#USA #Birmingham #First US Bancshares #FUSB #First US Bank

First US Bancshares, Inc. Reports Second Quarter 2025 Results

First US Bancshares, Inc. (Nasdaq: FUSB) recently disclosed its financial results for the second quarter of 2025, detailing a significant decrease in net income as compared to previous quarters. The company reported a net income of $0.2 million, equivalent to $0.03 per diluted share, for the quarter ending June 30, 2025.

This marks a stark decline from a net income of $1.8 million, or $0.29 per diluted share, from the first quarter of 2025, as well as from $2.1 million, or $0.34 per diluted share, recorded for the same period last year. The downturn is primarily attributed to the rise in the company's provision for credit losses stemming from loans and leases.

Financial Highlights

In examining key financial metrics for the quarter:

• - Interest Income increased to $14.854 million compared to $14.546 million in the same quarter last year.
• - Net Interest Income was reported at $9.476 million, showing a growth from the previous quarter.
• - However, the Provision for Credit Losses surged to $2.717 million, highlighting the company's cautious stance due to increased lending risks.

In the first half of the year, net income totaled $1.9 million, down from $4.2 million in the prior year's first half. This decline is concerning for shareholders as the growth in lending led to heightened credit provisions.

Insights from Leadership

James F. House, President and CEO of First US Bancshares, commented on the results, stating, "The significant provision for credit losses directly correlates with the increase in our indirect consumer lending, which has exhibited some strain. However, the increase in net interest margin and total loans gives us hope for recovery moving forward."

During this quarter, total loans saw a growth of approximately 2.7%, reflecting the increasing demand, particularly in the consumer loan sector. Indirect loans, targeting higher credit-lending profiles, accounted for the majority of this growth, with an average credit score of 798 for new loans issued.

Operational Developments

In addition to these financial results, First US Bancshares has been working on expanding its operational footprint by renovating a banking center in Daphne, Alabama. This facility, expected to open in 2026, will serve as an initial base for deposit gathering in the region.

The results reflect a challenging yet strategically significant quarter for First US Bancshares, navigating through increased credit loss provisions while still managing to expand its loan offerings. The focus now will be on stabilizing returns and managing risks effectively moving forward, as the company aims to strengthen its presence in the financial services sector.