First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (November 2020)
34 slides from First Us Bancshares's investor presentation, Nov 18, 2020
Slide 1: Investor Presentation As of September 30, 2020
Investor Presentation As of September 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 Q3 2020 Highlights……………..…….………...……………………………………………………….....9 Financial Results through September 30, 2020….………………………………………………….15 2020 Year-to-Date Highlights……..………….………………........................……………………....19 Ongoing Strateg
Slide 5: Corporate Profile
Company Founded:1952 Headquarters:Birmingham, AL First US Bank:19 Branches (1) / 2 LPOs Acceptance Loan Co:20 Branches (2) Total Assets:$853 million Net Loans:$628 million Total Deposits:$745 million Tangible BV:$12.49 per share (3) Exchange:NASDAQ: FUSB Stock Price:$6.63 Price to TBV:53.1% (3) Mark
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: First US Bank – Branch and LPO Location Map
Corporate Profile: First US Bank – Branch and LPO Location Map Bank Branch Locations Bank Loan Production Offices
Slide 8: Acceptance Loan Company – Branch Location Map
Corporate Profile: Acceptance Loan Company – Branch Location Map
Slide 9: Q3 2020 Highlights
Net income of $0.4 million and diluted EPS of $0.06, consistent with Q2 $61.1 million in Q3 loan growth Led by $35.4 million growth in Indirect Sales (RVs, campers, boats, horse trailers) $27.6 million in Commercial Real Estate growth (single credit tenant lease loans and other viable projects in th
Slide 10: Loan Growth of $61.1 million driven by Indirect Sales and CRE
Q3 2020 Highlights Loan Growth of $61.1 million driven by Indirect Sales and CRE
Slide 11: Loan Growth and Focus on Deposit Costs Slowed Margin Compression
Q3 2020 Highlights Loan Growth and Focus on Deposit Costs Slowed Margin Compression in Q3 5 Quarter Margin Report (Annualized) (1) Average Rate on Interest-Bearing Liabilities and Non-Interest-Bearing Deposits
Slide 12: Net Charge-off Experience Improved in Q3
Q3 2020 Highlights Net Charge-off Experience Improved in Q3 ALLL as a % of loans as of June 30, 2020 and September 30, 2020 excludes PPP loans, which are guaranteed by the SBA 5 Quarter Net Charge-offs
Slide 13: COVID-19 Loan Deferments Reduced by $76.8 million in Q3
Q3 2020 Highlights COVID-19 Loan Deferments Reduced by $76.8 million in Q3 As of September 30, 2020 As of June 30, 2020 Number of Loans Deferred Principal Balance of Loans Deferred % of Portfolio Balance Number of Loans Deferred Principal Balance of Loans Deferred % of Portfolio Balance Loans Secure
Slide 14: Further Clarity on COVID-19 At-Risk Loan Categories
Q3 2020 Highlights Further Clarity on COVID-19 At-Risk Loan Categories September 30, 2020 June 30, 2020 At-Risk Loan Category Due to COVID-19 Balance of Risk Category % of Total Loan Balance Balance of Risk Category % of Total Loan Balance High-Risk Loan Categories: Hotels/Motels $ 10,459 1.6% $ 10,
Slide 15: Selected Financial Data
Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Diluted Net Income per Share $ 0.06 $ 0.06 $ 0.13 $ 0.18 $ 0.16 $ 0.25 $ 0.49 Return on Average Assets (annualized) 0.19% 0.20% 0.43% 0.61% 0.57% 0.27% 0.57% Return on Average Tangible Common Equit
Slide 16: Income Statements
Financial Results Income Statements (dollars in thousands, except per share data) Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Total Interest Income $ 9,996 $ 9,780 $ 10,397 $ 10,825 $ 11,027 $ 30,173 $ 32,763 Total Interest Expense 1,031 1,1
Slide 17: Selected Balance Sheet Information
Financial Results Selected Balance Sheet Information (dollars in thousands) As of 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Cash and Federal Funds Sold $ 65,729 $ 108,348 $ 71,201 $ 67,110 $ 45,515 Investment Securities $ 93,405 $ 103,964 $ 110,079 $ 108,356 $ 114,309 Loans, Net of Allowanc
Slide 18: Yields and Rates
Quarter Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Total Loans 6.24% 6.66% 7.07% 7.29% 7.45% 6.64% 7.60% Taxable Investment Securities 1.64% 1.90% 2.05% 2.04% 1.99% 1.87% 2.09% Tax-Exempt Investment Securities 1.80% 2.78% 3.38% 2.83% 2.80% 2.41% 2.
Slide 19: Earnings challenged in Q2 and Q3 in wake of COVID-19
Earnings challenged in Q2 and Q3 in wake of COVID-19 pandemic and margin compression Diluted EPS of $0.25 in 2020, compared to $0.49 in 2019 Net income of $1.7 million in 2020, compared to $3.4 million in 2019 Net interest income decreased by $1.3 million in 2020 48-basis point reduction to net inte
Slide 20: Continued Growth and Diversification of Loan Portfolio
2020 Year-to-Date Highlights Continued Growth and Diversification of Loan Portfolio
Slide 21: Indirect Sales Portfolio Transferred from ALC to Bank
2020 Year-to-Date Highlights Indirect Sales Portfolio Transferred from ALC to Bank on January 1, 2020 Fewer state-by-state barriers to entry More effective marketing under First US Bank name Enhanced consumer loan approval process through existing Bank branches Better diversification of loan portfol
Slide 22: Ongoing Strategic Focus
Near term: Support customers in the pandemic while maintaining vigilance in the evaluation of credit quality Expand and diversify loan portfolio while maintaining credit and pricing discipline Continue to reprice deposit products consistent with interest rate environment Continue to evaluate the pan
Slide 23: Building and Maintaining a Diversified Balance Sheet
Ongoing Strategic Focus Building and Maintaining a Diversified Balance Sheet Loan Composition as of 9/30/2020 Deposit Composition as of 9/30/2020
Slide 24: A Favorable Geographic Footprint
Ongoing 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: Memp
Slide 25: Appendices
FIRST US BANCSHARES, INC. Appendices
Slide 26: 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 $4.0 million as of 9/30/2020 Nonperforming Assets as a % of Total Assets reduced from 5.73% as
Slide 27: 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: 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: 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: 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% September 30, 2020
Slide 31: Share Price vs. Tangible Book Value
Appendix A – Historical Information Share Price vs. Tangible Book Value (53% as of 9/30/2020)(1) (1) Calculations of tangible balances and measures are included in Appendix B
Slide 32: Appendix B: Non-GAAP Reconciliation – Tangible Balances
Quarter Ended 9 Months Ended Year Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 12/31/2019 12/31/2018 12/31/2017 12/31/2016 TANGIBLE BALANCES Total assets $ 852,941 $ 845,747 $ 788,565 $ 788,738 $ 771,930 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit
Slide 33: Non-GAAP Reconciliation – Tangible Book Value
9/30/2020 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 $ 85,658 $ 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 1,067 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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