BIRMINGHAM, Ala., Oct. 30, 2017 (GLOBE NEWSWIRE) -- First US Bancshares, Inc. (Nasdaq:FUSB) (the “Company”) today reported net income of $635,000, or $0.10 per diluted share, for the quarter ended September 30, 2017, compared to $550,000, or $0.09 per diluted share, for the corresponding period of 2016. For the nine months ended September 30, 2017, the Company reported net income of $1.5 million, or $0.22 per diluted share, compared to $1.3 million, or $0.21 per diluted share, for the corresponding period of 2016. The improved results were achieved despite reductions in certain non-routine income sources for the nine months ended September 30, 2017 compared to the same period in 2016. These reductions, which totaled $679,000, included a decrease of $429,000 in gains on sale and prepayments of investment securities and the collection of a judgment on a nonaccrual asset, which resulted in $100,000 and $150,000 of interest income and non-interest income, respectively, that was recognized during the third quarter of 2016.
Financial Highlights
“We are pleased to report continued improvement in earnings during the third quarter of 2017,” stated James F. House, President and Chief Executive Officer of the Company. “The third quarter represents our strongest quarter to date this year from an earnings standpoint. We continue to realize earnings growth built through expansion of our loan portfolio and focus on expense control,” continued Mr. House.
Results of Operations
Balance Sheet Management
About First US Bancshares, Inc.
First US Bancshares, Inc. 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. 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 SELECTED FINANCIAL DATA – LINKED QUARTERS (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
Quarter Ended | ||||||||||||||||
2017 | 2016 | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||
Results of Operations: | ||||||||||||||||
Interest income | $ | 7,820 | $ | 7,683 | $ | 7,510 | $ | 7,721 | $ | 7,760 | ||||||
Interest expense | 685 | 626 | 591 | 588 | 587 | |||||||||||
Net interest income | 7,135 | 7,057 | 6,919 | 7,133 | 7,173 | |||||||||||
Provision for loan losses | 373 | 576 | 515 | 1,814 | 680 | |||||||||||
Net interest income after provision for loan losses | 6,762 | 6,481 | 6,404 | 5,319 | 6,493 | |||||||||||
Non-interest income | 1,236 | 930 | 1,167 | 1,165 | 1,567 | |||||||||||
Non-interest expense | 7,190 | 6,863 | 7,037 | 6,826 | 7,348 | |||||||||||
Income (loss) before income taxes | 808 | 548 | 534 | (342 | ) | 712 | ||||||||||
Provision for (benefit from) income taxes | 173 | 132 | 130 | (237 | ) | 162 | ||||||||||
Net income (loss) | $ | 635 | $ | 416 | $ | 404 | $ | (105 | ) | $ | 550 | |||||
Per Share Data: | ||||||||||||||||
Basic net income (loss) per share | $ | 0.10 | $ | 0.07 | $ | 0.07 | $ | (0.02 | ) | $ | 0.09 | |||||
Diluted net income (loss) per share | $ | 0.10 | $ | 0.06 | $ | 0.06 | $ | (0.02 | ) | $ | 0.09 | |||||
Dividends declared | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | ||||||
Period-End Balance Sheet: | ||||||||||||||||
Total assets | $ | 614,599 | $ | 616,218 | $ | 619,827 | $ | 606,892 | $ | 600,307 | ||||||
Loans, net of allowance for loan losses | 338,026 | 330,526 | 317,677 | 322,772 | 317,121 | |||||||||||
Allowance for loan losses | 4,808 | 4,905 | 4,879 | 4,856 | 3,668 | |||||||||||
Investment securities, net | 185,802 | 200,831 | 213,497 | 207,814 | 209,566 | |||||||||||
Total deposits | 508,385 | 509,245 | 509,078 | 497,556 | 493,828 | |||||||||||
Short-term borrowings | 10,635 | 10,692 | 10,750 | 10,119 | 5,337 | |||||||||||
Long-term debt | 10,000 | 10,000 | 15,000 | 15,000 | 15,000 | |||||||||||
Total shareholders’ equity | 78,854 | 78,373 | 77,297 | 76,241 | 78,848 | |||||||||||
Key Ratios: | ||||||||||||||||
Return on average assets (annualized) | 0.41 | % | 0.27 | % | 0.27 | % | (0.07 | %) | 0.36 | % | ||||||
Return on average equity (annualized) | 3.21 | % | 2.14 | % | 2.12 | % | (0.53 | %) | 2.78 | % | ||||||
Loans to deposits | 66.5 | % | 64.9 | % | 62.4 | % | 64.9 | % | 64.2 | % | ||||||
Allowance for loan losses as % of loans | 1.40 | % | 1.46 | % | 1.51 | % | 1.48 | % | 1.14 | % | ||||||
Nonperforming assets as % of total assets | 0.94 | % | 1.01 | % | 1.10 | % | 1.20 | % | 1.28 | % | ||||||
FIRST US BANCSHARES, INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Per Share Data) | |||||||
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 8,705 | $ | 7,018 | |||
Interest-bearing deposits in banks | 23,849 | 16,512 | |||||
Total cash and cash equivalents | 32,554 | 23,530 | |||||
Investment securities available-for-sale, at fair value | 158,425 | 181,910 | |||||
Investment securities held-to-maturity, at amortized cost | 27,377 | 25,904 | |||||
Federal Home Loan Bank stock, at cost | 1,396 | 1,581 | |||||
Loans, net of allowance for loan losses of $4,808 and $4,856, respectively | 338,026 | 322,772 | |||||
Premises and equipment, net | 26,242 | 18,340 | |||||
Cash surrender value of bank-owned life insurance | 14,843 | 14,603 | |||||
Accrued interest receivable | 1,877 | 1,987 | |||||
Other real estate owned | 3,819 | 4,858 | |||||
Other assets | 10,040 | 11,407 | |||||
Total assets | $ | 614,599 | $ | 606,892 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits | $ | 508,385 | $ | 497,556 | |||
Accrued interest expense | 281 | 241 | |||||
Other liabilities | 6,444 | 7,735 | |||||
Short-term borrowings | 10,635 | 10,119 | |||||
Long-term debt | 10,000 | 15,000 | |||||
Total liabilities | 535,745 | 530,651 | |||||
Shareholders’ equity: | |||||||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; | |||||||
7,341,556 and 7,329,060 shares issued, respectively; 6,077,354 and 6,043,102 shares outstanding, respectively | 73 | 73 | |||||
Surplus | 10,657 | 10,786 | |||||
Accumulated other comprehensive income (loss), net of tax | 25 | (1,277 | ) | ||||
Retained earnings | 88,525 | 87,434 | |||||
Less treasury stock: 1,264,202 and 1,285,958 shares at cost, respectively | (20,414 | ) | (20,764 | ) | |||
Noncontrolling interest | (12 | ) | (11 | ) | |||
Total shareholders’ equity | 78,854 | 76,241 | |||||
Total liabilities and shareholders’ equity | $ | 614,599 | $ | 606,892 | |||
FIRST US 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, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
(Unaudited) | |||||||||||
Interest income: | |||||||||||
Interest and fees on loans | $ | 6,802 | $ | 6,773 | $ | 19,928 | $ | 19,192 | |||
Interest on investment securities | 1,018 | 987 | 3,085 | 3,242 | |||||||
Total interest income | 7,820 | 7,760 | 23,013 | 22,434 | |||||||
Interest expense: | |||||||||||
Interest on deposits | 617 | 532 | 1,713 | 1,568 | |||||||
Interest on borrowings | 68 | 55 | 189 | 115 | |||||||
Total interest expense | 685 | 587 | 1,902 | 1,683 | |||||||
Net interest income | 7,135 | 7,173 | 21,111 | 20,751 | |||||||
Provision for loan losses | 373 | 680 | 1,464 | 1,383 | |||||||
Net interest income after provision for loan losses | 6,762 | 6,493 | 19,647 | 19,368 | |||||||
Non-interest income: | |||||||||||
Service and other charges on deposit accounts | 481 | 463 | 1,406 | 1,306 | |||||||
Credit insurance income | 160 | 256 | 459 | 570 | |||||||
Net gain on sales and prepayments of investment securities | 178 | 259 | 228 | 657 | |||||||
Other income, net | 417 | 589 | 1,240 | 1,503 | |||||||
Total non-interest income | 1,236 | 1,567 | 3,333 | 4,036 | |||||||
Non-interest expense: | |||||||||||
Salaries and employee benefits | 4,370 | 4,334 | 13,048 | 12,734 | |||||||
Net occupancy and equipment | 806 | 830 | 2,276 | 2,381 | |||||||
Other real estate/foreclosure expense, net | 244 | 124 | 461 | 370 | |||||||
Other expense | 1,770 | 2,060 | 5,305 | 6,184 | |||||||
Total non-interest expense | 7,190 | 7,348 | 21,090 | 21,669 | |||||||
Income before income taxes | 808 | 712 | 1,890 | 1,735 | |||||||
Provision for income taxes | 173 | 162 | 435 | 406 | |||||||
Net income | $ | 635 | $ | 550 | $ | 1,455 | $ | 1,329 | |||
Basic net income per share | $ | 0.10 | $ | 0.09 | $ | 0.24 | $ | 0.22 | |||
Diluted net income per share | $ | 0.10 | $ | 0.09 | $ | 0.22 | $ | 0.21 | |||
Dividends per share | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.06 | |||
Contact: Thomas S. Elley
205-582-1200