First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (January 2020)
36 slides from First Us Bancshares's investor presentation, Jan 28, 2020
Slide 1: Investor Presentation As of December 31, 2019
Investor Presentation As of December 31, 2019 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation of First US Bancshares, Inc. (“FUSB”) 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 address issues t
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…….…………………………..………………………………………………………....9 Strategic Achievements …………..…………………………........................……………………...20 Appendix A: Historical Information……………………………………...…………………………..25 Appendix B: Non-GAAP Reconcili
Slide 5: Corporate Profile
Company Founded:1952 Headquarters:Birmingham, AL First US Bank:20 Branches / 2 LPOs Acceptance Loan Co:21 Branches Total Assets:$789 million Net Loans:$545 million Total Deposits:$684 million Tangible BV:$12.33 per share (1) Exchange:NASDAQ: FUSB Stock Price:$11.61 Price to TBV:94.2% (1) Market Cap:
Slide 6: An Experienced Management Team
Corporate Profile An Experienced Management 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 wit
Slide 7: First US Bank – Branch and LPO Location Map
First US Bank – Branch and LPO Location Map
Slide 8: Acceptance Loan Company – Branch Location Map
Acceptance Loan Company – Branch Location Map
Slide 9: Strategic Focus: Create a diversified balance sheet
Near term: Generate organic loan growth Prudently manage the balance sheet in current interest rate environment Maintain discipline in deposit funding costs Use hedging strategies where appropriate Lending efforts focused on: Commercial real estate lending with cash flow coverage of ≥1.25x Commercia
Slide 10: Enhance balance sheet diversification
Enhance balance sheet diversification: Focus on indirect lending, branded through First US Bank (currently operational in 11 states) Grow commercial loans in diverse metropolitan markets Follow loan growth with deposit growth using diverse suite of deposit products Maintain credit quality standards
Slide 11: 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 Na
Slide 12: Building a Diversified Balance Sheet
Strategic Focus Building a Diversified Balance Sheet Loan Composition as of 12/31/2019 Deposit Composition as of 12/31/2019
Slide 13: Selected Financial Data
Quarter Ended Year Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 12/31/2019 12/31/2018 Diluted Net Income per Share $ 0.18 $ 0.16 $ 0.15 $ 0.18 $ 0.22 $ 0.67 $ 0.37 Return on Average Assets (annualized) 0.61% 0.57% 0.51% 0.63% 0.74% 0.58% 0.36% Return on Average Tangible Common Equity (a
Slide 14: Average yields and rates
Quarter Ended Year Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 12/31/2019 12/31/2018 Loans – Bank 5.04% 5.19% 5.26% 5.30% 5.30% 5.19% 4.85% Loans – ALC 16.33% 16.46% 17.37% 17.15% 17.02% 16.81% 17.61% Taxable Investment Securities 2.06% 2.04% 2.12% 2.19% 2.09% 2.11% 2.02% Tax-Exempt In
Slide 15: Return on Average Tangible Common Equity
Strategic Focus Return on Average Tangible Common Equity (ROATCE)(1) 5 Quarter – ROATCE (annualized) 5 Year – ROATCE (1) Calculations of tangible balances and measures are included in Appendix B
Slide 16: Efficiency Ratio
Strategic Focus Efficiency Ratio(1) 5 Quarter – Efficiency Ratio 5 Year – Efficiency Ratio (1) Efficiency ratio = non-interest expense / (net interest income + non-interest income)
Slide 17: Loans to Deposits Ratio
Strategic Focus Loans to Deposits Ratio 5 Quarter – Loans to Deposits Ratio 5 Year – Loans to Deposits Ratio
Slide 18: Tangible Book Value per Common Share
Strategic Focus Tangible Book Value per Common Share(1) 5 Quarter – TBV per Share 5 Year – TBV per Share (1) Calculations of tangible balances and measures are included in Appendix B
Slide 19: Loan Growth
Strategic Focus Loan Growth First US Bank Growth driven by expansion into larger metropolitan markets, including The Peoples Bank acquisition Maintaining adherence to credit standards Average yield FYE 2019 of 5.19%, compared to 4.85% FYE 2018 ALC Continued shift to indirect lending – lower yield, b
Slide 20: Strategic Achievements Year Ended 12/31/19
Strategic Achievements Year Ended 12/31/19 Established loan production offices in Mobile, AL and Chattanooga, TN area in 2019 Continued growth in existing metropolitan markets Successful completion of repurchases of 148,738 FUSB shares in Q3 and Q4 of 2019 Lease-up of the Bank’s Pump House Plaza off
Slide 21: Indirect Sales Transfer to Bank from ALC
Strategic Achievements Indirect Sales Transfer to Bank from ALC Fewer state-by-state barriers to entry More effective marketing under First US Bank name Significantly enhanced consumer loan approval process through existing FUSB branches Better diversification of loan portfolio at Bank level Clarifi
Slide 22: Technological Improvements
Strategic Achievements Technological Improvements Transitioned Bank and ALC to a modern, unified information systems platform Added or upgraded all communication channels to secure, affordable models Further implemented digital banking products and services, allowing the Bank to continue to compete
Slide 23: Modernized Technology While Maintaining Cost Discipline
Strategic Achievements 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 substantial expense,
Slide 24: Appendices
FIRST US BANCSHARES, INC. Appendices
Slide 25: Committed to Sound Credit Policies
Appendix A – Historical Information Committed to Sound Credit Policies Total Classified Assets $75 million reduction in classified assets since 2011 Nonperforming Assets reduced from peak of $47 million to $4.8 million as of 12/31/19 Nonperforming Assets as a % of Total Assets reduced from 5.73% as
Slide 26: First US Bank – Building a Diversified Portfolio
Appendix A – Historical Information First US Bank – Building a Diversified Portfolio C&I and Real Estate enhance diversification Stay within our core competencies Focus on C&I loans with strong cash flows Limited real estate development loans (primarily those acquired through The Peoples Bank acquis
Slide 27: ALC - Enhancing Diversification with Focus on Indirect Sales
Appendix A – Historical Information ALC - Enhancing Diversification with Focus on Indirect Sales Indirect Sales – National and Regional retailers (includes RVs/campers, marine, horse trailers, cargo trailers, limited ATVs) Branch Retail – Local retailers managed through branch network Direct Consume
Slide 28: Share Price vs. Tangible Book Value
Appendix A – Historical Information Share Price vs. Tangible Book Value (94% as of 12/31/2019)(1) (1) Calculations of tangible balances and measures are included in Appendix B
Slide 29: Selected Balance Sheet Information Quarterly Comparison
Appendix A – Historical Information Selected Balance Sheet Information Quarterly Comparison (dollars in thousands) 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 Investment Securities $ 108,356 $ 114,309 $ 136,649 $ 148,025 $ 153,949 Loans, Net of Allowance for Loan and Lease Losses $ 545,243 $
Slide 30: Income Statements Quarterly Comparison
Appendix A – Historical Information Income Statements Quarterly Comparison (dollars in thousands, except per share data) Quarter Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 Total Interest Income $ 10,825 $ 11,027 $ 10,923 $ 10,813 $ 11,177 Total Interest Expense 1,636 1,680 1,690 1,640
Slide 31: Selected Balance Sheet Information Annual Comparison
Appendix A – Historical Information Selected Balance Sheet Information Annual Comparison (dollars in thousands) 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Investment Securities $ 108,356 $ 153,949 $ 180,150 $ 207,814 $ 231,202 Loans, Net of Allowance for Loan and Lease Losses $ 545,243 $ 514,867 $
Slide 32: Income Statements Annual Comparison
Appendix A – Historical Information Income Statements Annual Comparison (dollars in thousands, except per share data) Year Ended 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Total Interest Income $ 43,588 $ 37,138 $ 31,100 $ 30,155 $ 29,897 Total Interest Expense 6,646 4,350 2,706 2,271 2,289 Net In
Slide 33: 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, 2016 19.01% 20.26% 12.27% December 31, 2017 18.41% 19.60% 11.89% December 31, 2018 12.62% 13.53% 8.96% December 31, 2019 1
Slide 34: Non-GAAP Reconciliation: Tangible Balances
Quarter Ended Year Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 12/31/2019 12/31/2018 12/31/2017 12/31/2016 12/31/2015 TANGIBLE BALANCES Total assets $ 788,738 $ 771,930 $ 777,171 $ 795,334 $ 791,939 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 1,390 1,499
Slide 35: Non-GAAP Reconciliation: Tangible Book Value
12/31/2019 6/30/2019 12/31/2018 6/30/2018 12/31/2017 6/30/2017 12/31/2016 6/30/2016 TANGIBLE BOOK VALUE Total shareholders’ equity $ 84,748 $ 83,748 $ 79,437 $ 75,634 $ 76,208 $ 78,373 $ 76,241 $ 78,525 Less: Goodwill 7,435 7,435 7,435 — — — — — Less: Core deposit intangible 1,390 1,621 1,877 — — —
Slide 36: Contact: Thomas S. Elley
www.firstusbank.com Contact: Thomas S. Elley Chief Financial Officer telley@firstusbank.com 205.582.1200
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