First US Bancshares (FUSB) Q2 2024 earnings summary

Executive summary

• Net income for 2Q2024 was $2.1 million ($0.34 per diluted share), flat sequentially and up from $2.0 million ($0.31 per share) in 2Q2023; trailing 12 months EPS reached $1.37.

• Six-month net income totaled $4.2 million ($0.68 per diluted share), up from $4.1 million ($0.64 per share) in the prior year period.

• Net interest margin expanded to 3.69% in 2Q2024, the first increase since 4Q2022, but down from 3.88% in 2Q2023.

• Core deposits remained stable at 85.2% of total deposits as of June 30, 2024.

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

Financial highlights

• Total assets were $1,083 million as of June 30, 2024, up 1% from year-end 2023; total loans $819 million; total deposits $954 million.

• Net interest income for 2Q2024 was $9.2 million, up from $9.0 million in 1Q2024, but down from $9.3 million in 2Q2023; six-month net interest income was $18.2 million, down from $18.8 million in 2023.

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

• Non-interest expense remained flat at $14.4 million for the six months ended June 30, 2024.

• Yield on earning assets increased to 5.85% in 2Q2024 from 5.76% in 1Q2024 and 5.42% in 2Q2023.

Outlook and guidance

• Management remains cautiously optimistic for the second half of 2024, monitoring inflation, interest rates, and competitive pressures.

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

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

• Balance sheet structured for stability and resilience across various rate environments.