First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (January 2019)
30 slides from First Us Bancshares's investor presentation, Jan 29, 2019
Slide 1: Investor Presentation As of December 31, 2018
FIRST US BANCSHARES, INC. Investor Presentation As of December 31, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation of Fist US Bancshares, Inc. ("FUSB") contains fonvarcooking stotements, os defined by federal securities laws. Stotements Contained in this presentation that are not historical facts ate forwarclooking statements. These statements may address isues that I
Slide 3: Presentation Disclosure
Presentation Disclosure ‘Thispresentatlon has been prepared by FUSS solely for Informational purposes based on Is own information, as wal as information from puble Sources. This presentation has been prepared to asistinterestedpartiesin making thelr own evaluation of FUSB and does not purport to con
Slide 4: Contents
Contents Corporate Profile 2018 Financial Highlights. Focus on 2018 Strategic Initiatives. = Linked Quarter Comparisons... 2S, * Five Year Financial Data DT * Share Price Data ... 29 FIRST US BANCSHARES, INC.
Slide 5: Corporate Profile
First US Bancshares, Inc. Corporate Profile * Bank holding company headquarteredin Birmingham, AL — Tracesroots back to 1952 — Headquarteredin Birmingham, AL since September 2017 — Name changed to First US Bancshares, Inc. in October 2016 (previously, United Security Bancshares, Inc.) — NASDAQ ticke
Slide 6: Corporate Profile
FIRST US BANCSHARES, INC. rporate Profile = Headquarters Birmingham, AL = Exchange: NASDAQ: FUSB = Branches: 20 Bank, 21 ALC = Stock Price $7.95 = Total Assets $792 million = Price to TBV: NAG = Net Loans: $515 million = Market Cap: $50.07 milion * Total Deposits: $705 million = Annual Dividend: $0.
Slide 7: First US Bank - Branch Location Map
First US Bank - Branch Location Map. ‘Gusto oo raged onto ‘sarkaile Llony kook a Augusta tween ge” simon) coming ene . soo 7S eet ey 2
Slide 8: Acceptance Loan Company - Branch Location Map
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Slide 9: 2018 Financial Highlights
2018 Financial Highlights = Acquired The Peoples Bank on August 31, 2018 = $155 million in caring assets and $140 million in deposits = 4 branches in Tennessee and southwest Virginia ~ Gives the Bank a foothold in the vibrant Knoxville, TN market * Significant earnings growth following acquisition —
Slide 10: 2018 Financial Highlights
2018 Financial Highlights * Organic loan growth ~ $21.8 million, or 6.2% ~ Bank: $12.8 million organic growth - ALC: $9.0 million organic growth, generated through indirect point-of-sale retail opportunities - Annualized yield on interest-earning assets: 6.11% in Q4 2018, compared to 5.65% in Q4 201
Slide 11: 2018 Financial Highlights
2018 Financial Highlights * Non-interest income = Increase of 18.8%, comparing 2018 to 2017 = Primary driver: settlement of derivative contracts during @3 2018 that resulted in a pre-tax gain of approximately $1.0 million = Non-interest expense = Increase of 13.6% comparing 2018 to 2017 = Non-recurt
Slide 12: Focus on 2018 Strategic Initiatives
Focus on 2018 Strategic Initiatives &f successiul acquisition and integration of the Peoples Bank Sf Lease-up of the Bank's Pump House Plaza office complexin Birmingham & continued growth in existing metropolitan markets & Mortgage Divisiongrowtn & continued deployment of enhanced technology & conti
Slide 13: Completed Acquisition
Completed Acquisition The Peoples Bank* + Formerly headquartered in Rose Hill, VA = Major market served - Knoxville, TN * 4 retail 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 earning
Slide 14: Growth in Metropolitan Markets
Growth in Metropolitan Markets FUSB Loans to Deposits Ratio — Room for Growth 10008 900% 200% : 0% mie 00% = 69%, Ole oh ae sare 5838 400% 200%, 200% 100% oor Deo 31 Dec 31 Dee 31 Dec 31 Dec 31 Dec 31 Dec 31 2012 2013, 214 2015 2018 2017 2018 FIRST US BANCSHARES, INC.
Slide 15: Growth in Metropolitan Markets
Growth in Metropolitan Markets Birmingham's Pump House Plaza * Opened and moved corporate headquarters in @3 2017 * Created significant presence in Birmingham; FUSB occupies approximately 30% * Houses Executive Management, CommercialLending, Marketing, Mortgage, Special Assets, Credit Review and oth
Slide 16: Mortgage Division
Mortgage Division Key Entry Point in New Markets = $507,000 in secondary market fees earned in 2018, compared to $211,000 in 2017 = 5 mortgage lenders as of 12/31/18 — 3inBirmingham, | in Knoxville, | in Southwest Alabama + Relationships established with 6 wholesale lenders + Offering conventional,
Slide 17: Deployment of Technology
Deployment of Technology Interactive Teller Machines = Three Interactive Teller Machines (ITMs) installed at Pump House Plaza; one in Brent, Alabama (former branch location) = Serving as the primary Teller Line and Drive Up Teller * Supported by Personal Bankers workingin the Call Center at Thomasvi
Slide 18: Continued Momentum in Loan Growth
Continued Momentum in Loan Growth First US Bank = Growth continvesto be Loan Volume driven bylarger metropolitan markets. as ‘Seong swell os the TPB acquisition : i = Maintaining adherence to $800.00 credit standards = Annualized average yield $400,000 YE201801 485%, ‘ compared io 4.19%YE 20175 gsn0
Slide 19: Bank Loan Portfolio Composition
Bank Loan Portfolio Composition = Focuson C&l and real estate to enhance diversification * Noreal estate development $300,000 ~~ loans 7 4 $250,000 = «Cash flow from C&l loans 8 ee oe * Growth from the TPB acquisition "$1000 $50,000 concentrated within real estate portfolio m2 consumer Commercial &
Slide 20: ALC Loan Portfolio Composition
ALC Loan Portfolio Composition act ; 10,000 * Focuson indirect lending ease through prominent retailers 90,000 e000 7 = Raised credit spectrumon hee : i 6 — direct consumer ee 3 somo ¢ * Real estate lending (previously = 30,000 ~ discontinued) in runoff mode 00 10,000.” irs RealEstate isirect ‘ales
Slide 21: Asset Quality Improvement
Asset Quality Improvement 7 * $76 million reduction in classified Total Classmed Assets assets since 2011 $90,000 $80,000 * Nonperforming assets reduced pees from peak of $47 milion to $4.3 pees million as of 12/31/18 $60,000 —| _ = OREO/foreclosure expense $40,000 = reduced from $6.2 million in 201
Slide 22: Other Real Estate Owned (OREO)
Other Real Estate Owned (OREO) Number of As of As of Properties 12/31/2018 12/31/2017 Property Category 12/31/2018 (in 000s) (in 000s) Commercial- Improved 8 $ 467 $ 1,340 Commercial Unimproved 3 789 1.720 1-4 Family Residential- Improved a 114 362 1-4 Family Residential Land Only 2 31 85 Total Bank
Slide 23: Capital Ratios
Capital Ratios Re-leveraged through The Peoples Bank acquisition Common Equity | Risk-based Capital Tier 1 Tier 1 Capital leverage December31, 2015 December31, 2016 December31, 2017 December31, 2018 Well-Capitalized = Will continue to build c: 22.19% 23.35% 19.01% 20.26% 18.41% 19.60% 12.62% 13.53%
Slide 24: Non-Interest Expense
Non-Iinterest Expense Maintaining Cost Discipline Non-Interest Expense * Cost neutral positioning maintained while redeploying dollars to rebuild infrastructure and expand product offerings * Increased expense in 2018 due to addition of The Peoples Bank = ALC adds substantial expense, but with the b
Slide 25: Selected Balance Sheet Information
Selected Balance Sheet Information Quarterly Comparison (dollars in thousands) investment Securities $ 153,949 $ 159.496 § 165,740 § 181,942 $ 180,150 pape Netot ate Jeol: 514867 § 51982§ 355529 § 353,805 $ 346,121 ‘OREO $ 1,505 $ 1.489 §, 2181 $ 3,343 $ 3.792 fotal Assets $ 791.939 § 802,595 § 634,
Slide 26: Income Statements
Income Statements Quarterly Comparison (dollars in thousands) Total Interestincome Total Interest Expense Nefinterestineome: Provision for Loan Losses Netlinterestincome After Provision for Loan Losses Total Non-Interest Income TolalNoninerest Expense Income Before Income Taxes Provision for income
Slide 27: Selected Balance Sheet Information
Selected Balance Sheet Information Annual Comparison (dollars in thousands) $ 231,202, $ 234086| $ 170.804 Investment Securities 207.814 Loans, Net of Allowance for Loan Losses $ 514,867 $ 346,121 $ 322772 $ 255.432 $ 259.516 $ 300.927 ‘OREO 5 $4858, $ 6038, $ 7.735 $ 9.310 Total Assets $7: $ 606.89
Slide 28: Income Statements
Income Statements Annual Comparison (dollars in thousands) Total Interestineome: Total Interest Expense Nefinierestincome Provision for Loan Losses Net interest income After Provision for Loan Loses Total Non-Inierest In Total Noninterest Expense Income Before Income Taxes Provision for Inéome Taxes
Slide 29: Share Price vs. Book Value
Share Price v. $14.00 $1200 $10.00 1107 38.00 6.00 $400 $2.00 548 sopet2 Book Value Sg ES £ 3 ors $ 1276 13003462 = Fist US Bancshares Stock Price -e-Tangible Book Value FIRST US 12.80 121 1291 1122 1959 4/45 X11 nei? sop eo? norte septs BANCSHARES, INC.
Slide 30: www.firstusbank.com
FIRST US BANCSHARES, INC. www.firstusbank.com
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