First US Bancshares, Inc. (Nasdaq: FUSB) announced its financial results for the first quarter of 2024 with a net income of $2.1 million, or $0.34 per diluted share. This figure compares to $2.3 million in the previous quarter and $2.1 million for the same period last year.
CEO James F. House expressed satisfaction with the company's performance, stating, "We are off to a solid start for 2024." He added, "During the early months of 2024, we are taking advantage of market opportunities to improve asset yields, while simultaneously working to control expenses, and strengthen our balance sheet positioning."
Key highlights from the financial report include a modest increase in total loan volume, a decrease in net interest income, and a reduction in total deposits during the first quarter of 2024. The company's net interest margin was 3.65% in 1Q2024, compared to 3.67% in the previous quarter and 4.13% in the first quarter of 2023.
As of March 31, 2024, the company's total deposits decreased by $6.9 million, primarily due to changes in non-interest bearing and interest-bearing accounts. However, the company maintained excess funding capacity to support loan growth and ongoing operations.
Regarding asset quality, nonperforming assets remained stable at $3.0 million, representing 0.28% of total assets. The company recorded no provision for credit losses during 1Q2024, a change from the previous quarter.
"We are pleased with our first-quarter results and expect continued benefit as we move through 2024," House commented. The company declared a cash dividend of $0.05 per share on its common stock for 1Q2024, consistent with the previous year.
Looking ahead, First US Bancshares, Inc. is progressing with its anticipated banking center growth strategy, including the opening of a new banking center in Knoxville, Tennessee, and acquiring a banking center office in Daphne, Alabama. These expansions are expected to enhance the company's presence in these regions.
First US Bancshares, Inc. operates banking offices in Alabama, Tennessee, and Virginia through First US Bank. The company's stock is traded on the Nasdaq Capital Market under the symbol "FUSB."
The company's forward-looking statements and financial measures, including liquidity and tangible equity, reflect its commitment to transparency and strategic growth in the banking sector.