Earnings release
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Exhibit 99.1 First US Bancshares, Inc. Reports Second Quarter 2026 Results BIRMINGHAM, AL (July 29, 2026) First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”), today reported net income of $1.8 million, or $0.31 per diluted share, for the quarter ended June 30, 2026 (“2Q2026”), compared to $1.9 million, or $0.33 per diluted share, for the quarter ended March 31, 2026 (“1Q2026”) and $0.2 million, or $0.03 per diluted share, for the quarter ended June 30, 2025 (“2Q2025”). For the six months ended June 30, 2026, net income totaled $3.7 million, or $0.64 per diluted share, compared to $1.9 million, or $0.32 per diluted share, for the six months ended June 30, 2025. The increase in earnings in both 2Q2026 and the six months ended June 30, 2026, compared to the corresponding periods of 2025, resulted primarily from a decrease in the provision for credit losses on loans and leases. The table below summarizes selected financial data for each of the periods presented. Quarter Ended Six Months Ended 2026 2025 2026 2025 June 30, March 31, December 31, September 30, June 30, June 30, June 30, Results of Operations: (Dollars in Thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income $ 14,657 $ 14,940 $ 15,262 $ 15,281 $ 14,854 $ 29,597 $ 28,872 Interest expense 5,157 5,725 5,839 5,619 5,378 10,882 10,499 Net interest income 9,500 9,215 9,423 9,662 9,476 18,715 18,373 Provision for credit losses 939 254 220 566 2,717 1,193 3,245 Net interest income after provision for credit losses 8,561 8,961 9,203 9,096 6,759 17,522 15,128 Non-interest income 1,318 840 995 860 849 2,158 1,724 Non-interest expense 7,643 7,341 7,271 7,437 7,444 14,984 14,362 Income before income taxes 2,236 2,460 2,927 2,519 164 4,696 2,490 Provision for income taxes 483 515 798 583 9 998 563 Net income $ 1,753 $ 1,945 $ 2,129 $ 1,936 $ 155 $ 3,698 $ 1,927 Per Share Data: Basic net income per share $ 0.31 $ 0.34 $ 0.37 $ 0.33 $ 0.03 $ 0.65 $ 0.33 Diluted net income per share $ 0.31 $ 0.33 $ 0.36 $ 0.32 $ 0.03 $ 0.64 $ 0.32 Dividends declared $ 0.07 $ 0.07 $ 0.07 $ 0.07 $ 0.07 $ 0.14 $ 0.14 Key Measures (Period End): Total assets $ 1,147,619 $ 1,165,236 $ 1,154,785 $ 1,147,175 $ 1,143,379 Tangible assets 1,140,184 1,157,801 1,147,350 1,139,740 1,135,932 Total loans 860,635 843,697 853,018 867,520 871,431 Allowance for credit losses ("ACL") on loans and leases 10,882 10,536 10,704 10,700 11,388 Investment securities, net 165,959 181,545 168,540 164,493 157,137 Total deposits 997,956 1,038,849 1,027,962 1,002,472 986,846 Short-term borrowings 25,000 — — 20,000 35,000 Long-term borrowings 10,982 10,963 10,945 10,927 10,909 Total shareholders’ equity 104,285 104,634 105,648 104,238 101,892 Tangible common equity 96,850 97,199 98,213 96,803 94,445 Book value per common share 18.88 18.67 18.53 18.08 17.70 Tangible book value per common share 17.54 17.34 17.23 16.79 16.41 Common shares outstanding 5,523,209 5,604,123 5,699,696 5,765,137 5,755,064 Key Ratios: Return on average assets (annualized) 0.62% 0.67% 0.74% 0.68% 0.06% 0.65% 0.35% Return on average common equity (annualized) 6.73% 7.46% 8.04% 7.48% 0.61% 7.09% 3.86% Return on average tangible common equity (annualized) 7.24% 8.02% 8.65% 8.06% 0.66% 7.63% 4.17% Pre-tax pre-provision net revenue to average assets (annualized) 1.12% 0.94% 1.09% 1.08% 1.03% 1.03% 1.05% Net interest margin 3.56% 3.37% 3.46% 3.60% 3.59% 3.46% 3.56% Efficiency ratio 70.7% 73.0% 69.8% 70.7% 72.1% 71.8% 71.5% Total loans to deposits 86.2% 81.2% 83.0% 86.5% 88.3% Total loans to assets 75.0% 72.4% 73.9% 75.6% 76.2% Common equity to total assets 9.09% 8.98% 9.15% 9.09% 8.91% Tangible common equity to tangible assets 8.49% 8.40% 8.56% 8.49% 8.31% Tier 1 leverage ratio 9.16% 8.85% 9.03% 9.19% 9.23% ACL on loans and leases as % of total loans 1.26% 1.25% 1.25% 1.23% 1.31% Nonperforming assets as % of total assets 0.17% 0.16% 0.14% 0.19% 0.33% Net charge-offs as a percentage of average loans (annualized) 0.30% 0.23% 0.08% 0.61% 0.79% 0.27% 0.47% Refer to the Non-GAAP Financial Measures section for a reconciliation of this non-GAAP measure to a GAAP-amount. Efficiency ratio = non-interest expense / (net interest income + non-interest income) First US Bank Tier 1 leverage ratio (1) (1) (1) (1) (1) (2) (1) (3) (1) (2) (3)
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 2 CEO Commentary “We are pleased to report significantly improved year-over-year earnings, along with solid loan growth and quarter-over-quarter expansion of net interest margin,” stated James F. House, President and CEO of the Company. “Diluted earnings per share doubled comparing the first six months of 2026 to the same period of 2025. While the geopolitical and economic environments remain uncertain, we continued to see resilience in the markets that we serve during the second quarter. We experienced robust loan growth during the quarter, particularly in the Bank’s construction and indirect consumer lending portfolios. In addition, we saw substantial margin improvement from 1Q2026 as we were able to manage deposit costs downward in a meaningful way,” continued Mr. House. Financial Results Loans and Leases – The table below summarizes loan balances by portfolio category as of the end of each of the most recent five quarters. Quarter Ended 2026 2025 June 30, March 31, December 31, September 30, June 30, (Dollars in Thousands) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Real estate loans: Construction, land development and other land loans $41,062 $27,236 $32,618 $38,560 $48,101 Secured by 1-4 family residential properties 63,093 65,460 66,996 67,620 67,587 Secured by multi-family residential properties 119,362 124,826 117,769 112,763 118,807 Secured by non-residential commercial real estate 181,480 189,408 200,699 211,400 215,035 Commercial and industrial loans ("C&I") 46,834 46,665 48,360 46,562 40,986 Consumer loans: Direct 4,379 4,362 4,844 4,999 4,836 Indirect 404,425 385,740 381,732 385,616 376,079 Total loans and leases held for investment 860,635 843,697 853,018 867,520 871,431 ACL on loans and leases 10,882 10,536 10,704 10,700 11,388 Net loans and leases held for investment $849,753 $833,161 $842,314 $856,820 $860,043 Total loans increased by $16.9 million, or 2.0%, in 2Q2026 compared to 1Q2026. Growth in the construction and consumer indirect categories was partially offset by decreases in other categories, primarily in non-residential commercial real estate, multi-family residential and 1-4 family residential. The decreases in the commercial real estate and multi-family categories resulted primarily from the payoff of real estate projects that had been anticipated to occur in the normal course of the project life cycle. The growth in the construction category was consistent with economic growth in the Company’s service territories, while the growth in the indirect consumer category was consistent with typical seasonal trends. The indirect lending platform focuses on consumer lending at the higher end of the credit spectrum. Collateral financed in the indirect portfolio primarily includes boats, recreational vehicles, campers, horse trailers and cargo trailers. The weighted average credit score at the time of funding for the portfolio was 785. Growth in the total loan portfolio during 2Q2026 offset reductions in 1Q2026. For the six months ended June 30, 2026, total loans increased by $7.6 million, or 0.9%. Average total loans over the six-month period ended June 30, 2026 were $11.3 million, or 1.3%, higher than average total loans over the corresponding period of 2025. Consistent with reductions in the Federal funds rate in the latter part of 2025, the average yield on loans decreased in the first six months of 2026 relative to the corresponding period of 2025. The average yield on total loans was 5.90% in 2Q2026, compared to 5.95% during 1Q2026 and 6.07% in 2Q2025. For the six months ended June 30, 2026, the average yield on loans totaled 5.92%, compared to 6.05% during the six months ended June 30, 2025. Deposits – Total deposits decreased by $40.9 million, or 3.9%, in 2Q2026. Included in the decrease were $20.1 million in wholesale brokered time deposits that matured and were not replaced. Of the remaining decrease, $15.1 million represented interest-bearing demand deposit accounts and $6.4 million interest-bearing time deposits. These decreases were partially offset by an increase in noninterest- bearing demand deposits of $0.7 million during the quarter. The decrease in both wholesale deposits, as well as other interest-bearing deposits, assisted management’s efforts to reduce overall deposit costs, while maintaining an appropriate level of core funding. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $835.2 million, or 83.7% of total deposits, as of June 30, 2026, compared to $853.8 million or 82.2% of total deposits, as of March 31, 2026, and $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on deposits totaled 1.98% during 2Q2026, compared to 2.18% during 1Q2026 and 2.08% during 2Q2025. For the six months ended June 30, 2026, the average rate on deposits totaled 2.08%, compared to 2.07% during the six months ended June 30, 2025.
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 3 Cash and Investment Securities – As of June 30, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $63.8 million, or 5.6% of total assets, compared to $78.4 million, or 6.8% of total assets, as of December 31, 2025. Investment securities, including both the available-for-sale and held-to-maturity portfolios, totaled $166.0 million as of June 30, 2026, compared to $168.5 million as of December 31, 2025. During the six months ended June 30, 2026, the Company purchased $25.4 million in investment securities at market rates in existence at the time of purchase. In addition, the Company sold investment securities with a principal balance totaling $7.1 million and recorded a gain on sale totaling $0.5 million during 2Q2026. These purchases and sales, combined with the maturity and paydown of investment securities at lower rates, have led to continued improvement in yield on the portfolio. The average yield on investment securities, including both available-for-sale and held-to-maturity securities, totaled 3.95% during 2Q2026, compared to 3.89% during 1Q2026, and 3.46% during 2Q2025. For the six months ended June 30, 2026, the average yield on investment securities totaled 3.92%, compared to 3.45% during the six months ended June 30, 2025. As of June 30, 2026, the expected average life of securities in the investment portfolio was 3.6 years compared to 3.7 years as of December 31, 2025. Net Interest Income and Margin – Net interest income in 2Q2026 increased by $0.3 million, or 3.1%, compared to 1Q2026 and increased by $24 thousand, or 0.3%, compared to 2Q2025. Net interest margin was 3.56% for 2Q2026, compared to 3.37% for 1Q2026 and 3.59% for 2Q2025. For the six months ended June 30, 2026, net interest margin totaled 3.46%, compared to 3.56% for the six months ended June 30, 2025. The decrease in net interest margin comparing the first half of 2026 to the corresponding period of 2025 resulted primarily from reductions in loan yields that occurred following the reduction of the Federal funds rate during the latter part of 2025. Asset Quality – Nonperforming assets, including loans in non-accrual status, other real estate owned, and repossessed assets, totaled $1.9 million as of June 30, 2026, compared to $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets totaled 0.17% as of June 30, 2026, compared to 0.14% as of December 31, 2025. Net charge-offs as a percentage of average loans totaled 0.30% in 2Q2026, compared to 0.23% in 1Q2026 and 0.79% during 2Q2025. For the six months ended June 30, 2026, net charge-offs as a percentage of average loans totaled 0.27%, compared to 0.47% during the six months ended June 30, 2025. The decrease in net charge- offs comparing the first half of 2026 to the corresponding period of 2025 was due to the partial charge-off in 2Q2025 of one individually evaluated commercial loan totaling $1.2 million that was not repeated in 2026. The increase in net charge-offs comparing 2Q2026 to 1Q2026 was due to an uptick in charge-offs associated with the indirect portfolio. Provision for Credit Losses – During 2Q2026, the Company recorded a provision for credit losses totaling $0.9 million, compared to $0.3 million in 1Q2026 and $2.7 million in 2Q2025. For the six months ended June 30, 2026, the provision for credit losses totaled $1.2 million, compared to $3.2 million for the six months ended June 30, 2025. The increase in provision in 2Q2026 compared to 1Q2026 was due primarily to loan growth in 2Q2026, as well as changes in the economic forecasting associated with the Company’s credit forecasting model. The decreased provision comparing the first half of 2026 to the corresponding periods of 2025 resulted primarily from provisioning for specifically identified commercial loans in 2Q2025. The credit issues associated with additional provisioning in 2Q2025 were resolved later in 2025, and accordingly, the same level of provisioning was not repeated during 2026. As of June 30, 2026, the Company’s ACL on loans and leases as a percentage of total loans was 1.26%, compared to 1.25% as of December 31, 2025. While management believes that the ACL is adequate to absorb credit losses within the Company’s loan portfolio, inherent uncertainty exists pertaining to the ultimate impact on the portfolio of both geopolitical and economic matters, including prospective inflation, unemployment levels, tariffs, and consumer affordability. Pre-tax Pre-provision Net Revenue (“PPNR”) – PPNR totaled $3.2 million in 2Q2026, compared to $2.7 million in 1Q2026 and $2.9 million in 2Q2025. As a percentage of average assets, PPNR totaled 1.12% in 2Q2026, compared to 0.94% in 1Q2026 and 1.03% in 2Q2025. For the six months ended June 30, 2026, PPNR as a percentage of average assets was 1.03%, compared to 1.05% for the six months ended June 30, 2025. Refer to the non-GAAP Financial Measures section for a reconciliation of PPNR to net income. Non-interest Income – Non-interest income increased to $1.3 million in 2Q2026, compared to $0.8 million in both 1Q2026 and 2Q2025. The increase in non-interest income in 2Q2026 compared to both prior periods resulted from gains on sale of securities totaling $0.5 million. For the six months ended June 30, 2026, non-interest income totaled $2.2 million, compared to $1.7 million for the six months ended June 30, 2025, an increase of $0.5 million resulting from the gains on sale of securities taken in 2Q2026. Non-interest Expense – Non-interest expense totaled $7.6 million in 2Q2026, compared to $7.3 million in 1Q2026 and $7.4 million in 2Q2025. For the six months ended June 30, 2026, non-interest expense totaled $15.0 million, compared to $14.4 million for the six months ended June 30, 2025. The expense increases, comparing both 2Q2026 and the six-month period ended June 30, 2026 to prior periods, resulted primarily from inflationary increases in various expense categories, as well as an increase in net occupancy expenses associated with expansion of the Company’s banking center footprint.
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 Shareholders’ Equity – As of June 30, 2026, shareholders’ equity totaled $104.3 million, or 9.09% of total assets, compared to $105.6 million, or 9.15% of total assets, as of December 31, 2025. While earnings, net of dividends paid, increased shareholders’ equity during the six months ended June 30, 2026, the increase was fully offset by share repurchases, combined with an increase in the Company’s accumulated other comprehensive loss resulting primarily from the increasing interest rate environment and the sale of investment securities during the period. The Company’s ratio of tangible common equity to tangible assets was 8.49% as of June 30, 2026, compared to 8.56% as of December 31, 2025. Cash Dividend – In 2Q2026, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividend paid in 1Q2026 and all four quarters of 2025. Share Repurchases – During 2Q2026, the Company completed the repurchase of 91,000 shares of its common stock at a weighted average price of $15.83 per share, bringing total share repurchases for the six months ended June 30, 2026 to 237,500 shares at a weighted average price of $15.33 per share. All repurchases were completed under the Company’s previously announced share repurchase program, which was expanded in 2025. As of June 30, 2026, 1,547,313 shares remained available for repurchase under the program. Regulatory Capital – During 2Q2026, the Bank continued to maintain capital ratios at higher levels than required to be considered a “well- capitalized” institution under applicable banking regulations. As of June 30, 2026, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 10.85%, its total capital ratio was 12.02%, and its Tier 1 leverage ratio was 9.16%. Liquidity – As of June 30, 2026, the Company continued to maintain funding capacity sufficient to provide adequate liquidity for loan growth, capital expenditures and ongoing operations. The Company benefits from a strong core deposit base, a liquid investment securities portfolio and access to funding from a variety of sources, including federal funds lines with other banking institutions, FHLB advances, the FRB's discount window, and brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company’s liquidity. Banking Center Growth – During 2Q2026, the Company opened a new banking center office in Daphne, Alabama. The location will serve as the Bank’s initial deposit gathering facility in the Daphne/Mobile area. In addition, during 2Q2026, the Company purchased an office in Orange Beach, Alabama, which is expected to serve as a banking center following the completion of renovations. The location is expected to open to the public in 2027. About First US Bancshares, Inc. First US Bancshares, Inc. (the “Company”) is a bank holding company that operates banking offices in Alabama, Tennessee, and Virginia through First US Bank (the “Bank”). The Company files periodic reports with the U.S. Securities and Exchange Commission (the “SEC”). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.firstusbank.com. More information about the Company and the Bank may be obtained at www.firstusbank.com. The Company’s stock is traded on the Nasdaq Capital Market under the symbol “FUSB.” Forward-Looking Statements This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. The Company undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, the Company, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of the Company’s senior management based upon current information and involve a number of risks and uncertainties. Certain factors that could affect the accuracy of such forward-looking statements and cause actual results to differ materially from those projected in such forward-looking statements are identified in the public filings made by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be considered in light of those factors. Such factors may include risk related to the Company's credit, including loan losses may be greater than anticipated; our ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future financial obligations; the increased lending risks associated with commercial real estate lending; potential weakness in the residential real estate market; liquidity risks; the impact of national and local market conditions on the Company's business and operations; the rate of growth (or lack thereof) in the economy generally and in the Company’s service areas; the effects of significant changes to the structure and operations of the federal government; digital banking trends may create deposit volatility; strong competition in the banking industry; the impact of changes in interest rates and monetary policy on the Company’s performance and financial condition; the effects of fiscal challenges facing the U.S. government or any potential government shutdown; effects of changes in the policies of monetary authorities and other government action; the impact of technological changes in the
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 5 banking and financial service industries and potential information system failures; cybersecurity and data privacy threats; the risks and challenges presented by the development and use of artificial intelligence (“AI”); risks of dependence on outside third parties for the processing and handling of our records and data; the costs of complying with extensive governmental regulation; the risk that internal controls and procedures might fail or be circumvented; the impact of changing accounting standards and tax laws on the Company's allowance for credit losses and financial results; the potential impact of climate change related legislative and regulatory initiatives; the possibility that acquisitions may not produce anticipated results and result in unforeseen integration difficulties; the volatility of our stock price; our dependence on the soundness of other financial institutions; and other risk factors described from time to time in the Company’s public filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. Relative to the Company’s dividend policy, the payment of cash dividends is subject to the discretion of the Board of Directors and will be determined in light of then-current conditions, including the Company’s earnings, leverage, operations, financial conditions, capital requirements and other factors deemed relevant by the Board of Directors. In the future, the Board of Directors may change the Company’s dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 6 FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN THREE MONTHS ENDED JUNE 30, 2026 AND 2025 (Dollars in Thousands) (Unaudited) Three Months Ended Three Months Ended June 30, 2026 June 30, 2025 Average Balance Interest Annualized Yield/Rate % Average Balance Interest Annualized Yield/Rate % ASSETS Interest-earning assets: Loans $853,798 $12,554 5.90% $857,707 $12,989 6.07% Investment securities 174,606 1,719 3.95% 154,576 1,335 3.46% Federal Home Loan Bank stock 1,429 22 6.18% 1,320 26 7.90% Federal funds sold and securities purchased under reverse repurchase agreements 6,498 62 3.83% 4,850 53 4.38% Interest-bearing deposits in banks 33,320 300 3.61% 40,710 451 4.44% Total interest-earning assets 1,069,651 14,657 5.50% 1,059,163 14,854 5.63% Noninterest-earning assets 64,803 63,179 Total assets $1,134,454 $1,122,342 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest-bearing deposits: Demand deposits $207,143 350 0.68% $203,734 438 0.86% Money market/savings deposits 327,283 1,995 2.44% 273,185 1,743 2.56% Time deposits 311,093 2,571 3.31% 356,602 2,944 3.31% Total interest-bearing deposits 845,519 4,916 2.33% 833,521 5,125 2.47% Noninterest-bearing demand deposits 150,638 — — 155,432 — — Total deposits 996,157 4,916 1.98% 988,953 5,125 2.08% Borrowings 24,281 241 3.98% 22,966 253 4.42% Total funding liabilities 1,020,438 5,157 2.03% 1,011,919 5,378 2.13% Other noninterest-bearing liabilities 9,477 9,100 Shareholders’ equity 104,539 101,323 Total liabilities and shareholders' equity $1,134,454 $1,122,342 Net interest income $9,500 $9,476 Net interest margin 3.56% 3.59%
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 7 FIRST US BANCSHARES, INC. AND SUBSIDIARY NET INTEREST MARGIN SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (Dollars in Thousands) (Unaudited) Six Months Ended Six Months Ended June 30, 2026 June 30, 2025 Average Balance Interest Annualize d Yield/Rate % Average Balance Interest Annualize d Yield/Rate % ASSETS Interest-earning assets: Loans $ 852,519 $ 25,045 5.92% $ 841,210 $ 25,230 6.05% Investment securities 175,154 3,406 3.92% 160,377 2,747 3.45% Federal Home Loan Bank stock 1,113 34 6.16% 1,331 50 7.58% Federal funds sold and securities purchased under reverse repurchase agreements 11,077 214 3.90% 4,850 106 4.41% Interest-bearing deposits in banks 49,603 898 3.65% 33,505 739 4.45% Total interest-earning assets 1,089,46 6 29,597 5.48% 1,041,27 3 28,872 5.59% Noninterest-earning assets 64,351 63,664 Total assets $ 1,153,81 7 $ 1,104,93 7 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest-bearing deposits: Demand deposits $ 208,900 750 0.72% $ 207,909 930 0.90% Money market/savings deposits 328,886 4,123 2.53% 265,160 3,287 2.50% Time deposits 332,281 5,653 3.43% 343,494 5,777 3.39% Total interest-bearing deposits 870,067 10,526 2.44% 816,563 9,994 2.47% Noninterest-bearing demand deposits 150,539 — — 155,363 — — Total deposits 1,020,60 6 10,526 2.08% 971,926 9,994 2.07% Borrowings 17,655 356 4.07% 23,184 505 4.39% Total funding liabilities 1,038,26 1 10,882 2.11% 995,110 10,499 2.13% Other noninterest-bearing liabilities 10,395 9,294 Shareholders’ equity 105,161 100,533 Total liabilities and shareholders' equity $ 1,153,81 7 $ 1,104,93 7 Net interest income $ 18,715 $ 18,373 Net interest margin 3.46% 3.56%
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 8 FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Share and Per Share Data) June 30, December 31, 2026 2025 (Unaudited) ASSETS Cash and due from banks $ 11,707 $ 9,401 Interest-bearing deposits in banks 47,230 64,146 Total cash and cash equivalents 58,937 73,547 Federal funds sold and securities purchased under reverse repurchase agreements 4,850 4,850 Investment securities available-for-sale, at fair value (amortized cost $168,469 and $169,037; net of allowance for credit losses of $- and $-) 165,578 168,075 Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses of $- and $-, (fair value 2026 - $364, 2025 - $449) 381 465 Federal Home Loan Bank stock, at cost 1,779 791 Loans and leases held for investment 860,635 853,018 Less allowance for credit losses on loans and leases 10,882 10,704 Net loans and leases held for investment 849,753 842,314 Premises and equipment, net of accumulated depreciation 27,212 26,284 Cash surrender value of bank-owned life insurance 17,555 17,378 Accrued interest receivable 3,980 3,916 Goodwill and core deposit intangible, net 7,435 7,435 Other real estate owned 175 256 Other assets 9,984 9,474 Total assets $ 1,147,619 $ 1,154,785 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Non-interest-bearing $ 149,800 $ 153,809 Interest-bearing 848,156 874,153 Total deposits 997,956 1,027,962 Accrued interest expense 1,526 2,526 Other liabilities 7,870 7,704 Short-term borrowings 25,000 — Long-term borrowings 10,982 10,945 Total liabilities 1,043,334 1,049,137 Shareholders’ equity: Common stock, par value $0.01 per share, 10,000,000 shares authorized; 8,019,126 and 7,947,303 shares issued, respectively; 5,523,209 and 5,699,696 shares outstanding, respectively 80 79 Additional paid-in capital 16,411 16,005 Accumulated other comprehensive loss, net of tax (1,700) (780) Retained earnings 124,166 121,249 Less treasury stock: 2,495,917 and 2,247,607 shares at cost, respectively (34,672) (30,905) Total shareholders’ equity 104,285 105,648 Total liabilities and shareholders’ equity $ 1,147,619 $ 1,154,785
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 9 FIRST US BANCSHARES, INC. AND SUBSIDIARY INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 12,554 $ 12,989 $ 25,045 $ 25,230 Interest on investment securities 1,719 1,335 3,406 2,747 Interest on deposits in banks 300 451 898 739 Other 84 79 248 156 Total interest income 14,657 14,854 29,597 28,872 Interest expense: Interest on deposits 4,916 5,125 10,526 9,994 Interest on borrowings 241 253 356 505 Total interest expense 5,157 5,378 10,882 10,499 Net interest income 9,500 9,476 18,715 18,373 Provision for credit losses 939 2,717 1,193 3,245 Net interest income after provision for credit losses 8,561 6,759 17,522 15,128 Non-interest income: Net gain on sales and prepayments of investment securities 455 — 458 2 Service and other charges on deposit accounts 277 278 560 566 Lease income 272 269 541 553 Other income, net 314 302 599 603 Total non-interest income 1,318 849 2,158 1,724 Non-interest expense: Salaries and employee benefits 3,898 3,945 7,712 7,681 Net occupancy and equipment 1,016 937 1,987 1,812 Computer services 457 421 794 833 Insurance expense and assessments 408 366 823 750 Fees for professional services 310 470 638 685 Other expense 1,554 1,305 3,030 2,601 Total non-interest expense 7,643 7,444 14,984 14,362 Income before income taxes 2,236 164 4,696 2,490 Provision for income taxes 483 9 998 563 Net income $ 1,753 $ 155 $ 3,698 $ 1,927 Basic net income per share $ 0.31 $ 0.03 $ 0.65 $ 0.33 Diluted net income per share $ 0.31 $ 0.03 $ 0.64 $ 0.32 Dividends per share $ 0.07 $ 0.07 $ 0.14 $ 0.14
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 10 Non-GAAP Financial Measures In addition to the financial results presented in this press release that have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company’s management believes that certain non-GAAP financial measures and ratios are beneficial to the reader. These non-GAAP measures have been provided to enhance overall understanding of the Company’s current financial performance and position. Management believes that these presentations provide meaningful comparisons of financial performance and position in various periods and can be used as a supplement to the GAAP-based measures presented in this press release. The non-GAAP financial results presented should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Management believes that both GAAP measures of the Company’s financial performance and the respective non-GAAP measures should be considered together. The non-GAAP measures and ratios that have been provided in this press release include measures of liquidity, pre-tax pre-provision net revenue, tangible assets and equity, and certain ratios that include tangible assets and equity. Discussion of these measures and ratios is included below, along with reconciliations of such non-GAAP measures to GAAP amounts included in the consolidated financial statements previously presented in this press release. Liquidity Measures The table below provides information combining the Company’s on-balance sheet liquidity with readily available off-balance sheet sources of liquidity as of both June 30, 2026 and December 31, 2025. June 30, 2026 December 31, 2025 (Dollars in Thousands) (Unaudited) (Unaudited) Liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements: Cash and cash equivalents $ 58,937 $ 73,547 Federal funds sold and securities purchased under reverse repurchase agreements 4,850 4,850 Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase agreements 63,787 78,397 Liquidity from pledgable investment securities: Investment securities available-for-sale, at fair value 165,578 168,075 Investment securities held-to-maturity, at amortized cost 381 465 Less: securities pledged (58,409) (58,497) Less: estimated collateral value discounts (10,747) (10,671) Total liquidity from pledgable investment securities 96,803 99,372 Liquidity from unused lendable collateral (loans) at FHLB 9,723 30,504 Liquidity from unused lendable collateral (loans and securities) at FRB 191,593 210,921 Unsecured lines of credit with banks 48,000 48,000 Total readily available liquidity $ 409,906 $ 467,194 The table above calculates readily available liquidity by combining cash and cash equivalents, federal funds sold, securities purchased under reverse repurchase agreements and unencumbered investment security values on the Company’s consolidated balance sheet with off-balance sheet liquidity that is readily available through unused collateral pledged to the FHLB and FRB, as well as unsecured lines of credit with other banks. Liquidity from pledgable investment securities and total readily available liquidity are non-GAAP measures used by management and regulators to analyze a portion of the Company's liquidity. Management uses these measures to evaluate the Company's liquidity position. Pledgable investment securities are considered by management as a readily available source of liquidity since the Company has the ability to pledge the securities with the FHLB or FRB to obtain immediate funding. Both available-for-sale and held-to-maturity securities may be pledged at fair value with the FHLB and through the FRB discount window. The amounts shown as liquidity from pledgable investment securities represent total investment securities as recorded on the consolidated balance sheet, less reductions for securities already pledged and discounts expected to be taken by the lender to determine collateral value.
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 11 The Company’s readily available liquidity position decreased to $409.9 million as of June 30, 2026, compared to $467.2 million as of December 31, 2025 due to a combination of factors, including a reduction in cash and cash equivalents commensurate with efforts to improve balance sheet efficiency, combined with increased usage of secured short-term borrowings as of June 30, 2026. While readily available liquidity decreased comparing June 30, 2026 to December 31, 2025, the Company maintained ample access to liquidity relative to estimated uninsured deposits. Excluding wholesale brokered deposits, as of June 30, 2026, the Bank had approximately 27 thousand deposit accounts with an average balance of approximately $32.2 thousand per account. Estimated uninsured deposits (calculated as deposit amounts per deposit holder in excess of $250 thousand, the maximum amount of federal deposit insurance, and excluding deposits secured by pledged assets) totaled $176.7 million, or 17.6 % of total deposits, as of June 30, 2026. As of December 31, 2025, estimated uninsured deposits totaled $218.0 million, or 21.2% of total deposits. Pre-tax Pre-provision Net Revenue The Company utilizes pre-tax pre-provision net revenue (“PPNR”) as a supplemental measure of profitability in addition to earnings measures defined by GAAP, including income before income taxes and net income. PPNR measures the Company’s profitability before accounting for the provisions for credit losses and income taxes. Management believes PPNR provides a means to effectively measure the Company’s core operating profitability on a trended basis. In management’s experience, PPNR and PPNR as a percentage of average assets are commonly used by stock analysts and investors in conjunction with their evaluation of financial institutions. The table below reconciles the Company’s calculation of PPNR to amounts recorded in accordance with GAAP. Quarter Ended Six Months Ended 2026 2025 2026 2025 June 30, March 31, December 31, September 30, June 30, June 30, June 30, (Dollars in Thousands) (Unaudited Reconciliation) Net income $1,753 $1,945 $2,129 $1,936 $155 $3,698 $1,927 Add: Provision for income taxes 483 515 798 583 9 998 563 Add: Provision for credit losses 939 254 220 566 2,717 1,193 3,245 Pre-tax pre-provision net revenue $3,175 $2,714 $3,147 $3,085 $2,881 $5,889 $5,735 Average assets $1,134,454 $1,173,390 $1,145,476 $1,130,259 $1,122,342 $1,153,817 $1,104,937 PPNR as a percentage of average assets (annualized) 1.12% 0.94% 1.09% 1.08% 1.03% 1.03% 1.05% Tangible Balances and Measures In addition to capital ratios defined by GAAP and banking regulators, the Company utilizes various tangible common equity measures when evaluating capital utilization and adequacy. These measures, which are presented in the financial tables in this press release, may also include calculations of tangible assets. As defined by the Company, tangible common equity represents shareholders’ equity less goodwill and identifiable intangible assets, while tangible assets represent total assets less goodwill and identifiable intangible assets. Management believes that the measures of tangible equity are important because they reflect the level of capital available to withstand unexpected market conditions. In addition, presentation of these measures allows readers to compare certain aspects of the Company’s capitalization to other organizations. In management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets that typically result from the use of the purchase accounting method in accounting for mergers and acquisitions. These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these measures, management believes that there are no comparable GAAP financial measures to the tangible common equity ratios that the Company utilizes. Despite the importance of these measures to the Company, there are no standardized definitions for the measures, and, therefore, the Company’s calculations may not be comparable with those of other organizations. In addition, there may be limits to the usefulness of these measures to investors. Accordingly, management encourages readers to consider the Company’s consolidated financial statements in
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First US Bancshares, Inc. Reports Second Quarter 2026 Results July 29, 2026 12 their entirety and not to rely on any single financial measure. The table below reconciles the Company’s calculations of these measures to amounts reported in accordance with GAAP. Quarter Ended Six Months Ended 2026 2025 2026 2025 June 30, March 31, December 31, September 30, June 30, June 30, June 30, (Dollars in Thousands, Except Per Share Data) (Unaudited Reconciliation) TANGIBLE BALANCES Total assets $1,147,619 $1,165,236 $1,154,785 $1,147,175 $1,143,379 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible — — — — 12 Tangible assets (a) $1,140,184 $1,157,801 $1,147,350 $1,139,740 $1,135,932 Total shareholders’ equity $104,285 $104,634 $105,648 $104,238 $101,892 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible — — — — 12 Tangible common equity (b) $96,850 $97,199 $98,213 $96,803 $94,445 Average shareholders’ equity $104,539 $105,790 $105,067 $102,737 $101,323 $105,161 $100,533 Less: Average goodwill 7,435 7,435 7,435 7,435 7,435 7,435 7,435 Less: Average core deposit intangible — — — 4 21 — 30 Average tangible shareholders’ equity (c) $97,104 $98,355 $97,632 $95,298 $93,867 $97,726 $93,068 Net income (d) $1,753 $1,945 $2,129 $1,936 $155 $3,698 $1,927 Common shares outstanding (in thousands) (e) 5,523 5,604 5,700 5,765 5,755 TANGIBLE MEASURES Tangible book value per common share (b)/( e) $17.54 $17.34 $17.23 $16.79 $16.41 Tangible common equity to tangible assets (b)/( a) 8.49% 8.40% 8.56% 8.49% 8.31% Return on average tangible common equity (annualized) (1) 7.24% 8.02% 8.65% 8.06% 0.66% 7.63% 4.17% (1) Calculation of Return on average tangible common equity (annualized) = ((net income (d) / number of days in period) * number of days in year) / average tangible shareholders’ equity (c) Contact: Thomas S. Elley 205-582-1200