First US Bancshares (FUSB) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $2.1 million ($0.34 per diluted share), up from $2.0 million ($0.31 per share) in Q2 2023; six-month net income was $4.2 million ($0.68 per share), up from $4.1 million ($0.64 per share) year-over-year.

• Diluted EPS for the trailing 12 months reached $1.37, reflecting ongoing profitability improvements.

• First quarter of net interest margin expansion since 4Q2022, with margin rising to 3.69% in 2Q2024 from 3.65% in 1Q2024.

• CEO highlighted consistent earnings and improved year-to-date results amid a volatile economic environment, with a focus on liquidity and net interest margin expansion.

• No provision for credit losses was recorded in the first half of 2024, compared to $0.6 million in the prior year period.

Financial highlights

• Total assets stood at $1,083.3 million, total loans at $819 million, and total deposits at $954.5 million as of June 30, 2024.

• Net interest income for the six months ended June 30, 2024 was $18.2 million, down from $18.8 million in 2023.

• Net interest margin was 3.69% in Q2 2024, up from 3.65% in Q1 2024, but down from 3.88% in Q2 2023.

• Non-interest income was $1.7 million for the six months ended June 30, 2024, up 4.4% year-over-year.

• Annualized net charge-offs as a percentage of average loans were 0.10% for the six months ended June 30, 2024, down from 0.14% in 2023.

Outlook and guidance

• Management remains cautiously optimistic for the second half of 2024, noting inflation has slowed but may remain above market expectations.

• Lending teams remain focused on credit fundamentals amid a fluid economic environment.

• Opportunities for repricing earning assets at favorable rates are expected to continue.

• The company is positioned for future asset growth opportunities and will continue to manage the balance sheet vigilantly.

• Balance sheet structured for stability in various rate environments, with $50 million notional in interest rate floors acquired to mitigate downward rate risk.