First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (April 2022)
33 slides from First Us Bancshares's investor presentation, Apr 28, 2022
Slide 1: Investor Presentation As of March 31, 2022
Investor Presentation As of March 31, 2022 Exhibit 99.1
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 Strategic Focus 8 1Q2022 Highlights 12 Financial Results through March 31, 2022 20 Risk Management – Capital, Liquidity and Market Sensitivity 27 Appendix: Non-GAAP Reconciliation 30 First US Bancshares, INC.
Slide 5: Corporate Profile
Corporate profile §Company Founded: 1952 § Headquarters:Birmingham, AL § First US Bank: 15 Branches (1) / 2 LPOs § Acceptance Loan Co: 0 Branches (2) § Total Assets: $969 million § Net Loans: $670 million § Total Deposits: $853 million § Tangible BV: $13.02 per share (3) § Exchange: NASDAQ: FUSB § S
Slide 6: Corporate Profile: Senior Leadership Team
Corporate Profile Senior Leadership Team 6 Corporate Profile Senior Leadership Team James F. House President and Chief Executive Officer Veteran banker with SouthTrust Bank for 31 years § Business consultant 2005 to 2009 focusing on management, investments, and commercial and consumer lending issues
Slide 7: First US Bank Branch and LPO Location Map
7 Corporate Profile First US Bank – Branch and LPO Location Map
Slide 8: Strategic Focus
` PRIMARY GOALS Grow EPS, ROA and ROE Consistent, diversified loan and deposit growth Adherence to strong credit culture Effective expense control – both interest and non-interest LENDING FOCUS EXPENSE CONTROL LONGER TERM GROWTH EFFORTS Superior organic growth in earning assets Adherence to commerci
Slide 9: Update on Recent Strategic Initiatives
Strategic Focus Update on Recent Strategic Initiatives 9 In 2021, the Company undertook certain strategic initiatives as part of a long-term strategy to reduce expenses, fortify asset quality, and focus the Company’s loan growth efforts. These initiatives included closure of certain Bank branches, a
Slide 10: Building and Maintaining a Diversified Balance Sheet
Strategic Focus Building and Maintaining a Diversified Balance Sheet 10 Strategic Focus Building and Maintaining a Diversified Balance Sheet Loan Composition as of 3/31/2022 Deposit Composition as of 3/31/2022 Construction 7.5% Indirect 32.5% Branch Retail 3.2% Direct Consumer 2.7% C&I 10.0% Land 0.
Slide 11: A Favorable Geographic Footprint
11 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 N
Slide 12: 1Q2022 Highlights
12 Net income of $1.4 million, or $0.20 per diluted share Increase of $0.4 million, or 43.3%, compared to 1Q2021 Noninterest expense reduction of $1.3 million compared to 1Q2021 due primarily to strategic initiatives Continued reduction in interest expense Maintained discipline on deposit pricing in
Slide 13: Net decrease in loan portfolio since 1Q2020
1Q2022 Highlights First quarter of net decrease in loan portfolio since 1Q2020 13
Slide 14: Non-Residential CRE and Construction Portfolio Breakdown
1Q2022 Highlights Non-Residential CRE and Construction Portfolio Breakdown 14 Non-Residential CRE Breakdown as of 3/31/2022 Note: Dollars in thousands Construction Breakdown as of 3/31/2022
Slide 15: Indirect Portfolio
1Q2022 Highlights Indirect Portfolio Significant growth since 2020 due to state expansion and consumer choices during the pandemic Enhances earnings with average yield 5.57% Strong credit quality with weighted average credit score 755 Enhances geographic diversification of the loan portfolio This po
Slide 16: Indirect Portfolio Breakdown
1Q2022 Highlights Indirect Portfolio Breakdown 16 Indirect by Collateral as of 3/31/2022(1) Indirect by State as of 3/31/2022(1)(2) (1) Dollars in thousands (2) Represents state in which the participating dealer operates Cargo Trailers $12,007 Powersports $59 RV/Campers $130,404 Horse Trailers $40,7
Slide 17: Quarter Annualized Margin Report
1Q2022 Highlights 5 Quarter Annualized Margin Report 17 (1) Average Rate on Interest-Bearing Liabilities and Non-Interest-Bearing Deposits
Slide 18: Asset Quality – Uptick in charge-offs at ALC
1Q2022 Highlights Asset Quality – Uptick in charge-offs at ALC contributed to additional loan loss provisioning 18
Slide 19: Asset Quality – NPA reduction following sale of closed branches
Q12022 Highlights Asset Quality – NPA reduction following sale of closed branch assets 19 Nonperforming loans represent loans in nonaccrual status, while nonperforming assets includes both nonaccrual loans and OREO. Nonperforming assets increased in 3Q2021 following closure of four owned Bank branch
Slide 20: Profitability Metrics
Financial Results Profitability Metrics 20 (1) Calculations of tangible balances and measures are included in the Appendix
Slide 21: Balance Sheet Metrics
Financial Results Balance Sheet Metrics 21
Slide 22: Non-interest Income and Expense
Financial Results Non-interest Income and Expense 22 Other lncome Other sources of non-interest income include: Bank-owned life insurance Gains on the sales of premises and equipment and other assets Credit insurance commissions and fees
Slide 23: Share Price vs. Tangible Book Value
Financial Results Share Price vs. Tangible Book Value (90% as of 3/31/2022)(1) 23 (1) Calculations of tangible balances and measures are included in the Appendix
Slide 24: Selected Financial Data
24 Financial Results Selected Financial Data (1) Calculations of tangible balances and measures are included in the Appendix (2) Efficiency ratio = non-interest expense / (net interest income + non-interest income)
Slide 25: Selected Balance Sheet Information
Financial Results Selected Balance Sheet Information (dollars in thousands) 25
Slide 26: Income Statements
Financial Results Income Statements (dollars in thousands, except per share data) 26
Slide 27: Risk Management: Equity Capital
Risk Management Equity Capital 27 (1) The minimum regulatory requirement for Tier 1 Capital is 7.0%. To be considered well-capitalized, Tier 1 Capital must be 6.5%. (2) The minimum regulatory requirement for Tier 1 Leverage is 4.0%. To be considered well-capitalized, Tier 1 Leverage must be 5.0%. (3
Slide 28: Managing Investment Risk and Liquidity
Risk Management Managing Investment Risk and Liquidity 28 Summary of Securities Portfolio The portfolio is structured with relatively short expected average lives in order to enhance liquidity Weighted average book yield was 1.51% in 1Q2022 Expected average life of securities in the portfolio is 3.5
Slide 29: Interest Rate Sensitivity
29 Risk Management Interest Rate Sensitivity The following table summarizes the forecasted impact on net interest margin and net interest income using a base case scenario given upward and downward movements in interest rates of 100, 200 and 300 basis points (“bps”) based on forecasted assumptions o
Slide 30: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 31: Non-GAAP Reconciliation
31 Appendix Non-GAAP Reconciliation (dollars and shares in thousands, except per share data) (1) Calculation of Return on average tangible common equity (annualized) = ((net income (d) / number of days in period) * number of days in year) / average tangible shareholders’ equity (c)
Slide 32: Non-GAAP Reconciliation
32 Appendix Non-GAAP Reconciliation (dollars and shares in thousands, except per share data)
Slide 33: Contact: Thomas S. Elley, Chief Financial Officer
www.firstusbank.com Contact: Thomas S. Elley Chief Financial Officer telley@firstusbank.com 205.582.1200
First US Bancshares — Investor Presentation (April 2022) on 6ix