First US Bancshares (FUSB) Q1 2025 earnings summary

Executive summary

• Net income for 1Q2025 was $1.8 million ($0.29 per diluted share), down from $2.1 million ($0.34 per share) in 1Q2024, mainly due to higher provision for credit losses and lower net interest income, but up from $1.7 million in 4Q2024.

• Net interest margin improved to 3.53% from 3.41% in 4Q2024 but declined from 3.65% in 1Q2024, reflecting faster liability repricing and lower loan yields after federal funds rate reductions.

• Non-interest expense remained stable at $6.9 million, benefiting from efficiency initiatives and lower salaries and professional fees.

• Tangible book value per share rose 2.1% to $16.34 since December 31, 2024.

• Asset quality improved, with nonperforming assets at 0.44% of total assets, down from 0.50% at year-end 2024.

Financial highlights

• Total assets reached $1.13 billion as of March 31, 2025, with total loans at $848 million and loan growth of 3.1% ($25.3 million), driven by consumer indirect, multi-family, and C&I lending.

• Deposits decreased by $10.6 million (1.1%) in 1Q2025, partly due to lower deposit pricing to improve margin.

• Short-term borrowings increased to $45 million from $10 million at year-end to fund loan growth and support liquidity.

• Non-interest income was stable at $0.9 million.

• Allowance for credit losses on loans and leases was 1.23% of total loans at 1Q2025.

Outlook and guidance

• Management remains focused on growing EPS, ROA, and ROE through diversified loan and deposit growth, strong credit culture, and expense control, while maintaining strong liquidity and capital positions.

• Plans include expanding loan production offices, leveraging digital banking, and opening a new banking center in Daphne, Alabama by 4Q2025.

• Management is cautious due to economic uncertainty, inflation, and interest rate volatility.