First US Bancshares (FUSB) Q4 2024 earnings summary

Executive summary

• Full-year diluted EPS was $1.33 for both 2024 and 2023, with net income for 2024 at $8.2 million, nearly flat year-over-year, despite a volatile interest rate environment and margin compression in 4Q2024.

• Tangible book value per share increased 10.6% year-over-year to $16.00 as of December 31, 2024.

• Core deposit growth reached $18.1 million (2.2%) for the year, while loan growth was modest at $1.2 million (0.2%).

• Non-interest expense declined to $28.4 million for 2024, aided by lower salaries, benefits, and fraud recovery.

• CEO highlighted late-year loan growth and a focus on growing earning assets and reducing funding costs.

Financial highlights

• Net interest margin decreased by 28 basis points year-over-year, with sharper compression in 4Q2024 due to federal funds rate decreases; 4Q2024 margin was 3.41%, full-year margin was 3.59%.

• 4Q2024 diluted EPS was $0.29, down from $0.36 in both 3Q2024 and 4Q2023; net interest income for 4Q2024 was $8.7 million, and full-year net interest income was $36.1 million.

• Efficiency ratio improved to 69.3% in 4Q2024 from 73.8% in 4Q2023; full-year efficiency ratio was 71.4%.

• Return on average assets for 2024 was 0.82%; return on average tangible common equity was 9.99%.

• Tangible common equity to tangible assets rose to 8.33% at year-end 2024.

Outlook and guidance

• Strategic focus remains on growing EPS, ROA, and ROE through diversified loan and deposit growth, expense control, and adherence to strong credit culture.

• Management is focused on growing earning assets and reducing funding costs in response to the changing interest rate environment.

• Plans include expanding loan production offices, leveraging digital banking, and considering acquisitions for market expansion.

• New banking center in Knoxville opened; Daphne, AL location renovation underway, expected to open in 2025.