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First US Bancshares, Inc. Fourth Quarter Report for 2024

Overview

In a recent announcement, First US Bancshares, Inc. disclosed their financial outcomes for the fourth quarter and the entire year of 2024. The company's net income for the last quarter reached $1.7 million, translating to $0.29 per diluted share, marking a slight decline from the previous quarter. Despite challenges in achieving loan growth, the bank showcased stability with its earnings remaining consistent with the prior year.

Financial Breakdown

Fourth Quarter Highlights:

• - Net Income: $1.7 million
• - Earnings per Share: $0.29
• - Return on Average Assets: 0.63%
• - Return on Average Common Equity: 6.92%

Yearly Performance:

For the full year of 2024, First US Bancshares recorded a total net income of $8.2 million, equating to $1.33 per diluted share. This figure represents a slight decrease from the $8.5 million reported in 2023, with earnings per share remaining unchanged.

Interest Income and Expenses

The total interest income for the fourth quarter amounted to $14.42 million. However, net interest income experienced a decrease in comparison to both the previous quarter and the same quarter last year. This downturn primarily reflects reductions in market interest rates and the federal funds rate, which affected the pricing of the company’s variable rate loans.

Key Financial Metrics:

• - Net Interest Margin: 3.41% for Q4 2024, a drop from both Q3 2024 and Q4 2023.
• - Total Assets: Reached $1.1 billion as of December 31, 2024.
• - Total Loans: Amounted to $823.0 million, indicating a modest increase in overall lending, driven chiefly by sectors such as construction and commercial real estate.

Non-Interest Income and Expenses

The bank reported non-interest income of approximately $982,000 for Q4 2024, a marginal increase from the previous quarter. Conversely, non-interest expenses slightly decreased to $6.9 million, mainly due to lower salaries and benefits following strategic staffing adjustments over previous years.

Loan Growth Insights

From the previous quarter, total loan volume increased by 2.5%, attributed largely to growth in specific categories, including construction loans and indirect consumer lending. Moreover, the year concluded with total loans only marginally higher relative to 2023.

Management Perspective

James F. House, President and CEO, highlighted that while 2024 posed challenges in terms of loan growth, the bank successfully maintained its earnings per diluted share. He also noted the company’s adaptability in enhancing yields through strategic investment portfolio acquisitions. As the bank approaches 2025, the leadership remains focused on capitalizing on market opportunities while reducing funding costs in response to shifts in interest rates.

Regulatory and Capital Position

First US Bancshares continues to uphold robust capital ratios, surpassing requirements to be classified as a well-capitalized institution. As of the end of 2024, the bank’s Tier 1 leverage ratio stood at 9.50%. Additionally, the bank has maintained a strong liquidity position, bolstered by a solid core deposit base and a strategic investment portfolio.

Conclusion

In conclusion, despite facing various challenges throughout the year, First US Bancshares, Inc. demonstrated resilience in its financial performance for 2024, with a strong commitment toward future growth and stability in operations. The bank remains optimistic as it transitions into the new fiscal year, intent on expanding its market presence while safeguarding shareholder interests.