First US Bancshares Reports $1.8 Million Net Income for Q2 2026

First US Bancshares, Inc. reported its financial results for the second quarter of 2026, revealing a net income of $1.8 million, or $0.31 per diluted share, compared to $0.2 million, or $0.03 per diluted share, for the same period in 2025. For the first half of 2026, net income totaled $3.7 million, or $0.64 per diluted share, up from $1.9 million, or $0.32 per diluted share, in the prior year. The increase in net income was primarily attributed to a significant reduction in the provision for credit losses, which fell to $1.2 million from $3.2 million year-over-year, alongside realized gains from the sale of investment securities.

Total assets as of June 30, 2026, were $1.15 billion, a slight decrease from $1.15 billion at the end of 2025. The company’s loan portfolio increased by $7.6 million, or 0.9%, driven by growth in construction and consumer indirect loans, although this was partially offset by declines in non-residential commercial real estate loans. The allowance for credit losses on loans and leases stood at $10.9 million, representing 1.26% of total loans, a marginal increase from 1.25% at the end of 2025.

In terms of deposits, First US Bancshares experienced a decrease of $30 million, or 2.9%, during the first half of 2026, primarily due to the maturation of wholesale brokered time deposits. Core deposits, which exclude larger time deposits and brokered deposits, accounted for 83.7% of total deposits, reflecting a stable funding base. The company opened a new banking center in Daphne, Alabama, and acquired an office in Orange Beach, Alabama, which is expected to enhance its deposit gathering capabilities.

The company’s non-interest income rose to $2.2 million for the first half of 2026, compared to $1.7 million in the same period of 2025, largely due to gains on the sale of investment securities. Non-interest expenses increased to $15 million, up from $14.4 million, driven by inflationary pressures and expansion-related costs. The company declared cash dividends of $0.14 per share during both the first halves of 2026 and 2025, while also repurchasing 237,500 shares of its common stock at an average price of $15.33 per share.

Looking ahead, First US Bancshares remains focused on enhancing its loan portfolio diversification and maintaining a strong liquidity position. The company continues to monitor economic conditions and competitive pressures, particularly in the context of rising interest rates and inflation, which could impact its net interest margin and overall financial performance.