FIRST US BANCSHARES, INC. REPORTS THIRD QUARTER 2022 RESULTS

BIRMINGHAM, Ala., Oct. 26, 2022

BIRMINGHAM, Ala., Oct. 26, 2022 /PRNewswire/ -- First US Bancshares, Inc. (Nasdaq: FUSB) (the "Company"), the parent company of First US Bank (the "Bank"), today reported net income of $1.9 million, or $0.29 per diluted share, for the quarter ended September 30, 2022 ("3Q2022"), compared to $0.8 million, or $0.13 per diluted share, for the quarter ended September 30, 2021 ("3Q2021") and $1.4 million, or $0.22 per diluted share, for the quarter ended June 30, 2022 ("2Q2022").  Net income totaled $4.6 million for the nine months ended September 30, 2022, compared to $2.7 million for the nine months ended September 30, 2021.  Diluted earnings per share totaled $0.71 for the nine months ended September 30, 2022, compared to $0.41 per diluted share during the corresponding period of 2021. 

Earnings improvement, comparing both 3Q2022 and the nine months ended September 30, 2022 to corresponding periods in 2021, 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 $1.5 million, or 17.7%, comparing 3Q2022 to 3Q2021 and by $4.4 million, or 17.3%, comparing the nine months ended September 30, 2022, to the nine months ended September 30, 2021.  Comparing 3Q2022 to 2Q2022, non-interest expense decreased by $0.2 million, or 2.2%.

"The business simplification efforts that we launched in 2021, combined with solid loan growth during the past two quarters have contributed to strong earnings growth both in the third quarter and for the year," stated James F. House, President and CEO of the Company.  "As we move forward, our team remains very focused on the economic challenges that have emerged, including the potential impacts of inflation, rising interest rates and a slowing economy on our borrowers and depositors.  We believe that our balance sheet is well-positioned for the volatile environment that we are entering," continued Mr. House. 

Other Second 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 September 30, 2022.