First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (May 2019)
33 slides from First Us Bancshares's investor presentation, May 2, 2019
Slide 1: First US Bancshares, Inc. Investor Presentation
FIRST US BANCSHARES, INC. Investor Presentation As of March 31, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This presentotion of Fist US Bancshares, Inc. ("FUSB") contains forwordookhng statements, os defined by federal securities laws. Statements contained in this presentation that are not historical facts ore forwordHlooking statements. These statements moy address sues thot
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 ...... = Our Culture... = Poised for Growth..... = What We've Done... = Where We're Headed.....cscsessseersss cess = Appendix A: 2018 Financial Highlights, Quarterly and Annual Financial Information........25 = Appendix B: Non-GAAP Reconciliation. 7 — See eer hv 32 FIRST
Slide 5: Corporate Profile
First US Bancshares, Inc. Corporate Profile * Bank holding company headquartered in Birmingham, AL = Traces roots back to 1952 Headquartered in Birmingham, AL since September 2017 Name changed to First US Bancshares, Inc. in October 2016 (previously, United Security Bancshares, Inc.) Nasdaq licker s
Slide 6: Corporate Profile
FIRST US BANCSHARES, INC. >rporate Pro Birmingham, Al . ange: NASDAQ: FUSB. 20 Bank, 21 ALC . $10.00 * Total Assets: $795 milion : 7 + Net Loans: $503 milion + Market Cop: 04 milion * Total Deposits $703 milion + Annual Dividen . Valve: $11 * Dividend Yield Information os of 3/31/19
Slide 7: First US Bank — Branch Location Map
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Slide 8: Acceptance Loan Company - Branch Location Map
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Slide 9: An Experienced Management Team
Our Culture An Experienced Management Team = =e FIRST US BANCSHARES, INC
Slide 10: Committed to Sound Credit Policies
Our Culture Committed to Sound Credit Policies Total Classified Assets = §78milion reductionin Classified assets since 2011 * Nonperforming assets reduced from peak of $47 millon to $3.1 milion as of 331g # Nonperforming assets as 0 % of Total Assets reduced from 5.73% as of 12/31/11 10 0.39% as of
Slide 11: Building a Diversified Loan Portfolio
Our Culture Building a Diversified Loan Portfolio First US Bank — Growthdriven by expansion into larger Loan Volume metropolitan markets, am including the TPB merger = Maintaining adherence to $s00000 -—_ credit standards = Annualized average yield $400,000 QI 2019 of 5.30%, compared fo 4.85% FYE $2
Slide 12: First US Bank — Building a Diversified Portfolio
Our Culture First US Bank — Building a Diversified Portfolio + C&land Real Estate enhance diversification = Stay within our core competencies * Focus on C8l loans with strong cash flows = Limited real estate development loans (primarly those acquired through the IPB merger) = Growth from the TP8 mer
Slide 13: ALC - Enhancing Diversification with Focus on Indirect Sales
Our Culture ALC - Enhancing Diversification with Focus on Indirect Sales = Indirect Soles ~ National and Regional retailers (includes RVs/campers, marine, horse tralers, cargo trailers, imited Als) = Branch Retall- Local retaiers managed through branch network = Direct Consumer— Instalment lending t
Slide 14: Share Price vs. Tangible Book Value
Poised for Growth Share Price vs. Tangible Book Value (87% as of 3/31/2019) sim, 1280 Wat s1200 $10.00 11.09. som ss 40 20 Sass 2 ene sts eeee 28225 SRS eee PPPLRERPR SERA REEL RELL EERE EEE -=First US Bancshares Stock Price -*-Tangible Book Volve FIRST US BANCSHARES, INC.
Slide 15: Selected Financial Data
Poised for Growth Selected Financial Data (dollars in thousands, except per share data) Year Ended 172018 | 1 Net Income Net Income per Share |§ (annualized) ‘Common Equity (annuaize vd ~ a jal Assets 791.939$ 802 Tangible Book Value per ‘Common Share vas toms taal aap as
Slide 16: A Favorable Geographic Footprint
Poised for Growth — A Favorable Geographic Footprint Potential Markets for Growth = Alobama: = = —— > oho te = Montgomery ees Florida: = Besta : = Panera city cs 2 — + Georgio: = doe = Cobmour + Mississippi: ee = Hattiesburg e South Caroina: = = creensile # Tennessee: es = = chattancoge = teenie
Slide 17: Liquidity and Balance Sheet Management
Poised for Growth Liquidity and Balance Sheet Management Strong Liquidity Position = Uguidity Ratio: 24.0% at 3/31/19, 23.2% at 12/31/18 ~ (Cosh + Securities + Fed Fund Sold ~ Pledged Securities) / Total Liabilties = Limited Use of Wholesale Funds ~ Net Non-Core Funding Dependence: 1.3% at 3/31/19,
Slide 18: Achievement of 2018 Strategic Objectives
What We've Done Achievement of 2018 Strategic objectives A successtul ‘acquisition and integration of The Peoples Bank Miccsup of the Bank's Pump House Plaza office complexin Birmingham & continues growth in existing metropolitan markets &f mortgage Division growth A continued deployment of enhanced
Slide 19: Successful Expansion through Acquisition of The Peoples Bank
What We've Done Successful Expansion through Acquisition of The Peoples Bank Acquisition Date: August 31, 2018 = $155mifon in eorning assets and $140 milion in deposis ~ Abranchesin Tennessee and southwest Viginia ~ Provides foothold in the vibrant Knoxvile, TN morket ~ Access to low-cost deposits i
Slide 20: Successful Organic Expansion in Birmingham
What We've Done Successful Organic Expansion in Birmingham = Loan Production Office Opened April 2016 = Constructed “Pump House Plaza” office complex = Movedcorporate headquartersin @3.2017 = Includes |. yare foot branch = Loan growth: $72.9 millionin Birminghamsince 2016 * Deposit growth: $63.9 mil
Slide 21: Established New Loan Production Office in Mobile
What We've Done Rob Downin Established New Loan Production Office in Mobile nor resent Opened April 2019 Mobile banking veteran Rob Downing tapped to lead } Will augment commercial lending efforts in Southwest Alabama 95 miles from Thomasville, AL Second largest city and third largest MSA in the sta
Slide 22: Established Mortgage Division in 2017
What We've Done Established Mortgage Divisionin 2017 Key entry point in new markets = Secondary market fees earned = $103,000 in QI 2019 — $507,000 in 2018 = $211,000 in 2017 + 4mortgage lenders as of 3/31/19 =- 2in Birmingham, | in Knoxville, | in Southwest Alabama * Relationships established with
Slide 23: Modernized Technology While Maintaining Cost Discipline
What We've Done, Modernized Technology While Maintaining Cost Discipline Cost neutral postioning maintained while redeploying dollars to rebuid infrastructure and expand product offerings Increased expense in 2018 due to addition of The Peoples Bank ALC adds substantialexpense, butwith the benefits
Slide 24: 2019 and Beyond
Where We're Headed 2019 and Beyond O Protect our Core Values: Ethical Conduct, Responsiveness, Professionalism, Stewardship O increase Shareholder Value QO Improve Customer Satisfaction Q Enhance Digital Bank Offerings O Take Advantage of Strong Positioning for Growth Organically or through Acquisit
Slide 25: 2018 Financial Highlights
Appendix A 2018 Financial Highlights * 2018 organic loan growth = $21.8milion, or 6.2% = Bank:$12.8milion organic growth = ALC:$9.0million organic growth, generated throughindirect point-of-sale retail opportunities = Annuaized yield on interest-eaming assets: 6.1 1%in Q4 2018, compared to 5.65%in Q
Slide 26: 2018 Financial Highlights
Appendix A 2018 Financial Highlights = Non-interestincome = Increase of 18.8% comparing 201810 2017 = Primary driver: settlement of derivative contracts during Q3 2018 that resulted in a pre-tax gain of approximately $1.0 millon = Non-interest expense = Increase of 13.6% comparing 201810 2017 = Non-
Slide 27: Selected Balance Sheet Information
Selected Balance Sheet Information Quarterly Comparison (dollars in thousands) 153.949 $ 159,496 § $ investment Securities Loans, Net of Alowance for Loan and Lease Losses |§ 2760$ 514.867 [ene Is ESE Totol Assets s 791999 $ 95 — 634096$ 627.310 Deposits |s 7oassis 7047253 715761 saiazes 525274 (ota
Slide 28: Income Statements
Income Statements Quarterly Comparison (dollars in thousands, except per share data) Totalinterest income Total Net intrest income \s 7502/§ 714 OE is00 $6 TotalNominterest Expense | 7492 751 SEARS | al il Reese ys Ce Is Gos $1 007 Diuted Net income per share $ co $00 Ree Is om $002 FIRST US BANCSHA
Slide 29: Selected Balance Sheet Information
Selected Balance Sheet Information Annual Comparison (dollars in thousands) Investment Securities \s 153,949 § 180,150 $ 207.814$ 231,202 $ 234,084) Loans, Net of Allowance for Loan and Lease Losses \s 514867 $ 346,121 $ — 322772$ 255,432 $ 259,514) ‘OREO IR 1,505 $ 3.792 $ 4858 $ 6.038 $ 7.735] Tot
Slide 30: Income Statements
Income Statements Annual Comparison (dollarsin thousands, except per share data) Yeor Ended Totalnteret income \s $910 $08 § ONT§ Ss otal interest Expense | 2706 22 2289 Not interest income |S 27ee)§ zeare|§ | z7004|$ 7400 6 | 2000 | | 2022 1587 2 é a } \s aor |§ $ ams | 166 520 | ue) | 7.95 | a Pro
Slide 31: Capital Ratios
Capital Ratios Re-leveraged through The Peoples Bank acquisition Common Equity | Risk-based Capital Tier 1 Tier 1 Capital Leverage | Bepeneeeenna 19.01% 20.26% 12.27% December31, 2017 18.41% 19.60% 11.89% | December31, 2018 12.62% 13.53% 8.96% March 31, 2019 12.81% 13.69% 9.22% | Well-Capitalized 6.
Slide 32: Non-GAAP Reconciliation
Appendix B Non-GAAP Reconciliation (dollars and shares in thousands, except per share data) Jinarcooaa z | a8 4 | rei eset | # reo 4 maser $raee wseou sand smear san “ 78 = | zl Tengible common som sues mel + or a a | | Sosy $s srs ¢ meas gga § Tama 87a # LI [Eien © ize ls sms as mess ad saa san [Co
Slide 33: www.firstusbank.com
FIRST US BANCSHARES, INC. WwWw.firstusbank.com.
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