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FIRST US BANCSHARES, INC. (FUSB)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 earnings normalized: net income was $1.94MM and diluted EPS $0.32, rebounding from $0.03 in Q2 2025 as credit provisioning eased and specific commercial credit issues were substantially resolved .
  • Net interest margin improved to 3.60% (+1 bp q/q; flat y/y) and PPNR rose 7.1% q/q, reflecting higher NII and operational resilience despite a still-competitive deposit market .
  • Deposits grew 1.6% q/q (+$15.6MM), while asset quality improved: NPAs fell to 0.19% of assets and net charge-offs declined vs Q2, though remained elevated vs prior year given one final commercial loan charge-off .
  • Capital return: dividend maintained at $0.07/share and the Board later expanded the share repurchase program by 1,000,000 shares and extended it to 12/31/2026—potential stock support catalysts .

What Went Well and What Went Wrong

  • What Went Well

    • Provision normalization and credit resolution: Provision fell to $0.57MM from $2.72MM in Q2 2025 as “credit issues with two commercial loans…have now been largely resolved,” and indirect consumer charge-offs “decreased to more normalized levels,” per CEO .
    • Core profitability improved: PPNR increased 7.1% q/q (to $3.09MM), supported by higher NII and stable NIM at 3.60% (up 1 bp q/q; equal to Q3 2024) .
    • Funding and deposit traction: Deposits rose 1.6% q/q with average deposit costs at 2.14% (up modestly q/q; down y/y), indicating ongoing pricing discipline amid competitive pressures .

  • What Went Wrong

    • Charge-offs still elevated vs prior year: Net charge-offs were 0.61% annualized (vs 0.12% in Q3 2024), including a final $1.0MM charge-off on a commercial credit and $0.4MM in indirect consumer NCOs .
    • Expense pressure vs last year: Non-interest expense was $7.44MM, up from $6.99MM in Q3 2024, driven by professional fees, OREO write-downs, and inflationary impacts .
    • Loans contracted slightly q/q: Total loans decreased $3.9MM as CRE, construction and multifamily declines offset growth in indirect consumer and C&I .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Interest income ($USD Thousands)15,017 14,018 14,854 15,281
Net interest income ($USD Thousands)9,185 8,897 9,476 9,662
Non-interest income ($USD Thousands)901 875 849 860
Provision for credit losses ($USD Thousands)152 528 2,717 566
Non-interest expense ($USD Thousands)6,990 6,918 7,444 7,437
Net income ($USD Thousands)2,222 1,772 155 1,936
Diluted EPS ($)0.36 0.29 0.03 0.32
Net interest margin (%)3.60% 3.53% 3.59% 3.60%
Efficiency ratio (%)69.3% 70.8% 72.1% 70.7%

Segment/Portfolio breakdown – Loans ($USD Thousands, period-end)

CategoryQ3 2024Q2 2025Q3 2025
Construction, land development & other land53,098 48,101 38,560
1–4 family residential70,067 67,587 67,620
Multifamily residential100,627 118,807 112,763
Non-residential CRE224,611 215,035 211,400
Commercial & industrial44,872 40,986 46,562
Consumer – Direct5,018 4,836 4,999
Consumer – Indirect305,015 376,079 385,616
Total loans and leases HFI803,308 871,431 867,520

Key KPIs

KPIQ3 2024Q1 2025Q2 2025Q3 2025
ROAA (annualized)0.82% 0.66% 0.06% 0.68%
ROACE (annualized)9.21% 7.21% 0.61% 7.48%
ROATCE (annualized)9.99% 7.79% 0.66% 8.06%
Net interest margin3.60% 3.53% 3.59% 3.60%
Efficiency ratio69.3% 70.8% 72.1% 70.7%
ACL on loans (% of total loans)1.26% 1.23% 1.31% 1.23%
NPAs (% of total assets)0.60% 0.44% 0.33% 0.19%
Net charge-offs (% avg loans, annualized)0.12% 0.13% 0.79% 0.61%
Loans/Deposits81.9% 88.2% 88.3% 86.5%
Tangible book value/share ($)15.92 16.34 16.41 16.79
Tier 1 leverage ratio9.49% 9.55% 9.23% 9.19%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial guidance (revenue, margins, OpEx, tax, segments)FY/near-termNone provided None provided Maintained (no formal guidance)
Dividend per shareQ4 2025 (payable 1/2/26)$0.07 (Q3 2025) $0.07 (declared 11/19/25) Maintained
Share repurchase programThrough 12/31/2026872,813 shares remaining as of 9/30/25 +1,000,000 shares authorized; program extended to 12/31/2026 Expanded/Extended

Earnings Call Themes & Trends

Note: An earnings call transcript for Q3 2025 was not available in our sources during this review window.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Credit provisioning and specific commercial loans2Q: large provision due to indirect growth and two specific commercial loans; 1Q: modest provision tied to growth Provision down to $0.57MM; two commercial credit issues “largely resolved”; NCOs improved vs Q2 Improving
Indirect consumer portfolio growth/quality1Q: +$41.3MM; WA FICO 800 (new) ; 2Q: +$25.1MM; WA FICO 798 YTD Indirect reached $385.6MM; WA FICO 798 (new YTD) and 782 portfolio Strong quality; steady growth
Net interest margin trajectory1Q: +12 bps to 3.53% ; 2Q: 3.59% (+6 bps q/q) 3.60% (flat y/y, +1 bp q/q) Gradual improvement
Deposits and pricing1Q: deposits down on pricing actions ; 2Q: +2.6% with some brokered CDs +1.6% q/q; avg rate 2.14%; competitive market persists Stabilizing, disciplined pricing
Asset quality (NPAs/NCOs)1Q: NPAs 0.44%, NCOs 0.13% ; 2Q: NPAs 0.33%, NCOs 0.79% incl. $1.2MM partial commercial charge-off NPAs 0.19%; NCOs 0.61% incl. $1.0MM final commercial charge-off; $0.4MM indirect NPAs better; NCOs easing
Liquidity/short-term borrowings1Q: $45MM; 2Q: $35MM; strategy to maintain liquidity while repricing deposits $20MM at 9/30/25 (FHLB $10MM; FRB $10MM) Decreasing usage
Market expansion2Q: Daphne renovation; Mobile land purchase Daphne on track for 1H26; opened automated facility in Oct-25 (Mountain Brook) Executing plan

Management Commentary

  • “We returned to solid earnings during the third quarter as the provision for credit losses on loans decreased substantially from the second quarter…The credit issues with two commercial loans that manifested earlier in the year have now been largely resolved, and net charge-offs associated with consumer indirect loans decreased to more normalized levels during the third quarter.” — James F. House, President & CEO .
  • “We saw continued improvement in net interest income and margin, and pre-tax pre-provision net revenue, which increased by 7.1% comparing the third quarter to the second quarter.” — James F. House .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available from our sources; therefore, no Q&A details or guidance clarifications could be assessed at this time.

Estimates Context

  • S&P Global consensus for Q3 2025 was not available for EPS or revenue; as a result, we cannot benchmark reported results against Street expectations for this quarter.*
  • With minimal/absent formal coverage, estimate revisions are unlikely to be a near-term catalyst absent new disclosures.*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Earnings normalized as provisioning eased and specific commercial credit issues were addressed; diluted EPS rebounded to $0.32 from $0.03 in Q2 2025 .
  • Core profitability improved: NIM held at 3.60% and PPNR rose 7.1% q/q, indicating operating momentum despite deposit pricing competition .
  • Asset quality trends are constructive: NPAs declined to 0.19% of assets and NCOs moderated vs Q2, though still above prior-year levels after a final commercial loan charge-off .
  • Funding mix and liquidity remain solid with deposit growth (+1.6% q/q), controlled deposit costs (2.14% average), and diversified wholesale capacity (FHLB/FRB) .
  • Capital return supports the stock: dividend maintained ($0.07/share) and repurchase program significantly expanded and extended, offering downside support and capital deployment flexibility .
  • Watch for continued indirect consumer growth and credit performance; management emphasizes high-end borrower credit quality (WA FICO ~798 for new originations YTD) .
  • Near-term catalysts: continued improvement in credit costs and PPNR, progress on market expansion (Daphne opening 1H26), and execution against the expanded buyback .