First US Bancshares, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing a modest increase in net income and total assets compared to the previous fiscal period. The company’s net income for the third quarter was $2.2 million, or $0.36 per diluted share, up from $2.1 million, or $0.33 per diluted share, in the same quarter of 2023. For the nine months ended September 30, 2024, net income reached $6.5 million, compared to $6.2 million in the prior year.

Total interest income for the third quarter increased to $15.0 million from $13.9 million year-over-year, while net interest income for the nine months decreased to $27.4 million from $28.2 million, reflecting a decline in the net interest margin from 3.93% to 3.65%. The increase in interest income was attributed to higher average yields on interest-earning assets, driven by rising market interest rates. However, interest expense also rose significantly, leading to a tighter margin.

Total assets as of September 30, 2024, were $1.1 billion, a 2.5% increase from $1.07 billion at the end of 2023. Total deposits rose to $981.1 million, up from $950.2 million, with core deposits comprising 85% of total deposits. The company’s cash and cash equivalents increased to $82.3 million from $50.3 million, indicating improved liquidity.

The loan portfolio decreased by 2.2% to $803.3 million, primarily due to payoffs of construction loans. Notably, the company dissolved two wholly owned subsidiaries in 2023, transferring their assets and liabilities to the bank, which may have contributed to the changes in the loan portfolio.

Nonperforming assets increased to $6.6 million, up from $3.0 million at the end of 2023, with non-accrual loans also rising to $6.1 million. The allowance for credit losses on loans and leases was 1.26% of total loans, slightly down from 1.28% at year-end 2023.

In terms of strategic developments, the company opened a new banking center in Bearden, Knoxville, Tennessee, and began renovations on another center in Daphne, Alabama, expected to open in 2025. The company also repurchased 106,500 shares of common stock during the nine months, maintaining a focus on shareholder returns.

Overall, First US Bancshares, Inc. demonstrated resilience in a challenging market environment, with strategic initiatives aimed at enhancing operational efficiency and expanding its banking footprint.