THOMASVILLE, Ala., Oct. 27, 2016 (GLOBE NEWSWIRE) -- First US Bancshares, Inc. (formerly known as United Security Bancshares, Inc.) (Nasdaq:FUSB) (the “Company”) today reported net income of $0.6 million, or $0.09 per diluted share, for the quarter ended September 30, 2016 and $1.3 million, or $0.21 per diluted share, for the nine months ended September 30, 2016. The results represent an increase of $0.02 per diluted share compared to the prior quarter. Compared to the three months ended September 30, 2015, diluted earnings per share were unchanged.
Financial Highlights
Company Name Change
On October 11, 2016, the Company’s corporate name was changed to First US Bancshares, Inc. to more closely align the Company’s name with the name of the Bank. Also, beginning on October 11, 2016, the Company’s common stock began trading under a new ticker symbol, “FUSB,” on the Nasdaq Capital Market. Outstanding certificates for shares of the Company’s common stock acquired prior to the name and ticker symbol change remain valid and need not be exchanged.
“We are pleased to report another quarter of loan growth and asset quality improvement, as well as growth in earnings,” stated James F. House, President and Chief Executive Officer of the Company. “The third quarter represented our fourth consecutive quarter of loan growth, and that growth is beginning to translate into higher levels of revenue. Pre-provision net interest income was significantly stronger this quarter compared to both the previous quarter and the third quarter of 2015. This is directly attributable to the loan growth we’ve experienced. We remain focused on growing the loan portfolio with quality loans that fit our credit standards. The alignment of the name of our company with the Bank’s name has been well received, and we believe it further enhances our brand in the communities that we serve,” continued Mr. House.
Results of Operations
“Although we are pleased with the loan growth we have experienced, the earnings environment remains challenging,” continued Mr. House. “The Company’s net income has been significantly impacted by increases in the provision for loan losses, which is to be expected during periods of significant loan growth. As we move forward, we expect the lending environment for high quality loans to continue to be very competitive. We continue to make enhancements to our technology and customer service platforms in an effort to ensure that our footing is solid for future growth opportunities.”
Balance Sheet Management
About First US Bancshares, Inc.
First US Bancshares, Inc. (known as United Security Bancshares, Inc. prior to October 11, 2016) is a bank holding company that operates banking offices in Alabama through First US Bank. In addition, the Company’s operations include Acceptance Loan Company, Inc., a consumer loan company, and FUSB Reinsurance, Inc., an underwriter of credit life and credit accident and health insurance policies sold to the Bank’s and ALC’s consumer loan customers. Effective October 11, 2016, 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 are identified in the public filings made by the Company with the Securities and Exchange Commission, 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. Specifically, with respect to statements relating to loan demand, growth and earnings potential, geographic expansion and the adequacy of the allowance for loan losses for the Company, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy generally and in the Bank’s and ALC’s service areas, the availability of quality loans in the Bank’s and ALC’s service areas, the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets and collateral values. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
FIRST US BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
(Previously Known as United Security Bancshares, Inc. and Subsidiaries) | |||||||||||||||||||||
SELECTED FINANCIAL DATA – LINKED QUARTERS | |||||||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||
Quarter Ended (Unaudited) | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||
Results of Operations: | |||||||||||||||||||||
Interest income | $ | 7,760 | $ | 7,478 | $ | 7,196 | $ | 7,513 | $ | 7,328 | |||||||||||
Interest expense | 587 | 561 | 535 | 549 | 561 | ||||||||||||||||
Net interest income | 7,173 | 6,917 | 6,661 | 6,964 | 6,767 | ||||||||||||||||
Provision (reduction in reserve) for loan losses | 680 | 536 | 167 | 415 | (78 | ) | |||||||||||||||
Net interest income after provision (reduction in reserve) for loan losses | 6,493 | 6,381 | 6,494 | 6,549 | 6,845 | ||||||||||||||||
Non-interest income | 1,567 | 1,480 | 989 | 1,176 | 996 | ||||||||||||||||
Non-interest expense | 7,348 | 7,255 | 7,066 | 7,203 | 7,090 | ||||||||||||||||
Income before income taxes | 712 | 606 | 417 | 522 | 751 | ||||||||||||||||
Provision for income taxes | 162 | 144 | 100 | 81 | 207 | ||||||||||||||||
Net income | $ | 550 | $ | 462 | $ | 317 | $ | 441 | $ | 544 | |||||||||||
Per Share Data: | |||||||||||||||||||||
Basic net income per share | $ | 0.09 | $ | 0.08 | $ | 0.05 | $ | 0.07 | $ | 0.09 | |||||||||||
Diluted net income per share | $ | 0.09 | $ | 0.07 | $ | 0.05 | $ | 0.07 | $ | 0.09 | |||||||||||
Dividends declared | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | |||||||||||
Period-End Balance Sheet: | |||||||||||||||||||||
Total assets | $ | 600,307 | $ | 601,754 | $ | 575,582 | $ | 575,782 | $ | 548,537 | |||||||||||
Loans, net of allowance for loan losses | 317,121 | 298,901 | 263,975 | 255,432 | 237,715 | ||||||||||||||||
Allowance for loan losses | 3,668 | 3,591 | 3,375 | 3,781 | 4,345 | ||||||||||||||||
Investment securities, net | 209,566 | 213,165 | 231,466 | 231,202 | 239,009 | ||||||||||||||||
Total deposits | 493,828 | 495,618 | 485,537 | 479,258 | 463,266 | ||||||||||||||||
Long-term debt | 15,000 | 15,000 | 5,000 | 5,000 | - | ||||||||||||||||
Total shareholders’ equity | 78,848 | 78,525 | 77,727 | 77,030 | 76,283 | ||||||||||||||||
Key Ratios: | |||||||||||||||||||||
Return on average assets (annualized) | 0.36 | % | 0.31 | % | 0.22 | % | 0.31 | % | 0.39 | % | |||||||||||
Return on average equity (annualized) | 2.78 | % | 2.30 | % | 1.65 | % | 2.28 | % | 2.84 | % | |||||||||||
Loans to deposits | 64.2 | % | 60.3 | % | 54.4 | % | 53.3 | % | 51.3 | % | |||||||||||
Allowance for loan losses as % of loans | 1.14 | % | 1.19 | % | 1.26 | % | 1.46 | % | 1.80 | % | |||||||||||
Nonperforming assets as % of total assets | 1.28 | % | 1.33 | % | 1.50 | % | 1.59 | % | 1.98 | % | |||||||||||
FIRST US BANCSHARES, INC. AND SUBSIDIARIES | ||||||||
(Previously Known as United Security Bancshares, Inc. and Subsidiaries) | ||||||||
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars in Thousands, Except Share and Per Share Data) | ||||||||
September 30, | December 31, | |||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 7,618 | $ | 7,088 | ||||
Interest-bearing deposits in banks | 18,475 | 36,984 | ||||||
Total cash and cash equivalents | 26,093 | 44,072 | ||||||
Investment securities available-for-sale, at fair value | 181,251 | 198,843 | ||||||
Investment securities held-to-maturity, at amortized cost | 28,315 | 32,359 | ||||||
Federal Home Loan Bank stock, at cost | 1,368 | 1,025 | ||||||
Loans, net of allowance for loan losses of $3,668 and $3,781, respectively | 317,121 | 255,432 | ||||||
Premises and equipment, net | 15,481 | 12,084 | ||||||
Cash surrender value of bank-owned life insurance | 14,525 | 14,292 | ||||||
Accrued interest receivable | 1,847 | 1,833 | ||||||
Other real estate owned | 5,391 | 6,038 | ||||||
Other assets | 8,915 | 9,804 | ||||||
Total assets | $ | 600,307 | $ | 575,782 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits | $ | 493,828 | $ | 479,258 | ||||
Accrued interest expense | 231 | 180 | ||||||
Other liabilities | 7,063 | 6,960 | ||||||
Short-term borrowings | 5,337 | 7,354 | ||||||
Long-term debt | 15,000 | 5,000 | ||||||
Total liabilities | 521,459 | 498,752 | ||||||
Shareholders’ equity: | ||||||||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,329,060 shares issued; 6,043,102 and 6,038,554 shares outstanding, respectively | 73 | 73 | ||||||
Surplus | 10,723 | 10,558 | ||||||
Accumulated other comprehensive income, net of tax | 1,169 | 536 | ||||||
Retained earnings | 87,660 | 86,693 | ||||||
Less treasury stock: 1,285,958 and 1,290,506 shares at cost | (20,764 | ) | (20,817 | ) | ||||
Noncontrolling interest | (13 | ) | (13 | ) | ||||
Total shareholders’ equity | 78,848 | 77,030 | ||||||
Total liabilities and shareholders’ equity | $ | 600,307 | $ | 575,782 | ||||
FIRST US BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||||||
(Previously Known as United Security Bancshares, Inc. and Subsidiaries) | |||||||||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 6,773 | $ | 6,160 | $ | 19,192 | $ | 18,815 | |||||||
Interest on investment securities | 987 | 1,168 | 3,242 | 3,569 | |||||||||||
Total interest income | 7,760 | 7,328 | 22,434 | 22,384 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 532 | 557 | 1,568 | 1,721 | |||||||||||
Interest on borrowings | 55 | 4 | 115 | 19 | |||||||||||
Total interest expense | 587 | 561 | 1,683 | 1,740 | |||||||||||
Net interest income | 7,173 | 6,767 | 20,751 | 20,644 | |||||||||||
Provision (reduction in reserve) for loan losses | 680 | (78 | ) | 1,383 | (199 | ) | |||||||||
Net interest income after provision (reduction in reserve) for loan losses | 6,493 | 6,845 | 19,368 | 20,843 | |||||||||||
Non-interest income: | |||||||||||||||
Service and other charges on deposit accounts | 463 | 465 | 1,306 | 1,391 | |||||||||||
Credit insurance income | 256 | 150 | 570 | 339 | |||||||||||
Other income, net | 589 | 375 | 1,503 | 1,258 | |||||||||||
Net gain on sales and prepayments of investment securities | 259 | 6 | 657 | 367 | |||||||||||
Total non-interest income | 1,567 | 996 | 4,036 | 3,355 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and employee benefits | 4,334 | 4,106 | 12,734 | 12,513 | |||||||||||
Net occupancy and equipment | 830 | 744 | 2,381 | 2,347 | |||||||||||
Other real estate/foreclosure expense, net | 124 | 247 | 370 | 814 | |||||||||||
Other expense | 2,060 | 1,993 | 6,184 | 5,500 | |||||||||||
Total non-interest expense | 7,348 | 7,090 | 21,669 | 21,174 | |||||||||||
Income before income taxes | 712 | 751 | 1,735 | 3,024 | |||||||||||
Provision for income taxes | 162 | 207 | 406 | 870 | |||||||||||
Net income | $ | 550 | $ | 544 | $ | 1,329 | $ | 2,154 | |||||||
Basic net income per share | $ | 0.09 | $ | 0.09 | $ | 0.22 | $ | 0.35 | |||||||
Diluted net income per share | $ | 0.09 | $ | 0.09 | $ | 0.21 | $ | 0.34 | |||||||
Dividends per share | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.06 | |||||||