First US Bancshares (FUSB) Q4 2024 earnings summary

Executive summary

• Full-year diluted EPS was $1.33 for both 2024 and 2023, with 4Q2024 EPS at $0.29, down from $0.36 in 3Q2024 and 4Q2023, due to margin compression and higher credit loss provisioning.

• Net income for 4Q2024 was $1.7 million, down from $2.2 million in 3Q2024 and $2.3 million in 4Q2023; full-year 2024 net income was $8.2 million, nearly flat year-over-year.

• Non-interest expense declined to $28.4 million in 2024 from $29.1 million in 2023, aided by lower salaries, check fraud recovery, and reduced collection expense.

• Tangible book value per share rose 10.6% to $16.00 as of December 31, 2024.

• CEO noted challenges in loan growth for 2024 but highlighted a late-year uptick and focus on growing earning assets and reducing funding costs.

Financial highlights

• Total assets reached $1,101 million, total loans $823 million, and total deposits $973 million as of December 31, 2024.

• Core deposit growth was $18.1 million (2.2%) for 2024; loan growth was $1.2 million (0.2%), challenged by construction loan payoffs.

• Net interest income for 4Q2024 was $8.7 million, down from $9.2 million in 3Q2024 and $9.1 million in 4Q2023; full-year net interest income was $36.1 million, down from $37.4 million in 2023.

• Net interest margin declined to 3.41% in 4Q2024 from 3.60% in 3Q2024 and 3.67% in 4Q2023; full-year margin was 3.59%, down from 3.87% in 2023.

• Non-interest income rose to $1.0 million in 4Q2024 and $3.6 million for the year, both up from prior periods.

Outlook and guidance

• Strategic focus remains on growing EPS, ROA, and ROE, maintaining strong credit culture, and effective expense control.

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

• Plans include expanding digital offerings, optimizing branch footprint, and considering acquisitions for market expansion.

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