BIRMINGHAM, Ala., July 30, 2018 (GLOBE NEWSWIRE) -- First US Bancshares, Inc. (Nasdaq:FUSB) (the “Company”) today reported net income of $359,000, or $0.06 per diluted share, for the quarter ended June 30, 2018 and $773,000, or $0.12 per diluted share, for the six months ended June 30, 2018.
Highlights
“We are gratified with the progress that we have made in advancing toward our pending acquisition of TPB,” said James F. House, President and Chief Executive Officer of the Company. “As the second quarter progressed, we continued to strengthen our relationships with the management and employees of TPB, and we have begun significant planning efforts in preparation for the consummation of the transaction. While engaged in these planning efforts, we have been able to maintain solid financial footing at the Company with another quarter of loan growth and asset quality improvement. We remain optimistic that we will be able to complete the acquisition of TPB before the end of 2018,” 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, cash flows, growth and earnings potential and expansion, 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, market conditions and investment returns, 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. With respect to statements relating to the proposed acquisition of The Peoples Bank, these factors include, but are not limited to, the possibility that regulatory and other approvals and conditions to the proposed transaction are not received or satisfied on a timely basis or at all, or contain unanticipated terms and conditions; the possibility that modifications to the terms of the transaction may be required in order to obtain or satisfy such approvals or conditions; delays in closing the transaction; difficulties, delays and unanticipated costs in integrating the organizations’ businesses or realized expected cost savings and other benefits; business disruptions as a result of the integration of the organizations, including possible loss of customers; diversion of management time to address transaction-related issues; and changes in asset quality and credit risk as a result of the transaction. With respect to statements related to the lease of the unused remaining leasable space in Pump House Plaza, these factors include, but are not limited to, the adherence of the leasing counterparty to the terms and conditions of the lease agreement and commercial real estate conditions in the Birmingham, Alabama market in general. 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 | ||||||||||||||
(Unaudited) | ||||||||||||||
2018 | 2017 | |||||||||||||
June | March | December | September | June | ||||||||||
30, | 31, | 31, | 30, | 30, | ||||||||||
Results of Operations: | ||||||||||||||
Interest income | $ | 8,390 | $ | 8,119 | $ | 8,087 | $ | 7,820 | $ | 7,683 | ||||
Interest expense | 888 | 805 | 804 | 685 | 626 | |||||||||
Net interest income | 7,502 | 7,314 | 7,283 | 7,135 | 7,057 | |||||||||
Provision for loan losses | 702 | 658 | 523 | 373 | 576 | |||||||||
Net interest income after provision for loan losses | 6,800 | 6,656 | 6,760 | 6,762 | 6,481 | |||||||||
Non-interest income | 1,132 | 1,140 | 1,333 | 1,236 | 930 | |||||||||
Non-interest expense | 7,492 | 7,301 | 7,359 | 7,190 | 6,863 | |||||||||
Income (loss) before income taxes | 440 | 495 | 734 | 808 | 548 | |||||||||
Provision for (benefit from) income taxes | 81 | 81 | 2,600 | 173 | 132 | |||||||||
Net income (loss) | $ | 359 | $ | 414 | $ | (1,866) | $ | 635 | $ | 416 | ||||
Per Share Data: | ||||||||||||||
Basic net income (loss) per share | $ | 0.06 | $ | 0.07 | $ | (0.30) | $ | 0.10 | $ | 0.07 | ||||
Diluted net income (loss) per share | $ | 0.06 | $ | 0.06 | $ | (0.29) | $ | 0.10 | $ | 0.06 | ||||
Dividends declared | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | ||||
Period-End Balance Sheet: | ||||||||||||||
Total assets | $ | 634,036 | $ | 627,319 | $ | 625,581 | $ | 614,599 | $ | 616,218 | ||||
Loans, net of allowance for loan losses | 355,529 | 353,805 | 346,121 | 338,026 | 330,526 | |||||||||
Allowance for loan losses | 4,952 | 4,829 | 4,774 | 4,808 | 4,905 | |||||||||
Investment securities, net | 165,740 | 181,942 | 180,150 | 185,802 | 200,831 | |||||||||
Total deposits | 531,428 | 525,273 | 517,079 | 508,385 | 509,245 | |||||||||
Short-term borrowings | 10,366 | 10,298 | 15,594 | 10,635 | 10,692 | |||||||||
Long-term debt | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||
Total shareholders’ equity | 75,634 | 75,525 | 76,208 | 78,854 | 78,373 | |||||||||
Key Ratios: | ||||||||||||||
Return on average assets (annualized) | 0.23% | 0.27% | (1.18%) | 0.41% | 0.27% | |||||||||
Return on average equity (annualized) | 1.91% | 2.21% | (9.38%) | 3.21% | 2.14% | |||||||||
Loans to deposits | 66.9% | 67.4% | 66.9% | 66.5% | 64.9% | |||||||||
Allowance for loan losses as % of loans | 1.37% | 1.35% | 1.36% | 1.40% | 1.46% | |||||||||
Nonperforming assets as % of total assets | 0.61% | 0.86% | 0.96% | 0.94% | 1.01% | |||||||||
FIRST US BANCSHARES, INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Per Share Data) | |||||||
June 30, | December 31, | ||||||
2018 | 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 8,536 | $ | 7,577 | |||
Interest-bearing deposits in banks | 33,262 | 19,547 | |||||
Total cash and cash equivalents | 41,798 | 27,124 | |||||
Federal funds sold | 15,000 | 15,000 | |||||
Investment securities available-for-sale, at fair value | 141,421 | 153,871 | |||||
Investment securities held-to-maturity, at amortized cost | 24,319 | 26,279 | |||||
Federal Home Loan Bank stock, at cost | 1,413 | 1,609 | |||||
Loans, net of allowance for loan losses of $4,952 and $4,774, respectively | 355,529 | 346,121 | |||||
Premises and equipment, net | 26,336 | 26,433 | |||||
Cash surrender value of bank-owned life insurance | 15,079 | 14,923 | |||||
Accrued interest receivable | 1,959 | 2,057 | |||||
Other real estate owned | 2,181 | 3,792 | |||||
Other assets | 9,001 | 8,372 | |||||
Total assets | $ | 634,036 | $ | 625,581 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits | $ | 531,428 | $ | 517,079 | |||
Accrued interest expense | 444 | 381 | |||||
Other liabilities | 6,164 | 6,319 | |||||
Short-term borrowings | 10,366 | 15,594 | |||||
Long-term debt | 10,000 | 10,000 | |||||
Total liabilities | 558,402 | 549,373 | |||||
Shareholders’ equity: | |||||||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; | |||||||
7,356,466 and 7,345,946 shares issued, respectively; 6,092,264 and 6,081,744 shares outstanding, respectively | 73 | 73 | |||||
Surplus | 10,970 | 10,755 | |||||
Accumulated other comprehensive income (loss), net of tax | (2,187 | ) | (868 | ) | |||
Retained earnings | 87,203 | 86,673 | |||||
Less treasury stock: 1,264,202 shares at cost | (20,414 | ) | (20,414 | ) | |||
Noncontrolling interest | (11 | ) | (11 | ) | |||
Total shareholders’ equity | 75,634 | 76,208 | |||||
Total liabilities and shareholders’ equity | $ | 634,036 | $ | 625,581 | |||
FIRST US BANCSHARES, INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Unaudited) | |||||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 7,331 | $ | 6,630 | $ | 14,420 | $ | 13,126 | |||||||
Interest on investment securities | 1,059 | 1,053 | 2,089 | 2,067 | |||||||||||
Total interest income | 8,390 | 7,683 | 16,509 | 15,193 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 798 | 568 | 1,499 | 1,096 | |||||||||||
Interest on borrowings | 90 | 58 | 194 | 121 | |||||||||||
Total interest expense | 888 | 626 | 1,693 | 1,217 | |||||||||||
Net interest income | 7,502 | 7,057 | 14,816 | 13,976 | |||||||||||
Provision for loan losses | 702 | 576 | 1,360 | 1,091 | |||||||||||
Net interest income after provision for loan losses | 6,800 | 6,481 | 13,456 | 12,885 | |||||||||||
Non-interest income: | |||||||||||||||
Service and other charges on deposit accounts | 444 | 461 | 911 | 925 | |||||||||||
Credit insurance income | 100 | 43 | 318 | 299 | |||||||||||
Net gain on sales and prepayments of investment securities | 102 | 1 | 105 | 50 | |||||||||||
Mortgage fees from secondary market | 144 | 58 | 261 | 58 | |||||||||||
Other income, net | 342 | 367 | 677 | 765 | |||||||||||
Total non-interest income | 1,132 | 930 | 2,272 | 2,097 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and employee benefits | 4,533 | 4,280 | 9,100 | 8,678 | |||||||||||
Net occupancy and equipment | 873 | 693 | 1,762 | 1,470 | |||||||||||
Computer services | 317 | 312 | 609 | 699 | |||||||||||
Fees for professional services | 266 | 230 | 539 | 463 | |||||||||||
Other expense | 1,503 | 1,348 | 2,783 | 2,590 | |||||||||||
Total non-interest expense | 7,492 | 6,863 | 14,793 | 13,900 | |||||||||||
Income before income taxes | 440 | 548 | 935 | 1,082 | |||||||||||
Provision for income taxes | 81 | 132 | 162 | 262 | |||||||||||
Net income | $ | 359 | $ | 416 | $ | 773 | $ | 820 | |||||||
Basic net income per share | $ | 0.06 | $ | 0.07 | $ | 0.13 | $ | 0.13 | |||||||
Diluted net income per share | $ | 0.06 | $ | 0.06 | $ | 0.12 | $ | 0.13 | |||||||
Dividends per share | $ | 0.02 | $ | 0.02 | $ | 0.04 | $ | 0.04 | |||||||
Key Ratios: | |||||||||||||||
Return on average assets (annualized) | 0.23 | % | 0.27 | % | 0.25 | % | 0.27 | % | |||||||
Return on average equity (annualized) | 1.91 | % | 2.14 | % | 2.06 | % | 2.13 | % | |||||||