First US Bancshares, Inc. Reports Third Quarter and Year-to-Date 2026 Results: Year-to-Date Diluted EPS Improves by 56%

BIRMINGHAM, Ala., Oct. 28, 2026 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $2.0 million, or $0.36 per diluted share, for the quarter ended September 30, 2026 ("3Q2026"), compared to $1.8 million, or $0.31 per diluted share, for the quarter ended June 30, 2026 ("2Q2026") and $1.9 million, or $0.32 per diluted share, for the quarter ended September 30, 2025 ("3Q2025"). For the nine months ended September 30, 2026, net income totaled $5.7 million, or $1.00 per diluted share, compared to $3.9 million, or $0.64 per diluted share, for the nine months ended September 30, 2025.

The table below summarizes selected financial data for each of the periods presented.

Quarter Ended

Nine Months Ended

2026

2025

2026

2025

September

30,

June

30,

March

31,

December

31,

September

30,

September

30,

September

30,

Results of Operations: (Dollars in Thousands)

(Unaudited)

Interest income

15,107

14,657

14,940

15,262

15,281

44,704

44,153

Interest expense

5,257

5,157

5,725

5,839

5,619

16,139

16,118

Net interest income

9,850

9,500

9,215

9,423

9,662

28,565

28,035

Provision for credit losses

586

939

254

220

566

1,779

3,811

Net interest income after provision for credit losses

9,264

8,561

8,961

9,203

9,096

26,786

24,224

Non-interest income

967

1,318

840

995

860

3,125

2,584

Non-interest expense

7,713

7,643

7,341

7,271

7,437

22,697

21,799

Income before income taxes

2,518

2,236

2,460

2,927

2,519

7,214

5,009

Provision for income taxes

558

483

515

798

583

1,556

1,146

Net income

1,960

1,753

1,945

2,129

1,936

5,658

3,863

Per Share Data:

Basic net income per share

0.36

0.31

0.34

0.37

0.33

1.01

0.66

Diluted net income per share

0.36

0.31

0.33

0.36

0.32

1.00

0.64

Dividends per share

0.07

0.21

Key Measures (Period End):

Total assets

1,164,835

1,147,619

1,165,236

1,154,785

1,147,175

Tangible assets (1)

1,157,400

1,140,184

1,157,801

1,147,350

1,139,740

Total loans

845,043

860,635

843,697

853,018

867,520

Allowance for credit losses on loans and leases

10,995

10,882

10,536

10,704

10,700

Investment securities, net

194,705

165,959

181,545

168,540

164,493

Total deposits

1,015,067

997,956

1,038,849

1,027,962

1,002,472

Short-term borrowings

30,000

25,000

—

20,000

Long-term borrowings

11,000

10,982

10,963

10,945

10,927

Total shareholders' equity

96,617

104,285

104,634

105,648

104,238

Tangible common equity (1)

89,182

96,850

97,199

98,213

96,803

Book value per common share

18.82

18.88

18.67

18.53

18.08

Tangible book value per common share (1)

17.37

17.54

17.34

17.23

16.79

Common shares outstanding

5,134,709

5,523,209

5,604,123

5,699,696

5,765,137

Key Ratios:

Return on average assets (annualized)

0.69

0.62

0.67

0.74

0.68

0.66

0.46

Return on average common equity (annualized)

7.60

6.73

7.46

8.04

7.48

7.26

5.10

Return on average tangible common equity

(annualized) (1)

8.19

7.24

8.02

8.65

8.06

7.82

5.51

Pre-tax pre-provision net revenue to average assets

(annualized) (1)

1.09

1.12

0.94

1.09

1.08

1.05

1.06

Net interest margin

3.66

3.56

3.37

3.46

3.60

3.53

3.57

Efficiency ratio (2)

71.3

70.7

73.0

69.8

70.7

71.6

71.2

Total loans to deposits

83.2

86.2

81.2

83.0

86.5

Total loans to assets

72.5

75.0

72.4

73.9

75.6

Common equity to total assets

8.29

9.09

8.98

9.15

9.09

Tangible common equity to tangible assets (1)

7.71

8.49

8.40

8.56

8.49

Tier 1 leverage ratio (3)

9.16

8.85

9.03

9.19

ACL on loans and leases as % of total loans

1.30

1.26

1.25

1.23

Nonperforming assets as % of total assets

0.14

0.17

0.16

0.14

0.19

Net charge-offs as a % of average loans (annualized)

0.22

0.30

0.23

0.08

0.61

0.25

0.52

(1) Refer to the Non-GAAP Financial Measures section for a reconciliation of this non-GAAP measure to a GAAP amount.

(2) Efficiency ratio = non-interest expense / (net interest income + non-interest income)

(3) First US Bank Tier 1 leverage ratio

CEO Commentary

"We are pleased to report higher earnings and continued expansion of net interest margin during the third quarter," stated James F. House, President and CEO of the Company. "Net income increased by 11.8% and diluted earnings per share ("EPS") by 16.1% compared to the second quarter. Year-to-date net income increased by 46.5% and diluted earnings per share by 56.3% compared to the same period last year. The improvement in net income along with a successful share repurchase campaign during 2026, contributed to strong earnings per share improvement. Our net interest margin improved to 3.66% for the third quarter, while nonperforming assets and net charge-offs as a percentage of average loans declined from the second quarter. Growth in our indirect consumer portfolio continued, while expected project payoffs in multi-family and construction lending contributed to a decrease in total loans. We remain focused on disciplined pricing and credit quality while maintaining flexibility to respond to opportunities in our markets," 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

September

30,

June

30,

March

31,

December

31,

September

30,

(Dollars in Thousands)

(Unaudited)

Real estate loans:

Construction, land development and other land loans

$35,778

$41,062

$27,236

$32,618

$38,560

Secured by 1-4 family residential properties

63,282

63,093

65,460

66,996

67,620

Secured by multi-family residential properties

98,613

119,362

124,826

117,769

112,763

Secured by non-residential commercial real estate

181,878

181,480

189,408

200,699

211,400

Commercial and industrial loans ("C&I")

43,528

46,834

46,665

48,360

46,562

Consumer loans:

Direct

4,441

4,379

4,362

4,844

4,999

Indirect

417,523

404,425

385,740

381,732

385,616

Total loans and leases held for investment

845,043

860,635

843,697

853,018

867,520

Allowance for credit losses ("ACL") on loans and

leases

10,995

10,882

10,536

10,704

10,700

Net loans and leases held for investment

$834,048

$849,753

$833,161

$842,314

$856,820

Total loans decreased by $15.6 million, or 1.8%, to $845.0 million during 3Q2026. Expected project payoffs contributed to declines of $20.7 million in multi-family residential loans and $5.3 million in construction, land development and other land loans. Commercial and industrial loans decreased by $3.3 million. These decreases were partially offset by growth in indirect consumer loans and modest increases in the other portfolio categories. While the Company has experienced substantial payoffs of real estate loans during 2026 (including construction, multi-family and commercial real estate), the commercial lending team is strategically focused on building and maintaining commercial lending relationships that are expected to assist future loan growth. During the nine months ended September 30, 2026, total loans decreased by $8.0 million, or 0.9%. Average total loans for the nine-month period were $854.3 million, an increase of $2.7 million, or 0.3%, compared to the corresponding period of 2025.

The Company's indirect lending platform focuses on borrowers at the higher end of the credit spectrum, as reflected in the portfolio's weighted average credit score at the time of funding of 785 as of September 30, 2026. Indirect consumer loans increased by $13.1 million, or 3.2%, during 3Q2026 and by $35.8 million, or 9.4%, during the nine months ended September 30, 2026. Collateral primarily consists of boats, recreational vehicles, campers, horse trailers and cargo trailers.

The average yield on total loans was 5.98% in 3Q2026, compared to 5.90% in 2Q2026 and 6.10% in 3Q2025. For the nine months ended September 30, 2026, the average yield on loans was 5.94%, compared to 6.07% for the corresponding period of 2025.

Deposits – Total deposits increased by $17.1 million, or 1.7%, to $1.015 billion during 3Q2026, compared to $998.0 million as of June 30, 2026. Compared to December 31, 2025, total deposits decreased by $12.9 million, or 1.3%, reflecting a $21.9 million decrease in wholesale brokered deposits, partially offset by growth in non-wholesale deposits. Excluding the decrease in brokered deposits, total deposits increased by $18.9 million, or 2.2%, during 3Q2026 and by $9.0 million, or 1.0%, comparing September 30, 2026 to December 31, 2025. Non-interest-bearing deposits totaled $162.3 million, or 16.0% of total deposits, as of September 30, 2026, compared to $153.8 million, or 15.0% of total deposits, as of December 31, 2025. Core deposits, which exclude time deposits of $250 thousand or more and all wholesale brokered deposits, totaled $844.6 million, or 83.2% of total deposits, as of September 30, 2026, compared to $838.3 million, or 81.6% of total deposits, as of December 31, 2025. The average rate on total deposits was 1.99% in 3Q2026, compared to 1.98% in 2Q2026 and 2.14% in 3Q2025. For the nine months ended September 30, 2026, the average rate on total deposits was 2.05%, compared to 2.10% for the corresponding period of 2025.

Cash and Investment Securities – As of September 30, 2026, the Company held cash, federal funds sold and securities purchased under reverse repurchase agreements totaling $66.4 million, or 5.7% 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 $194.7 million as of September 30, 2026, compared to $168.5 million as of December 31, 2025. During the nine months ended September 30, 2026, the Company purchased $71.8 million in investment securities, of which $46.4 million were purchased in 3Q2026. These purchases, 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 increased to 4.17% in 3Q2026, compared to 3.95% in 2Q2026 and 3.65% in 3Q2025. For the nine months ended September 30, 2026, the average yield on investment securities was 4.00%, compared to 3.52% for the corresponding period of 2025. As of September 30, 2026, the expected average life of securities in the investment portfolio was 4.0 years, compared to 3.7 years as of December 31, 2025.

Net Interest Income and Margin – Net interest income totaled $9.9 million in 3Q2026, reflecting an increase of $350 thousand, or 3.7%, compared to 2Q2026 and an increase of $188 thousand, or 1.9%, compared to 3Q2025. Net interest margin increased to 3.66% in 3Q2026, compared to 3.56% in 2Q2026 and 3.60% in 3Q2025. The sequential improvement reflected higher yields on loans and investment securities, while the average rate on total deposits remained relatively stable. Compared to 3Q2025, lower deposit costs and a higher yield on investment securities more than offset a lower loan yield. For the nine months ended September 30, 2026, net interest income totaled $28.6 million, reflecting an increase of $530 thousand, or 1.9%, compared to the corresponding period of 2025. Net interest margin was 3.53% for the nine-month period, compared to 3.57% for the corresponding period of 2025, reflecting lower loan yields that were partially offset by higher investment securities yields and lower deposit costs.

Asset Quality – Nonperforming assets, including loans in non-accrual status, other real estate owned and repossessed assets, totaled $1.7 million as of September 30, 2026, compared to $1.9 million as of June 30, 2026 and $1.6 million as of December 31, 2025. As a percentage of total assets, nonperforming assets represented 0.14% of total assets as of September 30, 2026, compared to 0.17% as of June 30, 2026 and 0.14% as of December 31, 2025. Annualized net charge-offs as a percentage of average loans were 0.22% in 3Q2026, compared to 0.30% in 2Q2026 and 0.61% in 3Q2025. For the nine months ended September 30, 2026, annualized net charge-offs as a percentage of average loans were 0.25%, compared to 0.52% for the corresponding period of 2025. The year-over-year improvement reflected, in part, the absence of a $2.2 million charge-off of an individually evaluated commercial loan recorded in 2025.

Provision for Credit Losses – During 3Q2026, the Company recorded a provision for credit losses totaling $586 thousand, compared to $939 thousand in 2Q2026 and $566 thousand in 3Q2025. For the nine months ended September 30, 2026, the provision for credit losses totaled $1.8 million, compared to $3.8 million for the corresponding period of 2025. The year-over-year decrease resulted primarily from provisioning for specifically identified commercial loans in 2025, which were resolved by the end of 2025 and, accordingly, the same level of provisioning was not repeated during the nine months ended September 30, 2026. The Company's ACL on loans and leases totaled $11.0 million, or 1.30% of total loans, as of September 30, 2026, compared to $10.9 million, or 1.26%, as of June 30, 2026 and $10.7 million, or 1.25%, as of December 31, 2025. The increase in the ACL as a percentage of total loans during both the three- and nine-month periods ended September 30, 2026 reflected changes in loan portfolio composition, including more prominent growth in indirect consumer loans, which require higher credit allowances than other loan categories, as well as updated economic forecast data released in 3Q2026. While management believes that the ACL is adequate to absorb credit losses within the Company's loan portfolio, inherent uncertainty exists regarding the ultimate impact of geopolitical and economic matters, including prospective inflation, unemployment levels, tariffs and consumer affordability.

Pre-tax Pre-provision Net Revenue ("PPNR") – PPNR totaled $3.1 million in 3Q2026, compared to $3.2 million in 2Q2026 and $3.1 million in 3Q2025. As a percentage of average assets, PPNR was 1.09% (annualized) in 3Q2026, compared to 1.12% (annualized) in 2Q2026 and 1.08% (annualized) in 3Q2025. For the nine months ended September 30, 2026, PPNR totaled $9.0 million, or 1.05% (annualized) of average assets, compared to $8.8 million, or 1.06% (annualized) of average assets, for the corresponding period of 2025. PPNR is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section for a reconciliation of PPNR to net income.

Non-interest Income – Non-interest income totaled $967 thousand in 3Q2026, compared to $1.3 million in 2Q2026 and $860 thousand in 3Q2025. The sequential decrease reflected lower gains on sales and prepayments of investment securities, while the increase compared to 3Q2025 reflected higher service and other charges on deposit accounts and other income. For the nine months ended September 30, 2026, non-interest income totaled $3.1 million, compared to $2.6 million for the corresponding period of 2025, reflecting an increase of $541 thousand. Net gains on sales and prepayments of investment securities of $463 thousand accounted for most of the year-to-date increase.

Non-interest Expense – Non-interest expense totaled $7.7 million in 3Q2026, compared to $7.6 million in 2Q2026 and $7.4 million in 3Q2025. The increase of $276 thousand compared to 3Q2025 resulted primarily from a $306 thousand increase in salaries and employee benefits, partially offset by lower fees for professional services and net occupancy and equipment expense. For the nine months ended September 30, 2026, non-interest expense totaled $22.7 million, compared to $21.8 million for the corresponding period of 2025. The year-to-date increase of $898 thousand reflected an increase of $451 thousand in other expenses primarily associated with losses on sale of repossessed assets, and higher telephone and legal expenses. In addition, salaries and employee benefits increased by $337 thousand, net occupancy and equipment expense increased by $137 thousand, and insurance expense and assessments increased by $75 thousand, partially offset by lower fees for professional services and computer services expense.

Shareholders' Equity – As of September 30, 2026, shareholders' equity totaled $96.6 million, or 8.29% 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 nine months ended September 30, 2026, the increase was fully offset by share repurchases during the period, combined with an increase in the Company's accumulated other comprehensive loss resulting from increases in market interest rates comparing September 30, 2026 to December 31, 2025. The Company's ratio of tangible common equity to tangible assets was 7.71% as of September 30, 2026, compared to 8.56% as of December 31, 2025.

Cash Dividend – In 3Q2026, the Company declared a cash dividend of $0.07 per share on its common stock, consistent with the dividends declared in each of the first two quarters of 2026 and all four quarters of 2025. Dividends declared for the nine months ended September 30, 2026 totaled $0.21 per share, consistent with the corresponding period of 2025.

Share Repurchases – During 3Q2026, the Company completed the repurchase of 390,000 shares of its common stock at a weighted average price of $16.43 per share, bringing total share repurchases for the nine months ended September 30, 2026, to 627,500 shares at a weighted average price of $16.02 per share. All repurchases were completed under the Company's previously announced share repurchase program, which was expanded in 2025. As of September 30, 2026, 1,157,313 shares remained available for repurchase under the program.

Regulatory Capital – During 3Q2026, 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 September 30, 2026, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 11.00%, its total capital ratio was 12.20%, and its Tier 1 leverage ratio was 9.16%.

Liquidity – As of September 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, Federal Home Loan Bank advances, the Federal Reserve Board's discount window, and wholesale brokered deposits. Refer to the Non-GAAP Financial Measures section for additional discussion of measures of the Company's liquidity.

Banking Center Growth – The Company expanded its banking center footprint during 2Q2026 with the opening of a new office in Daphne, Alabama. The location serves as the Bank's initial deposit gathering facility in the Daphne/Mobile area. The Company also purchased an office in Orange Beach, Alabama, during 2Q2026, which is expected to serve as a banking center following the completion of renovations. The Orange Beach 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 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.

FIRST US BANCSHARES, INC. AND SUBSIDIARY

NET INTEREST MARGIN

THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(Dollars in Thousands)

(Unaudited)

Three Months Ended

September 30, 2026

September 30, 2025

Average

Balance

Interest

Annualized

Yield/Rate

Average

Balance

Interest

Annualized

Yield/Rate

ASSETS

Interest-earning assets:

Loans

$857,791

$12,936

5.98 %

$871,926

$13,413

6.10 %

Investment securities

171,365

1,801

4.17 %

151,303

1,391

3.65 %

Federal Home Loan Bank stock

1,639

6.05 %

1,328

6.27 %

Federal funds sold and securities purchased under

reverse repurchase agreements

4,850

3.76 %

4,850

4.42 %

Interest-bearing deposits in banks

32,905

299

3.61 %

36,087

402

4.42 %

Total interest-earning assets

1,068,550

15,107

5.61 %

1,065,494

15,281

5.69 %

Noninterest-earning assets

66,032

64,765

Total assets

$1,134,582

$1,130,259

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits:

Demand deposits

$200,758

339

0.67 %

$195,955

386

0.78 %

Money market/savings deposits

319,224

1,940

2.41 %

300,736

2,068

2.73 %

Time deposits

320,871

2,690

3.33 %

345,916

2,914

3.34 %

Total interest-bearing deposits

840,853

4,969

2.34 %

842,607

5,368

2.53 %

Noninterest-bearing demand deposits

152,062

—

152,474

—

Total deposits

992,915

4,969

1.99 %

995,081

5,368

2.14 %

Borrowings

28,665

288

3.99 %

22,472

251

4.43 %

Total funding liabilities

1,021,580

5,257

2.04 %

1,017,553

5,619

2.19 %

Other noninterest-bearing liabilities

10,624

9,969

Shareholders' equity

102,378

102,737

Total liabilities and shareholders' equity

$1,134,582

$1,130,259

Net interest income

$9,850

$9,662

Net interest margin

3.66 %

3.60 %

FIRST US BANCSHARES, INC. AND SUBSIDIARY

NET INTEREST MARGIN

NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(Dollars in Thousands)

(Unaudited)

Nine Months Ended

September 30, 2026

September 30, 2025

Average

Balance

Interest

Annualized

Yield/Rate

Average

Balance

Interest

Annualized

Yield/Rate

ASSETS

Interest-earning assets:

Loans

854,295

37,981

5.94

851,561

38,643

6.07

Investment securities

173,877

5,207

4.00

157,319

4,138

3.52

Federal Home Loan Bank stock

1,291

6.11

1,330

7.14

Federal funds sold and securities purchased under

reverse repurchase agreements

8,978

260

3.87

4,850

160

4.41

Interest-bearing deposits in banks

43,976

1,197

3.64

34,375

1,141

4.44

Total interest-earning assets

1,082,417

44,704

5.52

1,049,435

44,153

5.63

Noninterest-earning assets

64,917

64,034

Total assets

1,147,334

1,113,469

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits:

Demand deposits

206,156

1,088

0.71

203,880

1,317

0.86

Money market/savings deposits

325,630

6,063

2.49

277,149

5,355

2.58

Time deposits

328,436

8,344

3.40

344,310

8,690

3.37

Total interest-bearing deposits

860,222

15,495

2.41

825,339

15,362

2.49

Noninterest-bearing demand deposits

151,052

—

154,390

—

Total deposits

1,011,274

15,495

2.05

979,729

15,362

2.10

Borrowings

21,365

644

4.03

22,944

756

4.41

Total funding liabilities

1,032,639

16,139

2.09

1,002,673

16,118

2.15

Other noninterest-bearing liabilities

10,471

9,521

Shareholders' equity

104,224

101,275

Total liabilities and shareholders' equity

1,147,334

1,113,469

Net interest income

28,565

28,035

Net interest margin

3.53

3.57

FIRST US BANCSHARES, INC. AND SUBSIDIARY

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands, Except Share and Per Share Data)

September 30,

December 31,

2026

2025

(Unaudited)

ASSETS

Cash and due from banks

10,858

9,401

Interest-bearing deposits in banks

50,722

64,146

Total cash and cash equivalents

61,580

73,547

Federal funds sold and securities purchased under reverse repurchase agreements

4,850

Investment securities available-for-sale, at fair value (amortized cost $202,314 and

$169,037; net of allowance for credit losses of $- and $-)

194,352

168,075

Investment securities held-to-maturity, at amortized cost, net of allowance for credit

losses of $- and $-, (fair value 2026 - $333, 2025 - $449)

353

465

Federal Home Loan Bank stock, at cost

2,016

791

Loans and leases held for investment

845,043

853,018

Less allowance for credit losses on loans and leases

10,995

10,704

Net loans and leases held for investment

834,048

842,314

Premises and equipment, net of accumulated depreciation

27,043

26,284

Cash surrender value of bank-owned life insurance

17,645

17,378

Accrued interest receivable

3,903

3,916

Goodwill and core deposit intangible, net

7,435

Other real estate owned

134

256

Other assets

11,476

9,474

Total assets

1,164,835

1,154,785

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Non-interest-bearing

162,270

153,809

Interest-bearing

852,797

874,153

Total deposits

1,015,067

1,027,962

Accrued interest expense

1,493

2,526

Other liabilities

10,658

7,704

Short-term borrowings

30,000

—

Long-term borrowings

11,000

10,945

Total liabilities

1,068,218

1,049,137

Shareholders' equity:

Common stock, par value $0.01 per share, 10,000,000 shares authorized; 8,024,422 and

7,947,303 shares issued, respectively; 5,134,709 and 5,699,696 shares outstanding,

respectively

Additional paid-in capital

16,579

16,005

Accumulated other comprehensive loss, net of tax

(4,622)

(780)

Retained earnings

125,764

121,249

Less treasury stock: 2,889,713 and 2,247,607 shares at cost, respectively

(41,184)

(30,905)

Total shareholders' equity

96,617

105,648

Total liabilities and shareholders' equity

1,164,835

1,154,785

FIRST US BANCSHARES, INC. AND SUBSIDIARY

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

(Unaudited)

Interest income:

Interest and fees on loans

12,936

13,413

37,981

38,643

Interest on investment securities

1,801

1,391

5,207

4,138

Interest on deposits in banks

299

402

1,197

1,141

Other

319

231

Total interest income

15,107

15,281

44,704

44,153

Interest expense:

Interest on deposits

4,969

5,368

15,495

15,362

Interest on borrowings

288

251

644

756

Total interest expense

5,257

5,619

16,139

16,118

Net interest income

9,850

9,662

28,565

28,035

Provision for credit losses

586

566

1,779

3,811

Net interest income after provision for credit losses

9,264

9,096

26,786

24,224

Non-interest income:

Net gain on sales and prepayments of investment securities

463

Service and other charges on deposit accounts

321

289

881

855

Lease income

271

262

812

815

Other income, net

370

298

969

901

Total non-interest income

967

860

3,125

2,584

Non-interest expense:

Salaries and employee benefits

4,065

3,759

11,777

11,440

Net occupancy and equipment

949

987

2,936

2,799

Computer services

467

431

1,261

1,264

Insurance expense and assessments

350

348

1,173

1,098

Fees for professional services

311

363

949

1,048

Other expense

1,571

1,549

4,601

4,150

Total non-interest expense

7,713

7,437

22,697

21,799

Income before income taxes

2,518

2,519

7,214

5,009

Provision for income taxes

558

583

1,556

1,146

Net income

1,960

1,936

5,658

3,863

Basic net income per share

0.36

0.33

1.01

0.66

Diluted net income per share

0.36

0.32

1.00

0.64

Dividends per share

0.07

0.21

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 September 30, 2026 and December 31, 2025.

September 30,

2026

December 31,

2025

(Dollars in Thousands)

(Unaudited)

Liquidity from cash, federal funds sold and securities purchased under reverse repurchase

agreements:

Cash and cash equivalents

61,580

73,547

Federal funds sold and securities purchased under reverse repurchase agreements

4,850

Total liquidity from cash, federal funds sold and securities purchased under reverse repurchase

agreements

66,430

78,397

Liquidity from pledgable investment securities:

Investment securities available-for-sale, at fair value

194,352

168,075

Investment securities held-to-maturity, at amortized cost

353

465

Less: securities pledged

(79,671)

(58,497)

Less: estimated collateral value discounts

(10,778)

(10,671)

Total liquidity from pledgable investment securities

104,256

99,372

Liquidity from unused lendable collateral (loans) at FHLB

23,866

30,504

Liquidity from unused lendable collateral (loans and securities) at FRB

221,361

210,921

Unsecured lines of credit with banks

48,000

Total readily available liquidity

463,913

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 Federal Home Loan Bank (FHLB) and Federal Reserve Bank (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.

The Company's readily available liquidity position decreased to $463.9 million as of September 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 and increased usage of secured short-term borrowings as of September 30, 2026. While readily available liquidity decreased comparing September 30, 2026 to December 31, 2025, management believes that the Company maintained ample access to liquidity relative to estimated uninsured deposits. Excluding wholesale brokered deposits, as of September 30, 2026, the Bank had approximately 27 thousand deposit accounts with an average balance of approximately $32.9 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 $190.0 million, or 18.7% of total deposits, as of September 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 (annualized) 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

Nine Months Ended

2026

2025

2026

2025

September

30,

June

30,

March

31,

December

31,

September

30,

September

30,

September

30,

(Dollars in Thousands)

(Unaudited Reconciliation)

Net income

$1,960

$1,753

$1,945

$2,129

$1,936

$5,658

$3,863

Add: Provision for income taxes

558

483

515

798

583

1,556

1,146

Add: Provision for credit losses

586

939

254

220

566

1,779

3,811

Pre-tax pre-provision net

revenue

$3,104

$3,175

$2,714

$3,147

$3,085

$8,993

$8,820

Average assets

$1,134,582

$1,134,454

$1,173,390

$1,145,476

$1,130,259

$1,147,334

$1,113,469

PPNR as a percentage of average

assets (annualized)

1.09 %

1.12 %

0.94 %

1.09 %

1.08 %

1.05 %

1.06 %

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 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

Nine Months Ended

2026

2025

2026

2025

September

30,

June

30,

March

31,

December

31,

September

30,

September

30,

September

30,

(Dollars in Thousands, Except Per Share Data)

(Unaudited Reconciliation)

TANGIBLE BALANCES

Total assets

$1,164,835

$1,147,619

$1,165,236

$1,154,785

$1,147,175

Less: Goodwill

7,435

Less: Core deposit intangible

—

Tangible assets

(a)

$1,157,400

$1,140,184

$1,157,801

$1,147,350

$1,139,740

Total shareholders' equity

$96,617

$104,285

$104,634

$105,648

$104,238

Less: Goodwill

7,435

Less: Core deposit intangible

—

Tangible common equity

(b)

$89,182

$96,850

$97,199

$98,213

$96,803

Average shareholders' equity

$102,378

$104,539

$105,790

$105,067

$102,737

$104,224

$101,275

Less: Average goodwill

7,435

Less: Average core deposit intangible

—

Average tangible shareholders'

equity

(c)

$94,943

$97,104

$98,355

$97,632

$95,298

$96,789

$93,819

Net income

(d)

$1,960

$1,753

$1,945

$2,129

$1,936

$5,658

$3,863

Common shares outstanding (in

thousands)

(e)

5,135

5,523

5,604

5,700

5,765

TANGIBLE MEASURES

Tangible book value per common

(b)/(e)

$17.37

$17.54

$17.34

$17.23

$16.79

Tangible common equity to

tangible assets

(b)/(a)

7.71 %

8.49 %

8.40 %

8.56 %

8.49 %

Return on average tangible

common equity (annualized)

(1)

8.19 %

7.24 %

8.02 %

8.65 %

8.06 %

7.82 %

5.51 %

(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

SOURCE First US Bancshares, Inc.