First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (February 2022)
34 slides from First Us Bancshares's investor presentation, Feb 16, 2022
Slide 1: Investor Presentation As of December 31, 2021
Investor Presentation As of December 31, 2021 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………………………………………………………………………………...…………..9 4Q2021 Highlights……………………………...……………………….…………………..…………...12 Financial Results through December 31, 2021…........………………….……………….……….….19 Risk Management – Capital, Liquidity
Slide 5: First US Bancshares, Inc.
FIRST US BANCSHARES, INC. = Company Founded: 1952 = Tangible BV: $13.28 per share "Headquarters: Birmingham, AL = Exchange NASDAQ: FUSB = First US Bank 15 Branches ("! /2 LPOs = Stock Price $10.57 "Acceptance Loan Co: 0 Branches ( "Price to TBV: 79.6% = Total Assets: $958 million = Market Cap: $65.2
Slide 6: Corporate Profile Senior Leadership Team
Corporate Profile Senior Leadership Team 6
Slide 7: First US Bank – Branch and LPO Location Map
7 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 8 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
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 10
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: 4Q2021 net income and full-year 2021 results
12 4Q2021 net income of $1.7 million and diluted EPS of $0.25; 104.4% increase compared to 3Q2021 Earnings improved due to reduction of non-interest expense following the implementation of the ALC dissolution strategy Pre-tax expense reductions of $1.3 million at ALC comparing 4Q2021 to 3Q2021 4Q202
Slide 13: 4Q2021 Highlights: Loan Growth
4Q2021 Highlights Completed full-year 2021 Loan Growth of $71.1 million, or 11.1% (excluding PPP Loans) Growth driven by Indirect, Construction, CRE and C&I 13
Slide 14: A Focus on the Indirect Portfolio
4Q2021 Highlights A focus on the Indirect Portfolio Significant growth due to state expansion and consumer choices during pandemic Enhanced earnings (average yields approximately 6.0%) Strong credit quality (average credit scores in the mid-700s) Enhanced geographic diversification of the loan portf
Slide 15: Indirect by Collateral and by State
4Q2021Highlights A Focus on the Indirect Portfolio 15 Indirect by Collateral as of 12/31/2021(1) Indirect by State as of 12/31/2021(1)(2) (1) Dollars in thousands (2) Represents state in which the participating dealer operates
Slide 16: Quarter Annualized Margin Report
4Q2021 Highlights 5 Quarter Annualized Margin Report – A challenging interest rate environment continues 16 (1) Average Rate on Interest-Bearing Liabilities and Non-Interest-Bearing Deposits
Slide 17: Asset Quality – Net Charge-offs
4Q2021 Highlights Asset Quality – Full-year net charge-offs of 16 basis points in 2021, compared to 20 basis points in 2020 17
Slide 18: Asset Quality – Increase in NPAs and NPLs
4Q2021 Highlights Asset Quality – Increase in NPAs and NPLs following branch closures and ALC dissolution strategy 18 Nonperforming loans represent loans in nonaccrual status, while nonperforming assets includes both nonaccrual loans and OREO. Nonaccrual loans increased in 4Q2021 following implement
Slide 19: Profitability Metrics
Financial Results Profitability Metrics 19 (1) Calculations of tangible balances and measures are included in the Appendix
Slide 20: Balance Sheet Metrics
Financial Results Balance Sheet Metrics 20
Slide 21: Non-interest Income and Expense
Financial Results Non-interest Income and Expense 21 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 22: Share Price vs. Tangible Book Value
Financial Results Share Price vs. Tangible Book Value (80% as of 12/31/2021)(1) 22 (1) Calculations of tangible balances and measures are included in the Appendix
Slide 23: Selected Financial Data
23 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 24: Selected Balance Sheet Information
Financial Results Selected Balance Sheet Information (dollars in thousands) 24
Slide 25: Income Statements
Financial Results Income Statements (dollars in thousands, except per share data) 25
Slide 26: Risk Management Equity Capital
Risk Management Equity Capital: Bank capital levels boosted in Q4 by $5.0 million investment from First US Bancshares, Inc. 26 (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
Slide 27: Managing Investment Risk and Liquidity
Risk Management Managing Investment Risk and Liquidity 27 Summary of Securities Portfolio The portfolio is structured with relatively short expected average lives in order to enhance liquidity Weighted average book yield was 1.40% in 4Q2021 Expected average life of securities in the portfolio is 3.7
Slide 28: Interest Rate Sensitivity
28 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 29: Loans in COVID-19 deferment status
29 Risk Management Loans in COVID-19 deferment status
Slide 30: COVID-19 at-risk categories remain a small portion of the portfolio
Risk Management COVID-19 at-risk categories remain a small portion of the portfolio 30
Slide 31: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 32: Non-GAAP Reconciliation
32 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 33: Non-GAAP Reconciliation
33 Appendix Non-GAAP Reconciliation (dollars and shares in thousands, except per share data)
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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