First US Bancshares, Inc. reported first‑quarter 2026 results that showed a net income of $1.945 million, translating to $0.33 per diluted share. The earnings per share fell 13.8% from $0.36 in the fourth quarter of 2025, but were up from $0.29 in the same quarter a year earlier, indicating a modest rebound in profitability after a dip in the prior quarter.
Interest income for the quarter was $14.940 million, slightly lower than the $15.262 million recorded in 2025. Interest expense rose to $5.725 million from $5.839 million, pushing net interest income down to $9.215 million—a decline of $208 thousand. The net interest margin contracted to 3.37% from 3.46% in the prior quarter, reflecting the bank’s exposure to a high‑rate environment and competitive pressure on deposit rates.
Non‑interest income fell to $840 thousand from $995 thousand, while non‑interest expense increased to $7.341 million, driven by higher professional and collection costs. The provision for credit losses grew to $254 thousand from $220 thousand, and the allowance for credit losses on loans and leases remained at 1.25% of total loans. The loan portfolio contracted by $9.3 million, largely due to declines in construction, non‑residential commercial real estate, and corporate & industrial loans, but the core deposit franchise grew by $10.9 million, reaching 82.2% of total deposits.
Total assets stood at $1.165 billion, up modestly from $1.154 billion, while total deposits rose to $1.039 billion. The bank’s common equity Tier 1 ratio remained strong at 10.85%, and the total capital ratio held at 11.99%. First US Bancshares declared a quarterly dividend of $0.07 per share, unchanged from the previous year’s four quarters. CEO James F. House noted, "We are pleased to report a solid start to the year. First quarter 2026 diluted earnings per share improved by 13.8% compared to the same quarter of 2025. Although we saw a modest decline in total loan volume during the quarter, some of which was seasonal, we experienced growth in our core deposit franchise."
Management added, "While the year is certainly off to a volatile start from a geopolitical and economic standpoint, we continue to believe that the Company's balance sheet is well positioned to thrive in multiple scenarios." The earnings decline signals ongoing margin pressure in a high‑rate environment, but the bank’s focus on core deposit growth, strict credit standards, and expense control suggests a strategy aimed at sustaining earnings per share and return on equity in the face of competitive funding costs and a contracting loan book.
The bank’s strategy includes expanding digital banking, opening new loan production offices, and exploring potential acquisitions to diversify revenue streams. The modest loan contraction, coupled with a robust core deposit base and strong capital ratios, positions First US Bancshares to navigate short‑term headwinds while maintaining a trajectory of earnings growth over the long term.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.