First US Bancshares (FUSB) investor relations material

Executive summary

• Net income for Q1 2026 was $1.9 million ($0.33 per diluted share), up from $1.8 million ($0.29 per diluted share) in Q1 2025, but down from $2.1 million ($0.36) in Q4 2025, driven by higher interest income and lower provision for credit losses.

• Diluted EPS increased 13.8% year-over-year; core deposit franchise grew despite a modest decline in total loan volume.

• Total assets increased to $1,165.2 million as of March 31, 2026, up 0.9% from December 31, 2025.

• The company operates one banking subsidiary focused on commercial and consumer banking, including indirect lending in 17 states.

• Management highlights a well-positioned balance sheet amid ongoing geopolitical and economic volatility.

Financial highlights

• Net interest income was $9.2 million, up 3.6% year-over-year but down 2.2% sequentially, as average interest-earning assets grew by 8.4%.

• Net interest margin declined to 3.37% from 3.53% in Q1 2025 and 3.46% in Q4 2025 due to asset yields falling faster than liability costs.

• Provision for credit losses decreased to $0.3 million from $0.5 million, reflecting slower loan growth.

• Non-interest income was $0.8 million, down from $1.0 million in Q4 2025 and $0.9 million in Q1 2025, while non-interest expense increased 6.1% to $7.3 million, mainly from higher professional fees, occupancy, and salaries.

• Total loans declined by $9.3 million (1.1%) during the quarter, with growth in multi-family and indirect lending offset by declines in construction, non-residential CRE, and C&I loans.

• Deposits rose by $10.9 million (1.1%), with core deposits making up 82.2% of total deposits, driven by interest-bearing demand deposits.

• Shareholders' equity was $104.6 million (9.0% of assets), slightly down due to share repurchases and higher accumulated other comprehensive loss.

Outlook and guidance

• Management expects continued challenges from economic, geopolitical, and policy uncertainty, with competitive pressures on deposits and net interest margin, but believes the balance sheet is resilient for multiple scenarios.

• The new banking center in Daphne, Alabama, is expected to open in Q2 2026, supporting deposit growth.