Business
First US Bancshares, Inc. Announces First Quarter 2020 Results
BIRMINGHAM, Ala., May 04, 2020 (GLOBE NEWSWIRE) -- First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”),
About this update from First Us Bancshares, Inc.
[{"type":"text","content":"BIRMINGHAM, Ala., May 04, 2020 (GLOBE NEWSWIRE) -- First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank (the “Bank”), today reported net income of $0.8 million, or $0.13 per diluted share, for the quarter ended March 31, 2020, compared to $1.2 million, or $0.18 per diluted share, for both of the quarters ended December 31, 2019 and March 31, 2019.\n “Our management team and employees are very focused right now on serving our customers during the global pandemic,” stated James F. House, President and CEO of the Company. “I am proud of their tireless efforts. Due to the resiliency of our people, as well as the strength and stability of our balance sheet, I believe that we are well positioned to handle the challenges that we see ahead,” continued Mr. House. First Quarter 2020 Highlights Transfer of Indirect Loans – Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect loan portfolio from the Bank’s wholly-owned subsidiary, Acceptance Loan Company (“ALC”), to the Bank. The loans transferred include indirect sales lending relationships originated through prominent national or regional retailers that are managed by the Company on a centralized basis. The Company currently operates this lending in 11 states located in the southeastern United States. Management believes that the movement of this portfolio under the Bank’s brand will afford greater opportunity for growth and diversification of the portfolio over time. Net Interest Margin – Net interest margin was 4.97% for the first quarter of 2020, compared to 5.12% for the fourth quarter of 2019 and 5.17% for the first quarter of 2019. The reduction in net interest margin during the first quarter of 2020 resulted from the prevailing interest rate environment during the quarter, including the 150-basis point reduction in the federal funds rate in March that had an immediate impact on interest earned on the Company’s interest-bearing cash holdings. In response to the changing environment, during the quarter, management reduced rates paid on the majority of its deposit products. These efforts reduced total costs on interest-bearing liabilities during the quarter; however, interest-bearing assets repriced faster than interest-bearing liabilities. Should the interest rate environment hold in the near term, the Co...