Executive Summary

Q4 2024 diluted EPS was $0.29, down from $0.36 in both Q3 2024 and Q4 2023; net interest margin compressed to 3.41% (vs 3.60% in Q3 and 3.67% in Q4 2023) amid 100 bps Fed rate cuts and faster asset repricing than liabilities .
Loan growth reaccelerated in Q4 (+$19.7M, +2.5% QoQ), led by construction, indirect consumer, and non‑farm/non‑residential CRE; deposits declined 0.9% on payoff of $10M brokered time deposits, while core deposits rose to 86.1% of total .
Noninterest expense fell YoY to $6.9M in Q4 (vs $7.4M in Q4 2023), driven by lower salaries/benefits and other expenses; efficiency ratio was 71.4% (vs 73.8% in Q4 2023) .
Capital return stepped up: dividend increased 40% to $0.07 and share repurchase authorization expanded by 600k shares (program extended to Dec 31, 2025), potential stock support catalysts .
Wall Street consensus (S&P Global) for EPS and revenue was unavailable at time of analysis, so estimate comparisons are not provided (see Estimates Context).

What Went Well and What Went Wrong

What Went Well

Loan growth returned in Q4: total loans +$19.7M (+2.5% QoQ) driven by construction, indirect consumer, and CRE; “we saw an uptick in loan growth throughout our lending platforms” — James F. House, President & CEO .
Improved investment portfolio yield via opportunistic purchases ($58.0M in 2024, $30.5M in Q4; taxable portfolio weighted average life ~3.6 years), supporting earning asset yields .
Operating discipline: noninterest expense reduced YoY, with lower salaries/benefits and other expenses; efficiency ratio improved vs prior year (71.4% vs 73.8%) .

What Went Wrong

Net interest margin contracted 19 bps QoQ to 3.41% (vs 3.60% in Q3) as Fed funds and market rates fell ~100 bps, and earning assets repriced faster than interest‑bearing liabilities; net interest income declined $0.4M QoQ and YoY .
Asset quality weakened: nonperforming assets rose to 0.50% of total assets (vs 0.28% a year ago), including one foreclosure to OREO and one loan moved to non‑accrual; net charge‑offs (NCOs) increased QoQ to 0.24% .
Provision for credit losses increased to $0.47M (vs $0.15M in Q3 and a $0.43M recovery in Q4 2023), reflecting loan growth, individual loan ACL increases, and macro forecast adjustments .

Financial Results

Metric	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($USD Millions)	$9.110	$9.040	$9.176	$9.185	$8.748
Non-interest Income ($USD Millions)	$0.916	$0.865	$0.835	$0.901	$0.982
Total Operating Income ($USD Millions)	$10.026	$9.905	$10.011	$10.086	$9.730
Provision for Credit Losses ($USD Millions)	$(0.434)	$0.000	$0.000	$0.152	$0.470
Net Income ($USD Millions)	$2.277	$2.107	$2.127	$2.222	$1.714
Diluted EPS ($USD)	$0.36	$0.34	$0.34	$0.36	$0.29
Net Interest Margin (%)	3.67%	3.65%	3.69%	3.60%	3.41%
Efficiency Ratio (%)	73.8%	72.2%	72.6%	69.3%	71.4%

Segment/Portfolio Mix (Loans held for investment):

Loan Category ($USD Millions)	Q3 2024	Q4 2024
Construction, Land Development, Other Land	$53.098	$65.537
1–4 Family Residential	$70.067	$69.999
Multi‑family Residential	$100.627	$101.057
Non‑farm, Non‑residential (CRE)	$224.611	$227.751
Commercial & Industrial (C&I)	$44.872	$44.238
Consumer – Direct	$5.018	$4.774
Consumer – Branch Retail	$6.233	$5.558
Consumer – Indirect	$298.782	$304.125
Total Loans	$803.308	$823.039

Key KPIs and Asset Quality:

KPI	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024
Total Loans ($USD Millions)	$821.791	$822.941	$819.126	$803.308	$823.039
Total Deposits ($USD Millions)	$950.191	$943.268	$954.455	$981.149	$972.557
Core Deposits ($USD Millions, % of Deposits)	$819.5 (86.2%)	$807.3 (85.6%)	$813.4 (85.2%)	$833.5 (85.0%)	$837.7 (86.1%)
ACL on Loans & Leases (% of Total Loans)	1.28%	1.27%	1.25%	1.26%	1.24%
Nonperforming Assets (% of Total Assets)	0.28%	0.28%	0.27%	0.60%	0.50%
Net Charge‑offs (% of Avg Loans)	0.19%	0.09%	0.10%	0.12%	0.24%
Tier 1 Leverage Ratio (%)	9.36%	9.37%	9.46%	9.49%	9.50%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Dividend per Share	Q1 2025	$0.05 per quarter	$0.07 per quarter	Raised 40%
Share Repurchase Program	Through 12/31/2025	352,813 shares remaining; expires 12/31/2024	+600,000 shares authorized; extended to 12/31/2025	Expanded and extended
Formal Financial Guidance (Revenue/Margins/OpEx)	2025	None provided	None provided	Maintained — management emphasized growing earning assets and reducing funding costs in changing rate environment

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was published in our document catalog; themes below reflect management press releases across quarters.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2024)	Trend
Loan Growth	“Loan growth has not developed this year… balance sheet poised for growth.” (Q3) ; “Well positioned to benefit from future asset growth opportunities.” (Q2)	“Uptick in loan growth throughout our lending platforms.” (Q4)	Improving into Q4
Funding Costs & Deposits	Replaced callable brokered deposits with lower‑rate deposits (Q3) ; pricing discipline (Q2)	Core deposits rose to 86.1%; payoff of $10M brokered time deposits; focus on reducing funding costs	Mix improving; cost reduction efforts ongoing
Investment Portfolio Strategy	Added $27.5M taxable agency bonds; improved yields (Q2) ; portfolio $145.0M (Q3)	Added $30.5M in Q4; investment securities $168.6M; expected average life 3.6 years	Continued deployment to enhance yields
Interest Rate Environment	Margin declined with liabilities repricing faster (Q3)	Fed funds cut ~100 bps; earning assets repriced faster than liabilities; NIM down to 3.41%	Down‑rate pressure on NIM intensified in Q4
Asset Quality	NPA up to 0.60% due to two loans to non‑accrual (Q3)	NPA 0.50%; OREO addition and one non‑accrual; NCOs up QoQ	Weakened vs prior year; mixed QoQ
Capital Returns	Ongoing buybacks (Q2/Q3)	Dividend raised 40%; buyback authorization expanded/extended	Accelerating shareholder returns
Liquidity	Readily available liquidity $370.6M (Q2) ; $431.3M (Q3)	$397.7M readily available liquidity; multiple funding sources	Strong; slightly lower than Q3

Management Commentary

“While 2024 was a challenging year from a loan growth standpoint, we were able to maintain diluted earnings per share at a level consistent with the previous year… we saw an uptick in loan growth… continued to enhance yield on our investment portfolio through opportunistic purchases.” — James F. House, President & CEO (Q4 press release) .
“Continued improvement in earnings per share, as well as a balance sheet poised for growth… deployment into favorably yielding investment securities and strategies to reduce interest expense over time.” (Q3) .
“Consistent earnings… pricing discipline on deposits and borrowings; quarter‑over‑quarter expansion of net interest margin for the first time since Q4 2022.” (Q2) .
“Taking advantage of market opportunities to improve asset yields, control expenses, and strengthen balance sheet positioning.” (Q1) .

Q&A Highlights

Not available; no Q4 2024 earnings call transcript was found in SEC filings or IR materials for the period. Analysis is based on the company’s 8‑K 2.02 and accompanying press releases .

Estimates Context

Wall Street consensus EPS and revenue estimates via S&P Global were unavailable at the time of analysis due to data access limits; therefore, results vs consensus estimates are not provided. Future incorporation of estimates will be added when accessible.

Key Takeaways for Investors

NIM sensitivity to rates is elevated; Q4’s 100 bps cuts pushed NIM to 3.41% and net interest income down $0.4M QoQ. Watch further rate paths and deposit cost repricing cadence .
Loan growth returned in Q4 (+2.5% QoQ), led by construction, indirect consumer, and CRE; sustaining this trajectory is key to earnings momentum in 2025 .
Asset quality is mixed: NPA ratio increased YoY and NCOs rose QoQ; credit metrics remain manageable but bear monitoring into 2025 .
Capital return stepped up materially: dividend increased to $0.07 and buyback capacity expanded/extended — supportive to per‑share metrics and share price floor in the near term .
Cost discipline continues (lower salaries/benefits and other expenses YoY), but margin pressure remains the bigger earnings driver; deposit mix shift toward core deposits is constructive .
Liquidity and capital buffers are strong (readily available liquidity ~$397.7M; Tier 1 leverage 9.50%), enabling flexibility to fund growth and manage the balance sheet through rate transitions .
Trading implications: near‑term moves likely tied to rate expectations and credit headlines; medium‑term upside depends on sustaining loan growth, investment yield actions, and continued funding cost reductions .

Sources: Q4 2024 8‑K and Exhibit 99.1 press release ; Q3 2024 8‑K press release ; Q2 2024 8‑K press release ; Q1 2024 8‑K press release ; IR press releases (dividend, repurchase, directors) ; IR page for Q4 press release .

FIRST US BANCSHARES, INC. (FUSB)·Q4 2024 Earnings Summary