First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (August 2020)
34 slides from First Us Bancshares's investor presentation, Aug 7, 2020
Slide 1: Investor Presentation As of June 30, 2020
Investor Presentation As of June 30, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation of First US Bancshares, Inc. (“FUSB” or the “Company”) contains forward-looking statements, as defined by federal securities laws. Statements contained in this presentation that are not historical facts are forward-looking statements. These statements may
Slide 3: Presentation Disclosure
Presentation Disclosure This presentation has been prepared by FUSB solely for informational purposes based on its own information, as well as information from public sources. This presentation has been prepared to assist interested parties in making their own evaluation of FUSB and does not purport
Slide 4: Contents
Contents Corporate Profile ……………………………………………………………………………...….…......5 2020 Highlights...……………..………………..……………………………………………………….....9 Strategic Focus ……………………..…………………………........................……………………....17 Financial Results………………………………………………………………………………………….21 Appendix A: Historical Information……………
Slide 5: Corporate Profile
Company Founded:1952 Headquarters:Birmingham, AL First US Bank:20 Branches (1) / 2 LPOs Acceptance Loan Co:21 Branches Total Assets:$846 million Net Loans:$566 million Total Deposits:$738 million Tangible BV:$12.41 per share (2) Exchange:NASDAQ: FUSB Stock Price:$6.99 Price to TBV:56.3% (2) Market C
Slide 6: Corporate Profile: Senior Leadership Team
Corporate Profile Senior Leadership Team James F. House President and Chief Executive Officer Veteran banker with SouthTrust Bank for 31 years Business consultant from 2005 to 2009 focusing on management, investments, and commercial and consumer lending issues Florida Division President with BankTru
Slide 7: Corporate Profile: First US Bank – Branch and LPO Location Map
Corporate Profile: First US Bank – Branch and LPO Location Map
Slide 8: Corporate Profile: Acceptance Loan Company – Branch Location Map
Corporate Profile: Acceptance Loan Company – Branch Location Map
Slide 9: COVID-19 response and loan growth
Expanded safeguards to enhance safety of employees and customers Utilized digital capabilities to limit in-person meetings and support remote access work arrangements Strengthened social distancing protocols, including drive-up only branch operations and other safety precautions Assisted borrowers w
Slide 10: Second quarter 2020 results highlights
Diluted earnings per share of $0.06 in Q2, compared to $0.13 in Q1 Net income of $0.4 million in Q2, compared to $0.8 million in Q1 Net interest income decreased by $0.3 million 32-basis point reduction to net interest margin in wake of 150-basis point federal funds rate drop in March 2020 Average y
Slide 11: Six months 2020 results highlights
Diluted earnings per share of $0.19 in 2020, compared to $0.33 in 2019 Net income of $1.3 million in 2020, compared to $2.2 million in 2019 Net interest income decreased by $0.9 million in 2020 38-basis point reduction to net interest margin as interest-bearing assets repriced at faster pace than in
Slide 12: 2020 Highlights: Margin Compression and Focus on Deposit Costs
2020 Highlights Margin Compression and Aggressive Focus on Deposit Costs 5 Quarter Margin Report (Annualized) (1) Average Rate on Interest-Bearing Liabilities and Non-Interest-Bearing Deposits
Slide 13: 2020 Highlights: Asset Quality Remained Stable
2020 Highlights Asset Quality Remained Stable ALLL as a % of loans as of June 30, 2020 excludes PPP loans, which are guaranteed by the SBA 5 Quarter Net Charge-offs
Slide 14: 2020 Highlights: Indirect Sales Loan Portfolio Transferred from ALC to Bank
2020 Highlights Indirect Sales Loan Portfolio Transferred from ALC to Bank Fewer state-by-state barriers to entry More effective marketing under First US Bank name Significantly enhanced consumer loan approval process through existing Bank branches Better diversification of loan portfolio at Bank le
Slide 15: 2020 Highlights: At-Risk Loan Categories due to COVID-19
2020 Highlights At-Risk Loan Categories due to COVID-19 June 30, 2020 At-Risk Loan Category Due to COVID-19 Balance of Risk Category % of Total Loan Balance High-Risk Loan Categories: Hotels/Motels $ 10,410 1.8% Dine-in Restaurants 4,459 0.8% Total High-Risk Loans 14,869 2.6% Moderate-Risk Loan Cate
Slide 16: 2020 Highlights: Loan Deferments Due to COVID-19
2020 Highlights Loan Deferments Due to COVID-19 As of June 30, 2020 Number of Loans Deferred Principal Balance of Loans Deferred % of Portfolio Balance Principal and Interest Deferments Principal Only Deferments Loans Secured by Real Estate: Construction and Land 7 $ 4,544 14.5% $ 4,544 $ — 1-4 Fami
Slide 17: Strategic Focus
Near term: Continue to support customers while maintaining vigilance in the evaluation of credit quality Continue to expand and diversify loan portfolio while maintaining credit and pricing discipline Continue to reprice deposit products consistent with interest rate environment Lending efforts focu
Slide 18: Strategic Focus: A Favorable Geographic Footprint
Strategic Focus A Favorable Geographic Footprint Potential Markets for Growth Alabama: Auburn Dothan Huntsville Montgomery Florida: Destin Panama City Pensacola Georgia: Athens Atlanta Augusta Columbus Macon Mississippi: Hattiesburg Jackson Meridian South Carolina: Greenville Tennessee: Memphis Nash
Slide 19: Strategic Focus: Growing a Diversified Loan Portfolio
Strategic Focus Growing a Diversified Loan Portfolio
Slide 20: Strategic Focus: Building a Diversified Balance Sheet
Strategic Focus Building a Diversified Balance Sheet Loan Composition as of 6/30/2020 Deposit Composition as of 6/30/2020
Slide 21: Financial Results: Selected Financial Data
Quarter Ended Six Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 6/30/2020 6/30/2019 Diluted Net Income per Share $ 0.06 $ 0.13 $ 0.18 $ 0.16 $ 0.15 $ 0.19 $ 0.33 Return on Average Assets (annualized) 0.20% 0.43% 0.61% 0.57% 0.51% 0.31% 0.57% Return on Average Tangible Common Equity
Slide 22: Financial Results: Yields and Rates
Quarter Ended Six Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 6/30/2020 6/30/2019 Total Loans 6.66% 7.07% 7.29% 7.45% 7.68% 6.87% 7.67% Taxable Investment Securities 1.90% 2.05% 2.04% 1.99% 2.10% 1.97% 2.13% Tax-Exempt Investment Securities 2.78% 3.38% 2.83% 2.80% 2.74% 3.16% 2.7
Slide 23: Financial Results: Income Statements
Financial Results Income Statements (dollars in thousands, except per share data) Quarter Ended Six Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 6/30/2020 6/30/2019 Total Interest Income $ 9,780 $ 10,397 $ 10,825 $ 11,027 $ 10,923 $ 20,177 $ 21,736 Total Interest Expense 1,157 1,5
Slide 24: Financial Results: Selected Balance Sheet Information
Financial Results Selected Balance Sheet Information (dollars in thousands) As of 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Cash and Federal Funds Sold $ 108,348 $ 71,201 $ 67,110 $ 45,515 $ 59,940 Investment Securities $ 103,964 $ 110,079 $ 108,356 $ 114,309 $ 136,649 Loans, Net of Allowan
Slide 25: Appendices
FIRST US BANCSHARES, INC. Appendices
Slide 26: Appendix A: Committed to Sound Credit Policies
Appendix A – Historical Information Committed to Sound Credit Policies Total Classified Assets $78 million reduction in classified assets since 2011 Nonperforming Assets reduced from peak of $47 million to $4.4 million as of 6/30/2020 Nonperforming Assets as a % of Total Assets reduced from 5.73% as
Slide 27: Appendix A: Modernized Technology While Maintaining Cost Discipline
Appendix A – Historical Information Modernized Technology While Maintaining Cost Discipline Cost-neutral positioning maintained while redeploying dollars to rebuild infrastructure and expand product offerings Increased expense in 2018 and 2019 due to acquisition of The Peoples Bank ALC adds substant
Slide 28: Appendix A: Income Statements Annual Comparison
Appendix A – Historical Information Income Statements Annual Comparison (dollars in thousands, except per share data) Year Ended 12/31/2019 12/31/2018 12/31/2017 12/31/2016 12/31/2015 Total Interest Income $ 43,588 $ 37,138 $ 31,100 $ 30,155 $ 29,897 Total Interest Expense 6,646 4,350 2,706 2,271 2,
Slide 29: Appendix A: Selected Balance Sheet Information – Annual Comparison
Appendix A – Historical Information Selected Balance Sheet Information – Annual Comparison (dollars in thousands) As of 12/31/2019 12/31/2018 12/31/2017 12/31/2016 12/31/2015 Cash and Federal Funds Sold $ 67,110 $ 57,953 $ 42,124 $ 23,530 $ 44,072 Investment Securities $ 108,356 $ 153,949 $ 180,150
Slide 30: Appendix A: Capital Ratios
Appendix A – Historical Information Capital Ratios: Re-leveraged through The Peoples Bank acquisition Common Equity Tier 1 Capital Risk-based Capital Tier 1 Leverage December 31, 2017 18.41% 19.60% 11.89% December 31, 2018 12.62% 13.53% 8.96% December 31, 2019 12.78% 13.77% 9.61% June 30, 2020 13.94
Slide 31: Appendix A: Share Price vs. Tangible Book Value
Appendix A – Historical Information Share Price vs. Tangible Book Value (56% as of 6/30/2020)(1) (1) Calculations of tangible balances and measures are included in Appendix B
Slide 32: Appendix B: Non-GAAP Reconciliation
Quarter Ended 6 Months Ended Year Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 6/30/2020 6/30/2019 12/31/2019 12/31/2018 12/31/2017 12/31/2016 TANGIBLE BALANCES Total assets $ 845,747 $ 788,565 $ 788,738 $ 771,930 $ 777,171 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit
Slide 33: Appendix B: Non-GAAP Reconciliation – Tangible Book Value
6/30/2020 12/31/2019 6/30/2019 12/31/2018 6/30/2018 12/31/2017 6/30/2017 12/31/2016 TANGIBLE BOOK VALUE Total shareholders’ equity $ 85,281 $ 84,748 $ 83,748 $ 79,437 $ 75,634 $ 76,208 $ 78,373 $ 76,241 Less: Goodwill 7,435 7,435 7,435 7,435 — — — — Less: Core deposit intangible 1,170 1,390 1,621 1,
Slide 34: Contact: Thomas S. Elley, Chief Financial Officer
www.firstusbank.com Contact: Thomas S. Elley Chief Financial Officer telley@firstusbank.com 205.582.1200
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