First US Bancshares, Inc. Reports First Quarter 2026 Results

BIRMINGHAM, Ala., April 29, 2026 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.9 million, or $0.33 per diluted share, for the quarter ended March 31, 2026 ("1Q2026"), compared to $2.1 million, or $0.36 per diluted share, for the quarter ended December 31, 2025 ("4Q2025") and $1.8 million, or $0.29 per diluted share, for the quarter ended March 31, 2025 ("1Q2025").

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

Quarter Ended

2026

2025

March

31,

December

31,

September

30,

June

30,

March

31,

Results of Operations: (Dollars in Thousands)

(Unaudited)

Interest income

14,940

15,262

15,281

14,854

14,018

Interest expense

5,725

5,839

5,619

5,378

5,121

Net interest income

9,215

9,423

9,662

9,476

8,897

Provision for credit losses

254

220

566

2,717

528

Net interest income after provision for credit losses

8,961

9,203

9,096

6,759

8,369

Non-interest income

840

995

860

849

875

Non-interest expense

7,341

7,271

7,437

7,444

6,918

Income before income taxes

2,460

2,927

2,519

164

2,326

Provision for income taxes

515

798

583

554

Net income

1,945

2,129

1,936

155

1,772

Per Share Data:

Basic net income per share

0.34

0.37

0.33

0.03

0.30

Diluted net income per share

0.33

0.36

0.32

0.03

0.29

Dividends declared

0.07

Key Measures (Period End):

Total assets

1,165,236

1,154,785

1,147,175

1,143,379

1,126,967

Tangible assets (1)

1,157,801

1,147,350

1,139,740

1,135,932

1,119,502

Total loans

843,697

853,018

867,520

871,431

848,335

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

10,536

10,704

10,700

11,388

10,405

Investment securities, net

181,545

168,540

164,493

157,137

161,946

Total deposits

1,038,849

1,027,962

1,002,472

986,846

961,952

Short-term borrowings

—

20,000

35,000

45,000

Long-term borrowings

10,963

10,945

10,927

10,909

10,890

Total shareholders' equity

104,634

105,648

104,238

101,892

101,231

Tangible common equity (1)

97,199

98,213

96,803

94,445

93,766

Book value per common share

18.67

18.53

18.08

17.70

17.64

Tangible book value per common share (1)

17.34

17.23

16.79

16.41

16.34

Common shares outstanding

5,604,123

5,699,696

5,765,137

5,755,064

5,739,286

Key Ratios:

Return on average assets (annualized)

0.67

0.74

0.68

0.06

0.66

Return on average common equity (annualized)

7.46

8.04

7.48

0.61

7.21

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

8.02

8.65

8.06

0.66

7.79

Pre-tax pre-provision net revenue to average assets (annualized) (1)

0.94

1.09

1.08

1.03

1.06

Net interest margin

3.37

3.46

3.60

3.59

3.53

Efficiency ratio (2)

73.0

69.8

70.7

72.1

70.8

Total loans to deposits

81.2

83.0

86.5

88.3

88.2

Total loans to assets

72.4

73.9

75.6

76.2

75.3

Common equity to total assets

8.98

9.15

9.09

8.91

8.98

Tangible common equity to tangible assets (1)

8.40

8.56

8.49

8.31

8.38

Tier 1 leverage ratio (3)

8.85

9.03

9.19

9.23

9.55

ACL on loans and leases as % of total loans

1.25

1.23

1.31

1.23

Nonperforming assets as % of total assets

0.16

0.14

0.19

0.33

0.44

Net charge-offs as a percentage of average loans (annualized)

0.23

0.08

0.61

0.79

0.13

(1) Refer to the non-GAAP reconciliations beginning on page 8.

(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 a solid start to the year," stated James F. House, President and CEO of the Company. "First quarter 2026 diluted earnings per share improved by 13.8% compared to the same quarter of 2025. Although we saw a modest decline in total loan volume during the quarter, some of which was seasonal, we experienced growth in our core deposit franchise," continued Mr. House. "While the year is certainly off to a volatile start from a geopolitical and economic standpoint, we continue to believe that the Company's balance sheet is well positioned to thrive in multiple scenarios."

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

March

31,

December

31,

September

30,

June

30,

March

31,

(Dollars in Thousands)

(Unaudited)

Real estate loans:

Construction, land development and other land loans

$27,236

$32,618

$38,560

$48,101

$58,572

Secured by 1-4 family residential properties

65,460

66,996

67,620

67,587

68,523

Secured by multi-family residential properties

124,826

117,769

112,763

118,807

106,374

Secured by non-residential commercial real estate

189,408

200,699

211,400

215,035

214,065

Commercial and industrial loans ("C&I")

46,665

48,360

46,562

40,986

45,166

Consumer loans:

Direct

4,362

4,844

4,999

4,836

4,610

Indirect

385,740

381,732

385,616

376,079

351,025

Total loans and leases held for investment

843,697

853,018

867,520

871,431

848,335

Allowance for credit losses on loans and leases

10,536

10,704

10,700

11,388

10,405

Net loans and leases held for investment

$833,161

$842,314

$856,820

$860,043

$837,930

Total loans decreased by $9.3 million, or 1.1%, in 1Q2026, as growth in the multi-family residential real estate and indirect categories was offset by decreases primarily in the construction, non-residential commercial real estate and C&I categories. 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 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 growth in the indirect category accelerated in the latter part of 1Q2026, consistent with typical seasonal trends. 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 1Q2026 was 797, while the weighted average credit score for the entire portfolio was 783. While total loans decreased during 1Q2026, average loan balances remained higher comparing 1Q2026 to 1Q2025, increasing by $26.7 million, or 3.2%.

Deposits – Total deposits increased by $10.9 million, or 1.1%, during 1Q2026, due primarily to an increase in interest-bearing demand deposits of $28.4 million, partially offset by a $4.7 million decrease in noninterest-bearing deposits and a $12.8 million decrease in time deposits. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $853.8 million, or 82.2% of total deposits, as of March 31, 2026, compared to $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on deposits totaled 2.18% during 1Q2026, compared to 2.19% during 4Q2025 and 2.07% during 1Q2025. In the current environment, significant competitive pressure remains to acquire and maintain deposit balances.

Cash and Investment Securities – As of March 31, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $85.4 million, or 7.3% 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 $181.5 million as of March 31, 2026, compared to $168.5 million as of December 31, 2025. During 1Q2026, the Company purchased $20.5 million 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 3.89% during 1Q2026, compared to 3.81% during 4Q2025 and 3.44% during 1Q2025. As of March 31, 2026, the expected average life of securities in the investment portfolio was 3.8 years compared to 3.7 years as of December 31, 2025.

Net Interest Income and Margin – Net interest income in 1Q2026 decreased by $0.2 million, or 2.2%, compared to 4Q2025 and increased by $0.3 million, or 3.6%, compared to 1Q2025. Net interest margin was 3.37% for 1Q2026, compared to 3.46% for 4Q2025 and 3.53% for 1Q2025. The decrease in net interest margin compared to 4Q2025 and 1Q2025 resulted primarily from yield reductions on loans that occurred following the reduction of the Federal Funds rate during the latter part of 2025.

Asset Quality – Nonperforming assets, including loans in non-accrual status and other real estate owned, totaled $1.8 million as of March 31, 2026, an increase from $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets increased to 0.16% as of March 31, 2026, compared to 0.14% as of December 31, 2025. Net charge-offs as a percentage of average loans totaled 0.23% in 1Q2026, compared to 0.08% during 4Q2025 and 0.13% during 1Q2025. The increase in net charge-offs comparing 1Q2026 to both 4Q2025 and 1Q2025 was due to a partial charge-off of one individually evaluated commercial loan of $48 thousand during 1Q2026, as well as an increase in charge-offs associated with the indirect portfolio. The amount charged off associated with the individually evaluated loan was fully reserved within the Company's allowance for credit losses ("ACL") on loans and leases as of December 31, 2025.

Provision for Credit Losses – During 1Q2026, the Company recorded a provision for credit losses of $0.3 million, compared to $0.2 million in 4Q2025 and $0.5 million in 1Q2025. As of March 31, 2026, the Company's ACL on loans and leases as a percentage of total loans was 1.25%, consistent with December 31, 2025. While management believes that the ACL is adequate to absorb credit losses within the Company's loan portfolio, inherent uncertainty exists pertaining to the ultimate impact on the portfolio of both geopolitical and economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability.

Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $2.7 million in 1Q2026, compared to $3.1 million in 4Q2025 and $2.9 million in 1Q2025. As a percentage of average assets, PPNR totaled 0.94% in 1Q2026, compared to 1.09% in 4Q2025 and 1.06% in 1Q2025. Refer to the non-GAAP reconciliation of PPNR to net income beginning on page 9.

Non-interest Income – Non-interest income totaled $0.8 million in 1Q2026, compared to $1.0 million in 4Q2025 and $0.9 million in 1Q2025. The reduction in non-interest income compared to 4Q2025 resulted primarily from fees on customer-related interest rate swaps that were earned in 4Q2025 and not repeated in 1Q2026.

Non-interest Expense – Non-interest expense totaled $7.3 million in both 1Q2026 and 4Q2025, compared to $6.9 million in 1Q2025. The expense increase comparing 1Q2026 to 1Q2025 resulted from increases in salaries and benefits, fees for professional services, and occupancy and equipment expenses.

Shareholders' Equity – As of March 31, 2026, shareholders' equity totaled $104.6 million, or 9.0% of total assets, compared to $105.6 million, or 9.1% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders' equity during 1Q2026, the increase was fully offset by share repurchases during the quarter, combined with an increase in the Company's accumulated other comprehensive loss resulting from the increasing interest rate environment during the quarter. The Company's ratio of tangible common equity to tangible assets was 8.40% as of March 31, 2026 compared to 8.56% as of December 31, 2025.

Cash Dividend – In 1Q2026, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid during all four quarters of 2025.

Share Repurchases – During 1Q2026, the Company completed the repurchase of 146,500 shares of its common stock at a weighted average price of $15.03 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded during 4Q2025. As of March 31, 2026, 1,638,313 shares remained available for repurchase under the program.

Regulatory Capital – During 1Q2026, 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 March 31, 2026, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.85%, its total capital ratio was 11.99%, and its Tier 1 leverage ratio was 8.85%.

Liquidity – As of March 31, 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, 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 1Q2026, the Company neared completion on 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. The location is expected to open to the public during the second quarter of 2026.

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 MARCH 31, 2026 AND 2025

(Dollars in Thousands)

(Unaudited)

Three Months Ended

March 31, 2026

March 31, 2025

Average

Balance

Interest

Annualized

Yield/Rate %

Average

Balance

Interest

Annualized

Yield/Rate %

ASSETS

Interest-earning assets:

Loans

$851,224

$12,491

5.95 %

$824,531

$12,241

6.02 %

Investment securities

175,707

1,687

3.89 %

166,241

1,412

3.44 %

Federal Home Loan Bank stock

794

6.13 %

1,341

7.26 %

Federal funds sold and securities purchased under

reverse repurchase agreements

15,706

152

3.92 %

4,850

4.43 %

Interest-bearing deposits in banks

66,066

598

3.67 %

26,220

288

4.45 %

Total interest-earning assets

1,109,497

14,940

5.46 %

1,023,183

14,018

5.56 %

Noninterest-earning assets

63,893

64,155

Total assets

$1,173,390

$1,087,338

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits:

Demand deposits

$210,675

399

0.77 %

$212,130

493

0.94 %

Money market/savings deposits

330,507

2,128

2.61 %

257,046

1,544

2.44 %

Time deposits

353,705

3,083

3.53 %

330,241

2,832

3.48 %

Total interest-bearing deposits

894,887

5,610

2.54 %

799,417

4,869

2.47 %

Noninterest-bearing demand deposits

150,438

—

155,294

—

Total deposits

1,045,325

5,610

2.18 %

954,711

4,869

2.07 %

Borrowings

10,955

115

4.26 %

23,404

252

4.37 %

Total funding liabilities

1,056,280

5,725

2.20 %

978,115

5,121

2.12 %

Other noninterest-bearing liabilities

11,320

9,489

Shareholders' equity

105,790

99,734

Total liabilities and shareholders' equity

$1,173,390

$1,087,338

Net interest income

$9,215

$8,897

Net interest margin

3.37 %

3.53 %

FIRST US BANCSHARES, INC. AND SUBSIDIARY

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

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

March 31,

December 31,

2026

2025

(Unaudited)

ASSETS

Cash and due from banks

9,742

9,401

Interest-bearing deposits in banks

56,844

64,146

Total cash and cash equivalents

66,586

73,547

Federal funds sold and securities purchased under reverse repurchase agreements

18,850

4,850

Investment securities available-for-sale, at fair value (amortized cost $183,160 and

$169,037; net of allowance for credit losses of $- and $-)

181,109

168,075

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

losses of $- and $-, (fair value 2026 - $419, 2025 - $449)

436

465

Federal Home Loan Bank stock, at cost

829

791

Loans and leases held for investment

843,697

853,018

Less allowance for credit losses on loans and leases

10,536

10,704

Net loans and leases held for investment

833,161

842,314

Premises and equipment, net of accumulated depreciation

26,262

26,284

Cash surrender value of bank-owned life insurance

17,466

17,378

Accrued interest receivable

3,963

3,916

Goodwill and core deposit intangible, net

7,435

Other real estate owned

215

256

Other assets

8,924

9,474

Total assets

1,165,236

1,154,785

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Non-interest-bearing

149,079

153,809

Interest-bearing

889,770

874,153

Total deposits

1,038,849

1,027,962

Accrued interest expense

2,780

2,526

Other liabilities

8,010

7,704

Long-term borrowings

10,963

10,945

Total liabilities

1,060,602

1,049,137

Shareholders' equity:

Common stock, par value $0.01 per share, 10,000,000 shares authorized; 8,007,006 and

7,947,303 shares issued, respectively; 5,604,123 and 5,699,696 shares outstanding,

respectively

Additional paid-in capital

16,242

16,005

Accumulated other comprehensive loss, net of tax

(1,263)

(780)

Retained earnings

122,799

121,249

Less treasury stock: 2,402,883 and 2,247,607 shares at cost, respectively

(33,224)

(30,905)

Total shareholders' equity

104,634

105,648

Total liabilities and shareholders' equity

1,165,236

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

March 31,

2026

2025

(Unaudited)

Interest income:

Interest and fees on loans

12,491

12,241

Interest on investment securities

1,687

1,412

Interest on deposits in banks

598

288

Other

164

Total interest income

14,940

14,018

Interest expense:

Interest on deposits

5,610

4,869

Interest on borrowings

115

252

Total interest expense

5,725

5,121

Net interest income

9,215

8,897

Provision for credit losses

254

528

Net interest income after provision for credit losses

8,961

8,369

Non-interest income:

Service and other charges on deposit accounts

283

288

Lease income

269

284

Other income, net

288

303

Total non-interest income

840

875

Non-interest expense:

Salaries and employee benefits

3,814

3,736

Net occupancy and equipment

971

875

Computer services

337

412

Insurance expense and assessments

415

384

Fees for professional services

328

215

Other expense

1,476

1,296

Total non-interest expense

7,341

6,918

Income before income taxes

2,460

2,326

Provision for income taxes

515

554

Net income

1,945

1,772

Basic net income per share

0.34

0.30

Diluted net income per share

0.33

0.29

Dividends per share

0.07

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 March 31, 2026 and December 31, 2025.

March 31,

2026

December 31,

2025

(Dollars in Thousands)

(Unaudited)

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

agreements:

Cash and cash equivalents

66,586

73,547

Federal funds sold and securities purchased under reverse repurchase agreements

18,850

4,850

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

agreements

85,436

78,397

Liquidity from pledgable investment securities:

Investment securities available-for sale, at fair value

181,109

168,075

Investment securities held-to-maturity, at amortized cost

436

465

Less: securities pledged

(66,105)

(58,497)

Less: estimated collateral value discounts

(10,652)

(10,671)

Total liquidity from pledgable investment securities

104,788

99,372

Liquidity from unused lendable collateral (loans) at FHLB

30,183

30,504

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

212,113

210,921

Unsecured lines of credit with banks

48,000

Total readily available liquidity

480,520

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 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.

Excluding wholesale brokered deposits, as of March 31, 2026, the Company had approximately 27 thousand deposit accounts with an average balance of approximately $32.8 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 $231.0 million, or 22.1% of total deposits, as of March 31, 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 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

2026

2025

March

31,

December

31,

September

30,

June

30,

March

31,

(Dollars in Thousands)

(Unaudited Reconciliation)

Net income

$1,945

$2,129

$1,936

$155

$1,772

Add: Provision for income taxes

515

798

583

554

Add: Provision for credit losses

254

220

566

2,717

528

Pre-tax pre-provision net revenue

$2,714

$3,147

$3,085

$2,881

$2,854

Average assets

$1,173,390

$1,145,476

$1,130,259

$1,122,342

$1,087,338

PPNR as a percentage of average assets (annualized)

0.94 %

1.09 %

1.08 %

1.03 %

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

2026

2025

March

31,

December

31,

September

30,

June

30,

March

31,

(Dollars in Thousands, Except Per Share Data)

(Unaudited Reconciliation)

TANGIBLE BALANCES

Total assets

$1,165,236

$1,154,785

$11,147,175

$1,143,379

$1,126,967

Less: Goodwill

7,435

Less: Core deposit intangible

—

Tangible assets

(a)

$1,157,801

$1,147,350

$11,139,740

$1,135,932

$1,119,502

Total shareholders' equity

$104,634

$105,648

$104,238

$101,892

$101,231

Less: Goodwill

7,435

Less: Core deposit intangible

—

Tangible common equity

(b)

$97,199

$98,213

$96,803

$94,445

$93,766

Average shareholders' equity

$105,790

$105,067

$102,737

$101,323

$99,734

Less: Average goodwill

7,435

Less: Average core deposit intangible

—

Average tangible shareholders' equity

(c)

$98,355

$97,632

$95,298

$93,867

$92,260

Net income

(d)

$1,945

$2,129

$1,936

$155

$1,772

Common shares outstanding (in thousands)

(e)

5,604

5,700

5,765

5,755

5,739

TANGIBLE MEASURES

Tangible book value per common share

(b)/(e)

$17.34

$17.23

$16.79

$16.41

$16.34

Tangible common equity to tangible assets

(b)/(a)

8.40 %

8.56 %

8.49 %

8.31 %

8.38 %

Return on average tangible common equity (annualized)

(1)

8.02 %

8.65 %

8.06 %

0.66 %

7.79 %

(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.