First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (November 2021)
34 slides from First Us Bancshares's investor presentation, Nov 10, 2021
Slide 1: Investor Presentation As of September 30, 2021
Investor Presentation As of September 30, 2021
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……………………………………………………………………………………………..9 3Q2021 Highlights……………………………...……………………….………………………………...12 Financial Results through September 30, 2021…........………………….………………………….21 Risk Management – Capital, Liquidity and
Slide 5: Corporate Profile
Company Founded:1952 Headquarters:Birmingham, AL First US Bank:15 Branches (1) / 2 LPOs Acceptance Loan Co:0 Branches (2) Total Assets:$957 million Net Loans:$697 million Total Deposits:$847 million Tangible BV:$13.10 per share (3) Exchange:NASDAQ: FUSB Stock Price:$10.70 Price to TBV:81.7% (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: Corporate Profile: First US Bank – Branch and LPO Location Map
Corporate Profile: First US Bank – Branch and LPO Location Map
Slide 8: Acceptance Loan Company: Summary of Recent Events
Corporate Profile Acceptance Loan Company: Summary of Recent Events On September 3, 2021, the Bank’s wholly-owned subsidiary, Acceptance Loan Company, Inc. (“ALC”), ceased new business development and permanently closed its 20 branch lending locations in Alabama and Mississippi to the public. ALC wi
Slide 9: 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 10: Building and Maintaining a Diversified Balance Sheet
Strategic Focus Building and Maintaining a Diversified Balance Sheet Loan Composition as of 9/30/2021 Deposit Composition as of 9/30/2021
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 Nash
Slide 12: Net income of $0.8 million and diluted EPS of $0.13
Net income of $0.8 million and diluted EPS of $0.13 Net income and diluted EPS declined compared to 2Q2021 due to one-time expenses associated with ALC closures Diluted EPS increased by $.07 per diluted share from 3Q2020 due to an increase in net interest income, a decrease in provision for loan los
Slide 13: Loan Growth driven by Indirect Sales, CRE and C&I
3Q2021 Highlights Loan Growth of $19.3 million driven by Indirect Sales, CRE and C&I
Slide 14: A focus on the Indirect Portfolio
3Q2021 Highlights A focus on the Indirect Portfolio Significant growth from leisure activity choices during pandemic Enhances earnings (average yields approximately 6.0%) Strong credit quality (average credit scores in the mid-700s) Enhances geographic diversification of the loan portfolio This port
Slide 15: A Focus on the Indirect Portfolio: Collateral and State
3Q2021Highlights A Focus on the Indirect Portfolio Indirect Sales by Collateral as of 9/30/2021(1) Indirect Sales by State as of 9/30/2021(1)(2) (1) Dollars in thousands (2) Represents state in which the participating dealer operates
Slide 16: Quarter Margin Report (Annualized)
3Q2021 Highlights 5 Quarter Margin Report (Annualized) – A challenging interest rate environment continues (1) Average Rate on Interest-Bearing Liabilities and Non-Interest-Bearing Deposits 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 Total Loans 6.24% 6.06% 5.89% 5.76% 5.49% Taxable Investment Securities 1.6
Slide 17: Asset Quality – Net charge-offs
3Q2021 Highlights Asset Quality – Net charge-offs remain at less than 30 basis points ALLL as a % of loans excludes PPP loans, which are guaranteed by the SBA 5 Quarter Net Charge-offs
Slide 18: Asset Quality – Nonperforming assets and loans
3Q2021 Highlights Asset Quality – Increase in NPAs due to closed Bank branches reclassified into OREO, NPLs continue to decline Nonperforming assets include non-accrual loans and OREO Nonperforming loans include non-accrual loans Nonperforming Assets (1) Nonperforming Loans (2)
Slide 19: Loans in COVID-19 deferment status
3Q2021 Highlights Loans in COVID-19 deferment status As of June 30, 2020 As of December 31, 2020 As of September 30, 2021 # of Loans Deferred Balance of Loans Deferred % of Portfolio Balance # of Loans Deferred Balance of Loans Deferred % of Portfolio Balance # of Loans Deferred Balance of Loans Def
Slide 20: COVID-19 at-risk categories remain a small portion
3Q2021 Highlights COVID-19 at-risk categories remain a small portion of the portfolio September 30, 2021 December 31, 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
Slide 21: Selected Financial Data
Quarter Ended Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Diluted Net Income per Share $ 0.13 $ 0.14 $ 0.14 $ 0.15 $ 0.06 $ 0.41 $ 0.25 Return on Average Assets (annualized) 0.35% 0.41% 0.43% 0.48% 0.19% 0.39% 0.27% Return on Average Tangible Common Equit
Slide 22: Selected Balance Sheet Information
Financial Results Selected Balance Sheet Information (dollars in thousands) As of 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Cash and Federal Funds Sold $ 75,342 $ 81,906 $ 125,951 $ 94,500 $ 65,729 Investment Securities $ 121,467 $ 123,583 $ 75,783 $ 91,422 $ 93,405 Loans, Net of Allowance
Slide 23: Income Statements
Financial Results Income Statements (dollars in thousands, except per share data) Quarter Ended Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Total Interest Income $ 10,030 $ 10,059 $ 9,845 $ 10,204 $ 9,996 $ 29,934 $ 30,173 Total Interest Expense 695 747 7
Slide 24: Profitability Metrics
Financial Results Profitability Metrics
Slide 25: Balance Sheet Metrics
Financial Results Balance Sheet Metrics
Slide 26: Share Price vs. Tangible Book Value
Financial Results Share Price vs. Tangible Book Value (82% as of 9/30/2021)(1) (1) Calculations of tangible balances and measures are included in the Appendix
Slide 27: Non-interest Income and Expense
Financial Results Non-interest Income and Expense Non-interest Income Additional Detail Additional sources of non-interest income include: Credit insurance commissions and fees Bank-owned life insurance Gains on the sales of premises and equipment and other assets Non-interest Expense
Slide 28: Risk Management: Equity Capital
Risk Management Equity Capital: Shift downward due to deposit and loan growth (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-c
Slide 29: Maintaining Strong Liquidity
Risk Management Maintaining Strong Liquidity Investment Portfolio Composition (Book Value) As of 9/30/2021 Portfolio Detail as of 9/30/2021 (in $000s) Book Value Market Value Unrealized Gain/Loss MBS - Commercial $ 30,407 $ 30,847 $ 440 MBS - Residential $ 44,271 $ 45,066 $ 795 Municipal $ 4,840 $ 4
Slide 30: Interest Rate Sensitivity
Interest Rate Scenario Net Interest Margin Impact (bps) Net Interest Income Impact (%) Next 12 Months Next 24 Months Next 12 Months Next 24 Months Up 300 basis points (4) 3 (1.1)% 0.7% Up 200 basis points 5 11 1.4% 2.7% Up 100 basis points 5 8 1.3% 2.0% Base 0 0 0.0% 0.0% Down 100 basis points (9) (
Slide 31: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 32: Non-GAAP Reconciliation: Tangible Balances
Quarter Ended Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 TANGIBLE BALANCES Total assets $ 956,734 $ 946,946 $ 926,535 $ 890,511 $ 852,941 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 707 792 884 975 1,067 Tangible assets (a)
Slide 33: Non-GAAP Reconciliation: Tangible Book Value
9/30/2021 6/30/2021 12/31/2020 6/30/2020 12/31/2019 6/30/2019 12/31/2018 6/30/2018 TANGIBLE BOOK VALUE Total shareholders’ equity $ 89,597 $ 88,778 $ 86,678 $ 85,281 $ 84,748 $ 83,748 $ 79,437 $ 75,634 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 7,435 7,435 — Less: Core deposit intangible 707 792 9
Slide 34: www.firstusbank.com Contact
www.firstusbank.com Contact: Thomas S. Elley Chief Financial Officer telley@firstusbank.com 205.582.1200
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