FUSB · First US Bancshares, Inc.

First US Bancshares delivered a mixed but fundamentally sound first quarter, with year-over-year earnings growth (+5.6%) offset by sequential softness (-9.5% from Q4 2025), driven primarily by net interest margin compression to 3.37%—the lowest in five quarters—due to loan yield reductions following Federal Funds rate cuts in late 2025. While net interest income declined modestly quarter-over-quarter, the provision for credit losses increased slightly from Q4 but remained well below both Q1 2025 and prior quarters, supporting net interest income after provision. Non-interest income fell 15.6% sequentially, largely due to absence of customer-related interest rate swap fees earned in Q4. On the balance sheet, total loans decreased $9.3 million (1.1%), reflecting expected runoff in construction and non-residential CRE categories, while indirect consumer lending grew strongly—consistent with seasonal trends and supported by high-quality collateral (weighted average credit score of 797). Deposits rose $10.9 million (1.1%), with core deposits expanding to 82.2% of total deposits, signaling franchise resilience amid intense competitive pressure on rates. Asset quality metrics deteriorated modestly: nonperforming assets rose to 0.16% of total assets and net charge-offs increased to 0.23% of average loans, driven by a $48 thousand partial charge-off on a single commercial loan and elevated indirect portfolio losses—but the ACL remained stable at 1.25% of total loans. Capital and liquidity remain robust: Tier 1 leverage ratio stood at 8.85%, and the Company executed $2.2 million in share repurchases while sustaining its $0.07 quarterly dividend. Management emphasized strategic positioning, citing strong core deposit growth and disciplined balance sheet management amid geopolitical and economic uncertainty.