First Us Bancshares, Inc. · NASDAQ:FUSB
First Us Bancshares — Investor Presentation (May 2020)
36 slides from First Us Bancshares's investor presentation, May 29, 2020
Slide 1: Investor Presentation As of March 31, 2020
Investor Presentation As of March 31, 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 Q1 2020 Highlights...…………………………..……………………………………………………….....9 Strategic Focus ……………………..…………………………........................……………………....15 Financial Results………………………………………………………………………………………….19 Appendix A: Historical Information……………
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:$540 million Total Deposits:$683 million Tangible BV:$12.31 per share (1) Exchange:NASDAQ: FUSB Stock Price:$6.14 Price to TBV:49.9% (1) Market Cap:
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 BankTrus
Slide 7: Corporate Profile: First US Bank – Branch and LPO Location Map
Corporate Profile: First US Bank – Branch and LPO Location Map
Slide 8: Corporate Profile: Acceptance Loan Company – Branch Location Map
Corporate Profile: Acceptance Loan Company – Branch Location Map
Slide 9: Q1 2020 Highlights: Management actions and COVID-19 response
Immediate management actions: Activated Company’s pandemic contingency plan Increased monitoring of Company’s capital and liquidity positions Increased cleaning and sanitation of our facilities Additional communication to ensure digital offerings are understood by customers Suspension of non-essenti
Slide 10: Q1 2020 Highlights: Net interest margin and loan loss provision
Net interest margin decrease of 20 basis points ($287,000) Interest-bearing assets repriced at faster pace than interest-bearing liabilities Average yield on interest-bearing assets reduced to 5.81% from 6.10% Average cost of funds reduced to 0.87%, compared to 0.95% Headwinds expected to continue f
Slide 11: Q1 2020 Highlights: Loans and deposits
Total loans decreased by $5.1 million (0.9%) from December 31, 2019 to March 31, 2020 Decrease driven by C&I ($10.2 million), Real estate secured ($16.9 million) and direct consumer and branch retail ($2.5 million) Decrease partially offset by growth of $24.5 million in indirect sales portfolio Indi
Slide 12: Q1 2020 Highlights: Indirect Sales Transfer to Bank from ALC
Q1 2020 Highlights 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 Clarificati
Slide 13: At-Risk Loan Categories due to COVID-19
March 31, 2020 At-Risk Loan Category Due to COVID-19 Balance of Risk Category % of Total Loan Balance High-Risk Loan Categories: Hotels/Motels $ 10,479 1.9% Dine-in Restaurants 4,508 0.8% Total High-Risk Loans 14,987 2.7% Moderate-Risk Loan Categories: Fast Food Restaurants 5,067 0.9% Retail 34,073
Slide 14: Loan Deferments Due to COVID-19
As of April 30, 2020 Number of Loans Deferred Principal Balance of Loans Deferred % of Portfolio Balance as of 3/31/2020 Principal and Interest Deferments Principal Only Deferments Loans Secured by Real Estate: Construction and Land 3 $ 16,666 52.2% $ 9,513 $ 7,153 1-4 Family 71 11,549 11.5% 9,368 2
Slide 15: Strategic Focus: Near-term and longer-term objectives
Near term: Effectively serve customers in uncertain environment Seek prudent loan growth Maintain credit and pricing discipline Continue focus on growth in indirect lending Reprice time deposits consistent with interest rate environment Lending efforts focused on: Commercial real estate lending with
Slide 16: Strategic Focus: 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 17: Strategic Focus: Growing a Diversified Loan Portfolio
Strategic Focus Growing a Diversified Loan Portfolio
Slide 18: Strategic Focus: Building a Diversified Balance Sheet
Strategic Focus Building a Diversified Balance Sheet Loan Composition as of 3/31/2020 Deposit Composition as of 3/31/2020
Slide 19: Financial Results: Selected Financial Data
Quarter Ended Year Ended 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2019 12/31/2018 Diluted Net Income per Share $ 0.13 $ 0.18 $ 0.16 $ 0.15 $ 0.18 $ 0.67 $ 0.37 Return on Average Assets (annualized) 0.43% 0.61% 0.57% 0.51% 0.63% 0.58% 0.36% Return on Average Tangible Common Equity (an
Slide 20: Financial Results: Yields and Rates
Quarter Ended Year Ended 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2019 12/31/2018 Total Loans 7.07% 7.29% 7.45% 7.68% 7.66% 7.52% 7.95% Taxable Investment Securities 2.05% 2.04% 1.99% 2.10% 2.17% 2.08% 1.99% Tax-Exempt Investment Securities 3.38% 2.83% 2.80% 2.74% 2.76% 2.78% 3.41% F
Slide 21: Return on Average Tangible Common Equity (ROATCE)
Financial Results 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 22: Efficiency Ratio
Financial Results Efficiency Ratio(1) 5 Quarter – Efficiency Ratio 5 Year – Efficiency Ratio (1) Efficiency ratio = non-interest expense / (net interest income + non-interest income)
Slide 23: Loans to Deposits Ratio
Financial Results Loans to Deposits Ratio 5 Quarter – Loans to Deposits Ratio 5 Year – Loans to Deposits Ratio
Slide 24: Tangible Book Value per Common Share
Financial Results 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 25: Appendices
FIRST US BANCSHARES, INC. Appendices
Slide 26: Appendix A: Committed to Sound Credit Policies
Appendix A – Historical Information Committed to Sound Credit Policies Total Classified Assets $77 million reduction in classified assets since 2011 Nonperforming Assets reduced from peak of $47 million to $4.7 million as of 3/31/2020 Nonperforming Assets as a % of Total Assets reduced from 5.73% as
Slide 27: Appendix A: 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: Appendix A: Selected Balance Sheet Information Quarterly Comparison
Appendix A – Historical Information Selected Balance Sheet Information Quarterly Comparison (dollars in thousands) 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 Investment Securities $ 110,079 $ 108,356 $ 114,309 $ 136,649 $ 148,025 Loans, Net of Allowance for Loan and Lease Losses $ 539,685 $
Slide 29: Appendix A: Income Statements Quarterly Comparison
Appendix A – Historical Information Income Statements Quarterly Comparison (dollars in thousands, except per share data) Quarter Ended 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 Total Interest Income $ 10,397 $ 10,825 $ 11,027 $ 10,923 $ 10,813 Total Interest Expense 1,511 1,636 1,680 1,690
Slide 30: Appendix A: 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 31: Appendix A: 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 32: Appendix A: 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% March 31, 2020 13.28
Slide 33: Appendix A: Share Price vs. Tangible Book Value
Appendix A – Historical Information Share Price vs. Tangible Book Value (50% as of 3/31/2020)(1) (1) Calculations of tangible balances and measures are included in Appendix B
Slide 34: Appendix B: Non-GAAP Reconciliation – Tangible Balances
Quarter Ended Year Ended 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2019 12/31/2018 12/31/2017 12/31/2016 TANGIBLE BALANCES Total assets $ 788,565 $ 788,738 $ 771,930 $ 777,171 $ 795,334 Less: Goodwill 7,435 7,435 7,435 7,435 7,435 Less: Core deposit intangible 1,280 1,390 1,499 1,621
Slide 35: Appendix B: Non-GAAP Reconciliation – Tangible Book Value
3/31/2020 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 $ 84,332 $ 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 1,280 1,390 1,621 1,
Slide 36: 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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