First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (August 2018)
34 slides from First Us Bancshares's investor presentation, Aug 13, 2018
Slide 1: Investor Presentation
FIRST US | BANCSHARES, INC. Investor Presentation As of June 30, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘his presentation of Fist US Bancshares, Inc. (-FUSB") contains fonwordHoakng statements, os defined by federal scuriostavs Statements contained in ths presentation tnat are not Mstorcal facts are fonwordooking statements, These statements may address isves thal fvolve Sin
Slide 3: Presentation Disclosure
Presentation Disclosure “Thispresentation has bean prepared by FUS8 solay for informational purposes based on itsown information, 2s wel a information from public sources. Ths presentation nos been prepored fo osistinterestedpportiesin making thelr own evaluation of FUSB and does Not purport fo cont
Slide 4: Contents
Contents Corporate Profile ...... 2018 Strategic Initiatives..... Recent Financial Highlights - YTD 2018 and 2017... Linked Quarter Comparisons. Five-Year Financial Date ....... Share Price Data FIRST US BANCSHARES, INC.
Slide 5: First US Bancshares, Inc. Corporate Profile
First US Bancshares, Inc. Corporate Profile * Bank holding company headquarteredin Birmingham, AL = Tracesroots back to 1952 ~ Relocated headquarters to Birmingham from Thomasville, AL in September 2017 - Name changed to First US Bancshares, Inc. in October 2016 (previously, United Security Bancshar
Slide 6: Corporate Profile
FIRST US BANCSHARES, INC. >rporate Pro . Bimingham, A\ + Exchange: . 16 Bank, 21 ALC : * Total Assets: $634 milion . + Net Loans: $356 milion + Market Cap: * Total Deposits $531 millon + Annual Dividen . Valve: $12.41 p * Dividend Yield Information os of 6/30/18
Slide 7: 2018 Strategic Initiatives
2018 Strategic Initiatives O successtulacquisition and Integration of The Peoples Bank O Lease-up of the Bank's Pump House Plaza office complexin Birmingham Q Continued growth in existing metropolitan markets QO Mortgage Division growth O Continued deployment of enhanced technology O Continued enhan
Slide 8: Pending Acquisition
Pending Acquisition The Peoples Bank* = Headquartered in Rose Hill, VA = Major market served- Knoxville, IN = 4retail branches - 2 in Virginia, 2 in Tennessee = Purchase price =1.62 x book equity as of 12/31/17, subject to certain adjustments * Dollar for dollar payment for 2018 earnings = Combined
Slide 9: Pending Acquisition
Pending Acquisition The Peoples Bank* «= Assets = Deposits = As of 12/31/17: $155 million = As of 12/31/17: $127 million + As of 6/30/18: $166 million = Asof 6/30/18: $137 million * Net loans = Loans to Deposits Ratio = AS of 12/31/17: $142 million = As of 12/31/17: 98.82% * Asof 6/30/18: $150 milli
Slide 10: Growth in Metropolitan Markets
Growth in Metropolitan Markets FUSB Loans to Deposits Ratio - Room for Growth 100.0% 90.0% 200% 700% oon 9.0% 669% 669% 21% baie 00% Sa7% 583% 400% 300% 200% 100%, oon Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dee 31 dun 2012 2013 214 5 218 2017 2018 FIRST US BANCSHARES, INC
Slide 11: Growth in Metropolitan Markets
Growth in Metropolitan Markets Birmingham's Pump House Plaza = Opened and moved corporate headquarters Q3 2017 = Created significant presence in Birmingham; FUSB occupies approximately 30% = Houses Executive Management, CommercialLending, Marketing, Mortgage, Special Assets, Credit Review and others
Slide 12: Mortgage Division
Mortgage Division Key Entry Point in New Markets = Glenn Garett, SVP, Mortgage Banking Executive = 30+ years mortgage banking experience; joined FUSB in November 2016 + 5 mortgage lenders hired — 3in Birmingham, | in Tuscaloosa, | in Jackson, Alabama = Relationships established with 6 wholesale lend
Slide 13: Deployment of Technology
Deployment of Technology Interactive Teller Machines Three Interactive Teller Machines (ITMs) installed at Pump | ! iA ean House Plaza l * Serving as the primary TellerLine and Drive Up Teller * Supported by Personal Bankers workingin the Call Center at Thomasville Operations Center * Well received
Slide 14: YTD 2018 Financial Highlights
YTD 2018 Financial Highlights * Loan growth $9.4 millon, or 5.5%, on annualized basis Bank: relatively flat YTD, Q1 growth offset by pay-offs in Q2 ALC: $9.3 milion growth YID, generated through indrect point-of-sale retail opportunities Annualized yield on interest-earning assets: 5.88% YID 2018, c
Slide 15: YTD 2018 Financial Highlights
YTD 2018 Financial Highlights = Non-interestincome = Increase of 8.3% comparing YTD 2018 to YTD 2017 ~ Primary driver: secondary market fees from Mortgage Division ($261,000 YTD 2018, compared to $58,000 YTD 2017) * Non-interest expense ~ Increase of 6.4% comparing YTD 2018 to YTD 2017 = Primary dri
Slide 16: Continued Momentum in Loan Growth
Continued Momentum in Loan Growth First US Bank Loan Volume = Growthcontinuesto be driven bylarger $400,000 metropoitan markets = Maintaining adherence to $350,000 al credit standards = Annualized average yield S000, == YID 2018 of 4.46%, $250,000 compared to 4.10% YTD. 2017 § 8 Continuedshift to in
Slide 17: Bank Loan Portfolio Composition
Bank Loan Portfolio Composition = Focuson C&l and real estate to + Noreal estate development loans = Cash flow from C&l loans ands Thous $300,000 ~ $250,000 ~ $200,000 7 $150,000 7 $100,000 50000 FIRST US BANCSHARES, INC.
Slide 18: Commercial Lending by Region
Commercial Lending by Region Strategy: Growth in metropolitan markets * Central: Birmingham = West: Tuscaloosa = South: Legacy markets Total Commerc 318 $167.254 $211,028 FIRST US BANCSHARES, INC.
Slide 19: ALC Loan Portfolio Composition
ALC Loan Portfolio Composition , $110.00 = Focuson indirect lending through pines prominentretailers = Raised credit spectrum on direct consumer housands + Realestate lending (previously discontinued) in runoff mode ft FIRST US BANCSHARES, INC.
Slide 20: Asset Quality Improvement
Asset Quality Improvement Total Classified Assets * $78 millionreduction in classified assets since 2011 $90,000, $80,000 = OREO/foreclosure expense provers reduced from $6.2 millionin 2012 $60,000 to $0.5 milion in 2017 and $0.2 $5000 million YTD 2018, $40.00 $3000 $20.00 $10000 $5013 | $332 FIRST
Slide 21: Other Real Estate Owned (OREO)
Other Real Estate Owned (OREO) Number of As of As of Properties 6/30/2018 12/31/2017 Property Category 6/30/2018 (in 000s) (in 000s) Commercial- Improved 2 $ 674 $ 1,340 Commercial- Unimproved 5 1,251 720 1 - 4 Family Residential- Improved 1 42 362 1-4 Family Residential- Land Only 2 35 85 Total Ban
Slide 22: Capital Ratios
Capital Ratios Room for Growth Tier 1 Leverage December31, 2015 22.19% 23.35% 13.02% December31, 2016 19.01% 20.26% 12.27% December31, 2017 18.41% 19.60% 11.89% June 30, 2018 18.48% 19.70% 11.97% Well-Capitalized 6.50% 10.00% 5.00% + Capital levels provide room for pending acquistion of The Peoples
Slide 23: 2017 Financial Highlights
2017 Financial Highlights * Loan growth $23.3milion year-over-yearincrease, or 7.2% Bank: $17.4milion, or 7.4% ALC:$5.9 milion, oF 6.9% 2016.<nd 2017 combined net loan growth of $90.7 milion * Deposit growth, = $19.5milion year-over-yearincrease, or 3.9% = $17.7 milion of this growth generated throu
Slide 24: 2017 Financial Highlights - The Impact of Tax Reform
2017 Financial Highlights - The Impact of Tax Reform = Net loss of $411,000 for FYE 2017 = Non-cash charge of $2.5 milion from enactment of Tax Reforr = Impact of Tax Reform on Net Income and Selected Financial Data’: Provision for income taxes $ $564 Net income (loss) $ Basic net income (loss) per
Slide 25: Non-Interest Expense
Non-Interest Expense “Cost Neutral” Profile Non-interest Expense * Cost neutral positioning maintained while redeploying dollars to rebuild infrastructure and expand product offerings = ALC adds substantial cost, but with the benefits of higher yield and superior diversification FIRST US BANCSHARES,
Slide 26: Building Infrastructure while Controlling Costs
Building Infrastructure while Controlling Costs (Strategic Initiatives 2013 - 2017) * Information security development = Ovisourcing core processing. item processing, statement printing = Office 365 (emai, calendaring, cloud platforms) ~ High speed networks ~ Website re-design ~ Upgraded accounts pa
Slide 27: Building Infrastructure while Controlling Costs
Building Infrastructure while Controlling Costs (Strategic Initiatives 2013 - 2017) = Rebranding Fist US Bank: December 2014 Moved ALC headquarters to Mobile in early 2015 Fist US Bancshares, Inc. and new ticker symbol (FUSB): October 2016 Completed construction of Pump House Plaza: August 2017 Move
Slide 28: Selected Balance Sheet Information
Selected Balance Sheet Information Quarterly Comparison 9/30/2017 Investment Securities Loans, Net of Alowance for Loan Total Assets Deposits Total Shoreho Total liabities and Shareholders Equity 165740 $ 355529 $ 2.181 $ 634,036 $ 531,428 $ 75634 $ 6340036 $ 525273 $ 7: 627.319 $ 180,150 $ 185802 $
Slide 29: Income Statements
Income Statements Quarterly Comparison Total interest income jerest Expense 888 Neflinterestincome $ 7.502 $ $ Provision for Loan Losses 70: Net Interestincome AfterProvsion for Loan 5 ads eis etd 5 [otal Non-Interest Income 1,132 1,140 1,333 Total Non-Interest Expense 7.492 7,301 7.359 ncome Before
Slide 30: Selected Balance Sheet Information
Selected Balance Sheet Information Annual Comparison Invesiment Securities Loans, Net of Allowance for Loan Lo: ‘OREO Total Assets Deposits Total Shareholders’ Equity Total Liabilities and Shareholders’ Equity $ 180,150 $ 207814 $ 231,202 $ 346,121 $ 322,772 $ 32 $3792 $ 4,858 6,038 $ 625,581 $ 6068
Slide 31: Income Statements
Income Statements Annual Comparison Total Interest income $ 31.100 $ 30.155 $ 29897 $ 31.361 Total interest Expense 2706 __2271 2289 __2.553 Net interest Income $ $ 27.608 $ 28,808 Provision for Loan Losses 216 (74) Net interestincome After Provision for Loan Losses $ 26407 $ 24687 $ 27.392 $ 28882
Slide 32: Significant Income-Related Variances
Significant Income-Related Variances (Comparing Annual Income Statements 2013 - 2017) = Interestincome = Declined through 2015due toreducedloan volume and yield = Bankloan volume was reduced due to efforts to correct credit qualityissues = $109 milion decrease in net loans between 12/31/12and 9/30/1
Slide 33: Share Price v. Book Value
Share Price v. Book Value $1400 1280121 $1200 mao 114g 143 1145 $10.00 1109 1253 $800 $6.00 soo 53 200 Sages eee ese 2928282225 FR Be $23528 25 835483558352 8 38 z Se RP SER 28 FPR B5F GRRE GES “=first US Bancshares Stock Price -®-Book Value FIRST US BANCSHARES, INC.
Slide 34: www.firstusbank.com
FIRST US BANCSHARES, INC. WwWw.firstusbank.com.
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