The financial report is a quarterly report filed by First US Bancshares, Inc. with the Securities and Exchange Commission. The report covers the period ended March 31, 2024, and includes information about the company’s financial performance, incorporation, principal executive offices, and telephone number.
The Company earned net income of $2.1 million, or $0.34 per diluted share, during the first quarter of 2024. This was comparable to $2.1 million, or $0.33 per diluted share, in the first quarter of 2023.
Net interest income decreased by $0.4 million, or 4.2%, from the first quarter of 2023 to the first quarter of 2024. This was driven by net interest margin compression of 48 basis points as interest-bearing liabilities repriced faster than interest-earning assets. Margin compression slowed in the first quarter of 2024 due to repricing of earning assets and growth in average earning assets.
No provision for credit losses was recorded in the first quarter of 2024 due to modest loan growth, a decrease in unfunded lending commitments and indirect loan fundings. The allowance for credit losses was 1.27% of total loans as of March 31, 2024.
Non-interest income was relatively consistent quarter-over-quarter at $0.9 million.
Non-interest expense decreased to $7.1 million in the first quarter of 2024 from $7.3 million in the first quarter of 2023. This was driven by the recovery of check fraud losses and an overall reduction in salaries and benefits from lower staff levels.
Total loans increased by $1.2 million, or 0.1%, from December 31, 2023 to March 31, 2024. Growth was driven by multi-family construction lending, partially offset by reductions in other categories.
Total deposits decreased to $943.3 million as of March 31, 2024 from $950.2 million as of December 31, 2023. Core deposits were 85.6% of total deposits.
Sustained margin compression is expected to continue in the near term due to high inflation, rising interest rates, and a competitive environment. Margin compression could negatively impact net interest income if interest rates change significantly.
Sustained high inflation and rising interest rates could negatively impact borrowers and lead to increased provisions for credit losses.
The Company is focused on deposit gathering expansion in current and new markets, including the expected opening of a new Knoxville banking center and a new location in Daphne, Alabama.