service territories. Construction loans are generally short-to-medium term loans that are expected to pay off or transfer to another loan category upon project completion. The decrease in indirect consumer was related to the seasonality of the types of collateral financed in this category. Despite the decrease in loan volume during the final quarter, for the year ended December 31, 2025, total loans increased by $30.0 million, or 3.6%. The annual growth was due to substantial growth in the consumer indirect category, and to a lesser extent, the multi-family residential and C&I categories. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score of new indirect loans financed during the year ended December 31, 2025 was 797, while the weighted average credit score for the entire portfolio was 783. For the year ended December 31, 2025, the Company's average total loan balance increased by $37.5 million, or 4.6%, compared to the year ended December 31, 2024. Consistent with the prevailing interest rate environment, aggregate loan yields generally decreased in 2025. The average yield on loans totaled 6.03% in 4Q2025, compared to 6.10% in 3Q2025 and 6.12% in 4Q2024. For the year ended December 31, 2025, the average loan yield was 6.06%, compared to 6.29% for the year ended December 31, 2024.

Deposits – Total deposits increased by $25.5 million, or 2.5%, during 4Q2025, due primarily to increases in interest-bearing demand deposits of $9.2 million and increases in certificates of deposit of $18.4 million, partially offset by a $2.1 million decrease in noninterest-bearing deposits. The growth in certificates of deposit balances during the quarter resulted from net growth of $26.2 million in wholesale brokered deposits, partially offset by a reduction of $7.8 million in retail balances. The brokered deposits acquired by the Company in 4Q2025 were obtained in conjunction with interest rate derivative instruments that are intended to support the Company's overall interest rate hedging strategy. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $838.3 million, or 81.6% of total deposits, as of December 31, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024. The average rate on deposits totaled 2.19% during 4Q2025, compared to 2.14% during 3Q2025, and 2.28% during 4Q2024. Fluctuations in deposit costs have been relatively consistent with changes in market interest rates; however, significant competitive pressure remains to acquire and maintain deposit balances in the current environment. For the year ended December 31, 2025, the Company's average rate on deposits totaled 2.12%, compared to 2.25% for the year ended December 31, 2024.

Net Interest Income and Margin – Net interest income in 4Q2025 decreased by $0.2 million, or 2.5%, compared to 3Q2025 and increased by $0.7 million, or 7.7%, compared to 4Q2024. Net interest margin was 3.46% for 4Q2025, compared to 3.60% for 3Q2025 and 3.41% for 4Q2024. For the year ended December 31, 2025, net interest income increased by $1.3 million, or 3.6%, compared to the year ended December 31, 2024, while net interest margin decreased to 3.54% from 3.59% comparing 2025 to 2024.

Provision for Credit Losses – During 4Q2025, the Company recorded a provision for credit losses of $0.2 million, compared to $0.6 million in 3Q2025 and $0.5 million in 4Q2024. For the year ended December 31, 2025, the provision for credit losses totaled $4.0 million, compared to $0.6 million for the year ended December 31, 2024. Of the total provision recorded in 2025, $2.7 million occurred in the second quarter and resulted from substantial growth in the consumer indirect category, combined with an increase in net charge-offs in the category, as well as from additional credit allowances on two individually evaluated commercial loans. During both 3Q2025 and 4Q2025, charge-offs associated with the indirect portfolio decreased relative to the second quarter and credit issues associated with the two individually evaluated commercial loans were substantially resolved. During 4Q2025, credit metrics related to the loan portfolio generally improved; however, uncertainty continues to exist pertaining to the ultimate impact on the Company's loan portfolio of economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability. As of December 31, 2025, the Company's allowance for credit losses ("ACL") on loans and leases as a percentage of total loans was 1.25%, compared to 1.24% as of December 31, 2024.

Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $3.1 million in both 4Q2025 and 3Q2025, compared to $2.8 million in 4Q2024. For the year ended December 31, 2025, PPNR totaled $12.0 million compared to $11.4 million for the year ended December 31, 2024. As a percentage of average assets, PPNR totaled 1.09% in 4Q2025 compared to 1.08% in 3Q2025 and 1.02% in 4Q2024. For the year ended December 31, 2025, PPNR as a percentage of average assets was 1.07% compared to 1.06% for the year ended December 31, 2024. Refer to the non-GAAP reconciliation of PPNR to net income beginning on page 11.

Short-term Borrowings – As of December 31, 2025, the Company did not have any short-term borrowings outstanding, compared to $10.0 million in outstanding short-term borrowings as of December 31, 2024. As of December 31, 2024, all outstanding short-term borrowings had remaining maturities of less than 30 days and were borrowed exclusively from the Federal Home Loan Bank of Atlanta (FHLB).

Cash and Investment Securities – As of December 31, 2025, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $78.4 million, or 6.8% of total assets, compared to $52.9 million, or 4.8% of total assets, as of December 31, 2024. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $168.5 million as of December 31, 2025 compared to $168.6 million as of December 31, 2024. As of December 31, 2025, the expected average life of securities in the investment portfolio was 3.7 years compared to 3.6 years as of December 31, 2024. During the year ended December 31, 2025 and 2024, the Company purchased $43.7 million and $58.0 million, respectively, of investment securities at market rates in existence at the time of purchase. 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 yield on investment securities, including both available-for-sale and held to maturity securities, totaled 3.81% during 4Q2025, compared to 3.65% during 3Q2025 and 3.26% during 4Q2024. For the year ended December 31, 2025, the yield on investment securities totaled 3.59%, compared to 3.02% for the year ended December 31, 2024.

Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $1.6 million as of December 31, 2025, a decrease from $5.5 million as of December 31, 2024. As a percentage of total assets, nonperforming assets decreased to 0.14% as of December 31, 2025 compared to 0.50% as of December 31, 2024. Net charge-offs as a percentage of average loans totaled 0.08% during 4Q2025 compared to 0.61% during 3Q2025 and 0.24% during 4Q2024. For the year ended December 31, 2025, annualized net charge-offs as a percentage of average loans totaled 0.41% compared to 0.14% for the year ended December 31 2024.

Non-interest Income – Non-interest income remained relatively consistent, totaling $1.0 million in 4Q2025 compared to $0.9 million in 3Q2025 and $1.0 million in 4Q2024. For both years ended December 31, 2025 and 2024, non-interest income totaled $3.6 million.

Non-interest Expense – Non-interest expense totaled $7.3 million in 4Q2025, compared to $7.4 million in 3Q2025 and $6.9 million in 4Q2024 The expense increase comparing 4Q2025 to 4Q2024 resulted primarily from increases in salaries and benefits and fees for professional services. For the year ended December 31, 2025, non-interest expense totaled $29.1 million, compared to $28.4 million for the year ended December 31, 2024, an increase of 2.5%.

Shareholders' Equity – As of December 31, 2025, shareholders' equity totaled $105.6 million, or 9.15% of total assets, compared to $98.6 million, or 8.96% of total assets, as of December 31, 2024. The increase in shareholders' equity during the year ended December 31, 2025 resulted primarily from earnings, net of dividends paid and repurchases of shares of the Company's common stock. In addition, shareholders' equity was positively impacted during the period by reductions in the Company's accumulated other comprehensive loss resulting from the maturity of lower yielding investment securities combined with purchases of securities at higher yields. The Company's ratio of tangible common equity to tangible assets was 8.56% as of December 31, 2025 compared to 8.33% as of December 31, 2024.

Cash Dividend – In 4Q2025, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in all previous quarters of 2025 and 4Q2024. For the year ended December 31, 2025, the Company declared cash dividends totaling $0.28 per share, compared to $0.22 per share for the year ended December 31, 2024.

Share Repurchases – During 4Q2025, the Company completed the repurchase of 88,000 shares of its common stock at a weighted average price of $13.93 per share. For the year ended December 31, 2025, repurchases totaled 128,000 shares at a weighted average price of $13.76 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded during 4Q2025 by an additional 1,000,000 shares. As of December 31, 2025, 1,784,813 shares remained available for repurchase under the program.

Regulatory Capital – During 4Q2025, 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 December 31, 2025, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.88%, its total capital ratio was 12.05%, and its Tier 1 leverage ratio was 9.03%.

Liquidity – As of December 31, 2025, 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, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity.

Banking Center Growth – During 4Q2025, the Company continued renovation of a banking center office in Daphne, Alabama that was purchased from another financial institution. This location is expected to serve as the Bank's initial deposit gathering facility in the Daphne/Mobile area. It is currently anticipated that the location will open to the public during the first half of 2026. In addition, during 4Q2025, the Company opened a new automated banking facility in Mountain Brook, Alabama.

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 the effects of any government shutdown; 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 effects of significant changes to the structure and operations of the federal government; 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; 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"); 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 DECEMBER 31, 2025 AND 2024

(Dollars in Thousands)

(Unaudited)

Three Months Ended

December 31, 2025

December 31, 2024

Average

Balance

Interest

Annualized

Yield/Rate %

Average

Balance

Interest

Annualized

Yield/Rate %

ASSETS

Interest-earning assets:

Loans

$869,308

$13,203

6.03 %

$811,125

$12,480

6.12 %

Investment securities

169,033

1,623

3.81 %

159,298

1,306

3.26 %

Federal Home Loan Bank stock

1,560

6.61 %

858

7.42 %

Federal funds sold and securities purchased under

reverse repurchase agreements

4,850

4.01 %

10,951

140

5.09 %

Interest-bearing deposits in banks

36,294

361

3.95 %

38,341

478

4.96 %

Total interest-earning assets

1,081,045

15,262

5.60 %

1,020,573

14,420

5.62 %

Noninterest-earning assets

64,431

65,498

Total assets

$1,145,476

$1,086,071

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits:

Demand deposits

$199,043

395

0.79 %

$207,890

538

1.03 %

Money market/savings deposits

310,771

2,059

2.63 %

255,480

1,694

2.64 %

Time deposits

335,090

3,088

3.66 %

346,412

3,299

3.79 %

Total interest-bearing deposits

844,904

5,542

2.60 %

809,782

5,531

2.72 %

Noninterest-bearing demand deposits

158,081

—

155,034

—

Total deposits

1,002,985

5,542

2.19 %

964,816

5,531

2.28 %

Borrowings

27,849

297

4.23 %

12,493

141

4.49 %

Total funding liabilities

1,030,834

5,839

2.25 %

977,309

5,672

2.31 %

Other noninterest-bearing liabilities

9,575

10,144

Shareholders' equity

105,067

98,618

Total liabilities and shareholders' equity

$1,145,476

$1,086,071

Net interest income

$9,423

$8,748

Net interest margin

3.46 %

3.41 %

FIRST US BANCSHARES, INC. AND SUBSIDIARY

NET INTEREST MARGIN

YEAR ENDED DECEMBER 31, 2025 AND 2024

(Dollars in Thousands)

(Unaudited)

Year Ended

December 31, 2025

December 31, 2024

Average

Balance

Interest

Annualized

Yield/Rate %

Average

Balance

Interest

Annualized

Yield/Rate %

ASSETS

Interest-earning assets:

Loans

$856,035

$51,846

6.06 %

$818,524

$51,469

6.29 %

Investment securities

160,272

5,761

3.59 %

145,523

4,400

3.02 %

Federal Home Loan Bank stock

1,388

6.99 %

891

7.74 %

Federal funds sold and securities purchased under

reverse repurchase agreements

4,850

209

4.31 %

6,930

366

5.28 %

Interest-bearing deposits in banks

34,859

1,502

4.31 %

36,399

1,956

5.37 %

Total interest-earning assets

1,057,404

59,415

5.62 %

1,008,267

58,260

5.78 %

Noninterest-earning assets

64,133

65,931

Total assets

$1,121,537

$1,074,198

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits:

Demand deposits

$202,661

1,712

0.84 %

$205,581

1,779

0.87 %

Money market/savings deposits

285,624

7,413

2.60 %

251,772

6,856

2.72 %

Time deposits

341,986

11,779

3.44 %

346,541

12,914

3.73 %

Total interest-bearing deposits

830,271

20,904

2.52 %

803,894

21,549

2.68 %

Noninterest-bearing demand deposits

155,320

—

152,252

—

Total deposits

985,591

20,904

2.12 %

956,146

21,549

2.25 %

Borrowings

24,180

1,053

4.35 %

13,404

562

4.19 %

Total funding liabilities

1,009,771

21,957

2.17 %

969,550

22,111

2.28 %

Other noninterest-bearing liabilities

9,534

9,898

Shareholders' equity

102,232

94,750

Total liabilities and shareholders' equity

$1,121,537

$1,074,198

Net interest income

$37,458

$36,149

Net interest margin

3.54 %

3.59 %

FIRST US BANCSHARES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands, Except Share and Per Share Data)

December 31,

2025

2024

(Unaudited)

ASSETS

Cash and due from banks

9,401

10,633

Interest-bearing deposits in banks

64,146

36,583

Total cash and cash equivalents

73,547

47,216

Federal funds sold and securities purchased under reverse repurchase agreements

4,850

5,727

Investment securities available-for-sale, at fair value (amortized cost $169,037 and

$174,597; net of allowance for credit losses of $- and $-)

168,075

167,888

Investment securities held-to-maturity, at amortized cost, net of allowance for credit

losses of $- and $-, (fair value 2025 - $449, 2024 - $642)

465

682

Federal Home Loan Bank stock, at cost

791

1,256

Loans and leases held for investment

853,018

823,039

Less allowance for credit losses on loans and leases

10,704

10,184

Net loans and leases held for investment

842,314

812,855

Premises and equipment, net of accumulated depreciation

26,284

24,803

Cash surrender value of bank-owned life insurance

17,378

17,056

Accrued interest receivable

3,916

3,588

Goodwill and core deposit intangible, net

7,435

7,484

Other real estate owned

256

1,509

Other assets

9,474

11,022

Total assets

1,154,785

1,101,086

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Non-interest-bearing

153,809

155,945

Interest-bearing

874,153

816,612

Total deposits

1,027,962

972,557

Accrued interest expense

2,526

1,751

Other liabilities

7,704

7,282

Short-term borrowings

10,000

Long-term borrowings

10,945

10,872

Total liabilities

1,049,137

1,002,462

Shareholders' equity:

Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,947,303 and

7,840,348 shares issued, respectively; 5,699,696 and 5,696,171 shares outstanding,

respectively

Additional paid-in capital

16,005

15,540

Accumulated other comprehensive loss, net of tax

(780)

(4,344)

Retained earnings

121,249

116,865

Less treasury stock: 2,247,607 and 2,144,177 shares at cost, respectively

(30,905)

(29,515)

Total shareholders' equity

105,648

98,624

Total liabilities and shareholders' equity

1,154,785

1,101,086

FIRST US BANCSHARES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

(Unaudited)

Interest income:

Interest and fees on loans

13,203

12,480

51,846

51,469

Interest on investment securities

1,623

1,306

5,761

4,400

Interest on deposits in banks

361

478

1,502

1,956

Other

156

306

435

Total interest income

15,262

14,420

59,415

58,260

Interest expense:

Interest on deposits

5,542

5,531

20,904

21,549

Interest on borrowings

297

141

1,053

562

Total interest expense

5,839

5,672

21,957

22,111

Net interest income

9,423

8,748

37,458

36,149

Provision for credit losses

220

470

4,031

622

Net interest income after provision for credit losses

9,203

8,278

33,427

35,527

Non-interest income:

Service and other charges on deposit accounts

285

323

1,140

1,232

Lease income

267

263

1,082

1,033

Other income, net

443

396

1,357

1,318

Total non-interest income

995

982

3,579

3,583

Non-interest expense:

Salaries and employee benefits

3,833

3,645

15,273

15,460

Net occupancy and equipment

997

955

3,796

3,761

Computer services

443

351

1,707

1,687

Insurance expense and assessments

311

357

1,409

1,510

Fees for professional services

301

180

1,349

1,184

Other expense

1,386

1,459

5,536

4,754

Total non-interest expense

7,271

6,947

29,070

28,356

Income before income taxes

2,927

2,313

7,936

10,754

Provision for income taxes

798

599

1,944

2,584

Net income

2,129

1,714

5,992

8,170

Basic net income per share

0.37

0.30

1.03

1.40

Diluted net income per share

0.36

0.29

1.00

1.33

Dividends per share

0.07

0.28

0.22

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 December 31, 2025 and December 31, 2024.

December 31,

2025

December 31,

2024

(Dollars in Thousands)

(Unaudited)

Liquidity from cash, federal funds sold and securities purchased under reverse repurchase

agreements:

Cash and cash equivalents

73,547

47,216

Federal funds sold and securities purchased under reverse repurchase agreements

4,850

5,727

Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase

agreements

78,397

52,943

Liquidity from pledgable investment securities:

Investment securities available-for sale, at fair value

168,075

167,888

Investment securities held-to-maturity, at amortized cost

465

682

Less: securities pledged

(58,497)

(72,110)

Less: estimated collateral value discounts

(10,671)

(10,164)

Total liquidity from pledgable investment securities

99,372

86,296

Liquidity from unused lendable collateral (loans) at FHLB

30,504

45,388

Liquidity from unused lendable collateral (loans and securities) at FRB

210,921

165,061

Unsecured lines of credit with banks

48,000

Total readily available liquidity

467,194

397,688

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 FHLB and 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 unused lendable collateral value at the FHLB presented in the table represents only the amount immediately available to the Company from loans already pledged by the Company to the FHLB as of each consolidated balance sheet date presented. As of December 31, 2025 and December 31, 2024, the Company's total remaining credit availability with the FHLB was $324.1 million and $319.9 million, respectively, subject to the pledging of additional collateral which may include eligible investment securities and loans. In addition, the Company has access to additional sources of liquidity that generally could be obtained over a period of time, including access to unsecured brokered deposits through the wholesale funding markets. Management believes the Company's on-balance sheet and other readily available liquidity provide strong indicators of the Company's ability to fund obligations in a stressed liquidity environment.

Excluding wholesale brokered deposits, as of December 31, 2025, the Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.0 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 $218.0 million, or 21.2% of total deposits, as of December 31, 2025. As of December 31, 2024, estimated uninsured deposits totaled $216.8 million, or 22.3% 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 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

Year Ended

2025

2024

2025

2024

December

31,

September

30,

June

30,

March

31,

December

31,

December

31,

December

31,

(Dollars in Thousands)

(Unaudited Reconciliation)

Net income

$2,129

$1,936

$155

$1,772

$1,714

$5,992

$8,170

Add: Provision for income taxes

798

583

554

599

1,944

2,584

Add: Provision for credit losses

220

566

2,717

528

470

4,031

622

Pre-tax pre-provision net

revenue

$3,147

$3,085

$2,881

$2,854

$2,783

$11,967

$11,376

Average assets

$1,145,476

$1,130,259

$1,122,342

$1,087,338

$1,086,071

$1,121,537

$1,074,198

PPNR as a percentage of average

assets (annualized)

1.09 %

1.08 %

1.03 %

1.06 %

1.02 %

1.07 %

1.06 %

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

Year Ended

2025

2024

2025

2024

December

31,

September

30,

June

30,

March

31,

December

31,

December

31,

December

31,

(Dollars in Thousands, Except Per Share Data)

(Unaudited Reconciliation)

TANGIBLE BALANCES

Total assets

$1,154,785

$11,147,175

$1,143,379

$1,126,967

$1,101,086

Less: Goodwill

7,435

Less: Core deposit intangible

—

Tangible assets

(a)

$1,147,350

$11,139,740

$1,135,932

$1,119,502

$1,093,602

Total shareholders' equity

$105,648

$104,238

$101,892

$101,231

$98,624

Less: Goodwill

7,435

Less: Core deposit intangible

—

Tangible common equity

(b)

$98,213

$96,803

$94,445

$93,766

$91,140

Average shareholders' equity

$105,067

$102,737

$101,323

$99,734

$98,618

$102,232

$94,750

Less: Average goodwill

7,435

Less: Average core deposit

intangible

—

101

Average tangible shareholders'

equity

(c)

$97,632

$95,298

$93,867

$92,260

$91,125

$94,781

$87,214

Net income

(d)

$2,129

$1,936

$155

$1,772

$1,714

$5,992

$8,170

Common shares outstanding (in

thousands)

(e)

5,700

5,765

5,755

5,739

5,696

TANGIBLE MEASURES

Tangible book value per common

(b)/(e)

$17.23

$16.79

$16.41

$16.34

$16.00

Tangible common equity to

tangible assets

(b)/(a)

8.56 %

8.49 %

8.31 %

8.38 %

8.33 %

Return on average tangible

common equity (annualized)

(1)

8.65 %

8.06 %

0.66 %

7.79 %

7.49 %

6.32 %

9.37 %

(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

SOURCE First US Bancshares, Inc.