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First US Bancshares, Inc. Financial Performance Review for Q3 2026

First US Bancshares, Inc. (NASDAQ: FUSB), the parent company of First US Bank, has announced its third-quarter results for 2026, revealing a robust growth trajectory. The company recorded a net income of $2.0 million for the quarter ending September 30, translating to a diluted earnings per share (EPS) of $0.36. This is a noticeable increase from $1.8 million in net income and $0.31 per diluted share in the previous quarter and $1.9 million and $0.32 per diluted share in the same quarter last year.

The year-to-date performance has been equally impressive, with net income reaching $5.7 million, or $1.00 per diluted share, compared to $3.9 million and $0.64 per diluted share in the same period last year. The company’s focus on improving its financial footing has shown unequivocally in these numbers, underpinned by strategic lending and prudent financial management. Among the key highlights:

• - Interest Income Growth: The total interest income for Q3 2026 stood at $15.1 million, showing a slight increase from the previous quarters, indicating sustained lending activity. The company's net interest margin also improved to 3.66%, reflecting increased efficiency in generating earnings from its loans and investments.
• - Loan Portfolio Management: Despite a slight decrease in total loans of $15.6 million during Q3, significant growth was noted in the indirect consumer loans sector, which rose by $13.1 million, demonstrating the company's focus on high-quality lending.
• - Asset and Deposit Stability: Total deposits rose to $1.015 billion, up $17.1 million or 1.7%, showcasing the bank's robust deposit-gathering capabilities. Non-interest-bearing deposits increased, signaling strong customer confidence.
• - Investor Confidence: The company continued its share repurchase program, having bought back 390,000 shares in the third quarter at an average price of $16.43. This program enhances shareholder value and signals management’s confidence in the company’s stock.
• - Effective Credit Loss Management: The allowance for credit losses increased slightly to 1.30% of total loans, which reflects proactive management of potential loan defaults.

CEO Commentary

James F. House, President and CEO, expressed satisfaction with the earnings growth and net interest margin expansion. He emphasized the successful share repurchase campaign and the overall strategic focus on high-quality lending and disciplined pricing strategies.

Market Outlook

Looking ahead, First US Bancshares plans to continue enhancing its customer base while maintaining discipline in its lending practices. The focus will be on capitalizing on opportunities within their existing markets, particularly in indirect lending where they have observed considerable growth. The banking center expansion strategy, including new office openings in Alabama, further underlines the company’s commitment to meeting customer needs and improving market presence.

Overall, Q3 2026 results serve as a testament to the company's solid performance and resilience, reinforcing its position in the competitive banking landscape. As the company continues to navigate the changing economic environment, stakeholders can anticipate continued focus on profitability and strategic growth.

Conclusion

With tangible results suggesting that First US Bancshares, Inc. is on a promising trajectory, investor confidence remains high. The consistent improvement in earnings and proactive credit management further solidifies its standing in the banking sector, heralding a positive outlook for the future.