FIRST US BANCSHARES, INC. REPORTS 60.6% YEAR-OVER-YEAR DILUTED EPS GROWTH

BIRMINGHAM, Ala., Jan. 25, 2023

BIRMINGHAM, Ala., Jan. 25, 2023 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $2.2 million, or $0.35 per diluted share, for the quarter ended December 31, 2022 ("4Q2022"), compared to $1.9 million, or $0.29 per diluted share, for the quarter ended September 30, 2022 ("3Q2022") and $1.7 million, or $0.25 per diluted share, for the quarter ended December 31, 2021 ("4Q2021"). For the year ended December 31, 2022, the Company's net income totaled $6.9 million, or $1.06 per diluted share, compared to $4.5 million, or $0.66 per diluted share, for the year ended December 31, 2021, an increase of 60.6% in diluted earnings per share.

Comparing 2022 to 2021, earnings improvement was driven primarily by reductions in non-interest expense following strategic initiatives that were initiated by the Company beginning in the third quarter of 2021. The strategic initiatives included the cessation of new business development at the Bank's wholly owned subsidiary, Acceptance Loan Company, Inc. ("ALC"), as well as efforts to reorganize the Bank's retail banking, technology and deposit operations functions. As a result of these efforts, non-interest expense was reduced by $4.7 million, or 14.3%, comparing 2022 to 2021.

"We are pleased to wrap up a very strong year of earnings growth," stated James F. House, President and CEO of the Company.  "The strategic initiatives that we began 15 to 18 months ago to improve both operating efficiency and asset quality are reaping significant rewards in the current environment.  The coming year is expected to present many challenges as we continue to face a rising interest rate environment and a slowing economy.  However, we continue to believe that our balance sheet is well-positioned for the volatile environment in which we find ourselves," continued Mr. House.  

Net income grew by $0.4 million, or 19.8%, in 4Q2022, compared to 3Q2022 due, in part, to growth in net interest income. Quarter-over-quarter net interest margin improved by 17 basis points in 4Q2022 compared to 3Q2022.  In addition, the Company's provision for loan and lease losses decreased by $0.6 million as loan growth slowed, particularly in the indirect consumer category, during the last quarter of the year.

Other Fourth Quarter Financial Highlights

Loan Growth – The table below summarizes loan balances by portfolio category at the end of each of the most recent five quarters as of December 31, 2022.