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FIRST US BANCSHARES, INC. (FUSB)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 diluted EPS was $0.29, flat sequentially vs Q4 2024 ($0.29) and down vs prior year ($0.34); net income was $1.77M vs $1.71M in Q4 2024 and $2.11M in Q1 2024 .
  • Net interest margin improved 12 bps QoQ to 3.53% (from 3.41%), but was below Q1 2024 (3.65%), driven by higher average loan volume and lower funding costs, offset by 2024 Fed funds rate cuts that reduced loan yields YoY .
  • Loans grew 3.1% QoQ to $848.3M, led by $41.3M growth in indirect consumer lending (weighted average credit score on new originations: 800; portfolio WA score: 779), while deposits fell 1.1% to $962.0M amid lower deposit pricing to support margin .
  • Short-term borrowings increased to $45.0M (from $10.0M) to maintain on-balance sheet liquidity while repricing deposits; readily available liquidity stood at $367.8M .
  • No formal revenue/EPS guidance; Board declared a $0.07 dividend for the 44th consecutive quarter (payable July 1, 2025). Consensus estimates were not available via S&P Global, so “vs estimates” comparisons are not applicable .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded 12 bps QoQ to 3.53%, with management citing loan growth and reduced funding costs: “meaningful improvement in net interest margin” and “discipline in lending, investing and funds management” .
  • Strong indirect consumer loan growth (+$41.3M QoQ) with high credit quality (800 WA score on new loans; portfolio WA score 779), plus growth in multi-family and C&I categories .
  • Asset quality improved: nonperforming assets decreased to $5.0M (0.44% of assets) from $5.5M (0.50%) in Q4 2024; net charge-offs fell to 0.13% (from 0.24% in Q4 2024) .

What Went Wrong

  • YoY margin headwinds persisted: NIM 3.53% vs 3.65% in Q1 2024, primarily from loan yield reductions following late-2024 Fed funds rate cuts; diluted EPS down to $0.29 vs $0.34 YoY .
  • Deposits declined 1.1% QoQ as management reduced pricing to support margin; core deposits fell to 84.6% of total (from 86.1%) .
  • Provision for credit losses of $0.53M (due to loan growth and individually evaluated loans) vs no provision in Q1 2024; short-term borrowings rose to $45.0M to bridge liquidity during deposit repricing .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Interest income ($USD)$14.277M $14.420M $14.018M
Interest expense ($USD)$5.237M $5.672M $5.121M
Net interest income ($USD)$9.040M $8.748M $8.897M
Provision for credit losses ($USD)$0.00M $0.470M $0.528M
Non-interest income ($USD)$0.865M $0.982M $0.875M
Non-interest expense ($USD)$7.147M $6.947M $6.918M
Net income ($USD)$2.107M $1.714M $1.772M
Diluted EPS ($USD)$0.34 $0.29 $0.29
Net interest margin (%)3.65% 3.41% 3.53%
Efficiency ratio (%)72.2% 71.4% 70.8%
Balance Sheet & Credit KPIsQ1 2024Q4 2024Q1 2025
Total assets ($USD)$1,070.5M $1,101.1M $1,127.0M
Total deposits ($USD)$943.3M $972.6M $962.0M
Total loans ($USD)$822.9M $823.0M $848.3M
Short-term borrowings ($USD)$15.0M $10.0M $45.0M
Long-term borrowings ($USD)$10.817M $10.872M $10.890M
Loans / deposits (%)87.2% 84.6% 88.2%
TCE / tangible assets (%)7.97% 8.33% 8.38%
Nonperforming assets / assets (%)0.28% 0.50% 0.44%
Net charge-offs / avg loans (%)0.09% 0.24% 0.13%
Loan Portfolio Composition ($USD)Q4 2024Q1 2025
Construction, land development & other land$65.537M $58.572M
1-4 family residential$69.999M $68.523M
Multi-family residential$101.057M $106.374M
Non-residential commercial real estate$227.751M $214.065M
Commercial & industrial$44.238M $45.166M
Consumer – Direct$4.774M $4.610M
Consumer – Indirect$309.683M $351.025M
Total loans & leases HFI$823.039M $848.335M
ACL on loans & leases$10.184M $10.405M
ACL as % of loans1.24% 1.23%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash dividend per sharePayable 7/1/2025$0.07 (Q4 2024 dividend level) $0.07 declared on 5/21/2025 Maintained
Share repurchase program – remaining authorization (shares)As of Q1 2025912,813 (as of 12/31/2024) 872,813 (as of 3/31/2025) Lower (repurchases)
Banking center opening – Daphne/Mobile, ALFY 2025 timing“anticipated in 2025” “anticipated by Q4 2025” Timing clarified

No formal quantitative revenue/EPS/OpEx/OI&E/tax rate guidance was provided in Q1 2025 materials .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was found in the filings catalog; themes reflect management’s press-release commentary [Search attempted, none available].

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Net interest marginDeclined QoQ due to swap accretion timing and brokered deposit fees; NIM 3.60% NIM fell to 3.41% amid 100 bps Fed cuts repricing assets faster than liabilities NIM improved to 3.53% on loan volume and lower funding costs Improving QoQ; still below YoY
Loan growthTotal loans down QoQ (-$15.8M) on construction payoffs Loans +$19.7M QoQ across construction, indirect, CRE Loans +$25.3M QoQ, led by +$41.3M indirect consumer; MF +$5.3M; C&I +$0.9M Growth re-accelerating, led by indirect
Deposits/funding costsDeposits +$26.7M; replaced callable brokered deposits with lower-rate deposits Deposits -$8.6M; paid off $10M brokered time deposits to reduce expense Deposits -$10.6M; lowered deposit pricing to support NIM Actively repricing to improve NIM
LiquidityReadily available liquidity $431.3M $397.7M $367.8M; added short-term borrowings to maintain liquidity while repricing deposits Adequate, modestly lower
Asset qualityNPA rose to 0.60% (two loans to non-accrual) NPA 0.50%; OREO and non-accrual additions in 2024 NPA declined to 0.44%; net charge-offs improved QoQ Improving QoQ
Capital returnsDividend $0.05; repurchases 29,500 shares Dividend increased to $0.07; repurchases 40,000 shares Dividend $0.07; repurchases 40,000 shares Ongoing returns maintained

Management Commentary

  • “We are off to a good start in 2025, reporting a quarter with solid loan growth and meaningful improvement in net interest margin… disciplined approach to lending, investing and funds management will serve the Company well” — James F. House, President & CEO .
  • “While 2024 was a challenging year from a loan growth standpoint, we were able to maintain diluted earnings per share… we saw an uptick in loan growth… continued to enhance yield on our investment portfolio through opportunistic purchases” — James F. House .
  • “Although loan growth has not developed this year, market volatility has provided opportunities to strengthen the Company's balance sheet… deployment into favorably yielding investment securities… strategies aimed at reducing interest expense over time” — James F. House (Q3 2024 context) .

Q&A Highlights

  • Not applicable. A Q1 2025 earnings call transcript was not available in company filings; no public Q&A to summarize.

Estimates Context

  • Wall Street consensus estimates via S&P Global were not available for Q1 2025 (no published EPS or revenue consensus), so “vs estimates” comparisons are not applicable. Values retrieved from S&P Global.
  • Actual quarterly metrics and comparisons herein rely on company 8‑K and press releases.

Key Takeaways for Investors

  • Margin trajectory turning: 12 bps QoQ NIM expansion suggests deposit repricing and loan mix strategies are working; monitor sustainability as rate environment evolves .
  • Loan growth returning, concentrated in high‑credit‑score indirect consumer; watch indirect portfolio performance and credit trends as volumes ramp (+$41.3M QoQ) .
  • Funding and liquidity tactics (higher short‑term borrowings) support NIM while deposit pricing resets; track pace of borrowing normalization and core deposit retention .
  • Asset quality improved sequentially (NPA to 0.44%, net charge‑offs down); provision elevated due to growth and specific loans; monitor provisioning as growth continues .
  • Capital return steady: $0.07 dividend maintained; ongoing repurchases (40k shares in Q1) with remaining authorization ~873k shares; supportive for per‑share metrics .
  • Medium‑term growth lever: new Daphne/Mobile banking center expected by Q4 2025, a potential catalyst for deposit gathering and funding mix optimization .
  • Near‑term trading lens: absent consensus estimates, stock narrative likely hinges on continued NIM improvement, indirect loan growth quality, and deposit cost discipline; risk is reliance on short‑term borrowings during transition .