First US Bancshares (FUSB) AI Stock Analysis

• Market Cap: $85.32M
• Dividend Yield: 2.08%
• Average Volume (3M): 3.31K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.19
• Revenue Growth: 1.03%
• EPS Growth: -35.72%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.36
• Shares Outstanding: 5,650,157
• 10 Day Avg. Volume: 1,622
• 30 Day Avg. Volume: 3,313
• PEG Ratio: -0.51
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 8.95
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 9.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $16.00 ▲(14.61% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is primarily supported by a well-capitalized, de-risked balance sheet and solid multi-year revenue expansion, but tempered by recent profitability/ROE compression and less consistent cash-flow quality. Technical signals are neutral and valuation appears reasonable, while the corporate update is mildly supportive but not a fundamental catalyst by itself.

Positive Factors

Strong capitalization / declining leverage

A materially lower debt-to-equity ratio and steady equity growth meaningfully reduce financial and regulatory risk. This stronger capital base supports lending capacity, loss absorption, and selective expansion without immediate funding stress, underpinning durable franchise resilience.

Multi-year revenue expansion

Sustained top-line growth over several years reflects expanding customer penetration and loan/fee activity, creating scale benefits. Even with recent slowing, multi-year expansion improves operating leverage potential and provides a broader base to rebuild margins and fund strategic initiatives.

Management incentives & strategic discipline

Linking executive pay to core banking metrics and including discretionary, clawback and regulatory provisions aligns management with long-term profitability, risk control and shareholder outcomes, increasing accountability for disciplined growth and prudent capital deployment.

Negative Factors

Profitability & margin compression

Significant margin and profitability deterioration reduces return on capital and limits retained earnings growth. Lower margins weaken the bank's ability to generate internal capital, compress ROE, and constrain long-term ability to fund growth or maintain dividends without restoring operating performance.

Choppy cash generation / weak cash conversion

Inconsistent cash conversion undermines confidence in sustainable free cash flow available for reinvestment, dividends, or balance-sheet strengthening. Volatile cash generation increases reliance on external funding or curtailed capital allocation during stress, limiting strategic optionality.

Slowing top-line momentum

A recent stall in revenue growth reduces operating-leverage prospects and raises execution risk for digitization and branch expansion plans. Persistent top-line stagnation forces tougher choices—cost cuts, riskier lending, or acquisitions—to restore scale and earnings trajectory.

First US Bancshares Business Overview & Revenue Model

Company Description

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans comprising residential housing, commercial and industrial use property development loans, raw land purchase and improvement loans, and agricultural production loans; mortgage loans on residential properties and apartment buildings; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, or other commercial property; loans and leases to commercial customers; and secured and unsecured personal loans, including automobile loans and other direct consumer installment loans. The company also provides loans secured by personal property items, such as furniture, ATVs, and home appliances, as well as recreational vehicles, boats, and cargo trailers. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services, as well as underwrites credit life, and credit accident and health insurance reinsurance policies. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. It operates 15 full-service banking offices in Birmingham, Butler, Calera, Centreville, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa, and Woodstock, Alabama; Knoxville and Powell, Tennessee; and Rose Hill, Virginia, as well as loan production offices in Mobile, Alabama, and the Chattanooga, Tennessee area. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

How the Company Makes Money

First US Bancshares generates revenue primarily through interest income earned on loans and securities, which constitutes a significant portion of its earnings. This includes interest from commercial loans, consumer loans, and real estate mortgages. Additionally, the bank earns non-interest income through fees associated with deposit accounts, transaction services, and other banking services. FUSB may also benefit from partnerships with other financial institutions or service providers that enhance its product offerings and customer reach. The company's performance can be influenced by factors such as interest rate changes, loan demand, and economic conditions affecting its customer base.

First US Bancshares Financial Statement Overview

Summary

Multi-year revenue growth is solid, and the balance sheet is a key strength with materially lower leverage and steady equity growth. Offsetting this, profitability has weakened (net/operating margin and ROE compressing into 2024–2025) and cash flow has been choppy with weaker confidence in cash-to-earnings conversion per the dataset.

Income Statement

Revenue has expanded meaningfully over the past several years (from ~$45.1M in 2020 to ~$63.0M in 2025), including a strong step-up in 2022–2023, but growth slowed sharply in 2024 and was roughly flat in 2025. Profitability has also softened: net margin fell from ~15.1% (2023) to ~13.2% (2024) and ~9.5% (2025), with operating margin similarly compressing, pointing to weaker earnings power versus the prior cycle. Overall, the company shows solid scale gains but a deteriorating profitability trend recently.

Balance Sheet

Leverage appears conservative and improving, with debt-to-equity declining from ~0.36 (2022 peak) to ~0.21 (2024) and ~0.10 (2025), alongside steady equity growth (to ~$105.6M in 2025). Returns on equity have moderated (from ~9.4% in 2023 to ~5.7% in 2025), which tempers the strong balance-sheet picture. Overall, the balance sheet looks relatively well-capitalized with reduced debt burden, but profitability on that equity base has weakened.

Cash Flow

Cash generation has been positive, with operating cash flow rising to ~$12.3M in 2025 and free cash flow also ~$12.3M, following a weaker 2024 free cash flow level (~$5.7M). However, cash flow has been choppy year-to-year (including a decline in 2020 and 2024), and the provided cash-flow-to-earnings linkage metrics are inconsistent/low in the latest year (shown as 0.0 in 2025), which reduces confidence in cash conversion quality based on the dataset. Net, cash flow is supportive but less consistent than the balance sheet.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	62.99M	61.84M	56.17M	44.35M	43.42M
Gross Profit	37.01M	39.11M	40.40M	36.78M	38.46M
EBITDA	7.94M	12.47M	13.05M	10.89M	7.76M
Net Income	5.99M	8.17M	8.48M	6.86M	4.45M
Balance Sheet
Total Assets	1.15B	1.10B	1.07B	994.67M	958.30M
Cash, Cash Equivalents and Short-Term Investments	177.48M	71.10M	185.84M	160.95M	192.13M
Total Debt	10.95M	20.87M	20.80M	30.70M	20.70M
Total Liabilities	1.05B	1.00B	982.35M	909.53M	868.24M
Stockholders Equity	105.65M	98.62M	90.59M	85.14M	90.06M
Cash Flow
Free Cash Flow	9.08M	5.66M	11.60M	11.27M	9.00M
Operating Cash Flow	12.32M	7.76M	13.07M	12.53M	9.82M
Investing Cash Flow	-28.12M	-30.35M	-60.45M	-80.20M	-108.31M
Financing Cash Flow	42.13M	19.52M	67.51M	36.58M	65.32M

First US Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUSB, the sentiment is Neutral. The current price of 13.96 is below the 20-day moving average (MA) of 14.98, below the 50-day MA of 14.74, and above the 200-day MA of 13.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 27.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FUSB.

First US Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	73 Outperform	$95.46M	9.36	12.15%	2.18%	6.17%	-6.13%
UBCP	69 Neutral	$87.25M	10.17	12.01%	6.51%	6.31%	-5.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUSB	65 Neutral	$85.32M	13.56	5.80%	2.08%	1.03%	-35.72%
BYFC	54 Neutral	$71.52M	-0.65	-8.79%	―	2.54%	-174.74%
FNWB	46 Neutral	$83.73M	-21.37	-2.76%	2.88%	8.02%	21.36%
SSBI	45 Neutral	$86.80M	11.51	6.89%	―	-0.81%	-129.22%

First US Bancshares Corporate Events

First US Bancshares Adopts 2026 Executive Incentive Program

On February 9, 2026, First US Bancshares’ Compensation Committee approved a 2026 cash incentive program for certain executives and key employees, tying annual cash bonuses to financial and operational performance for the year ending December 31, 2026. The plan covers President and CEO James F. House, CFO Thomas S. Elley and Senior EVP William C. Mitchell, linking target bonuses of 35%–45% of base salary to consolidated pre-tax income, ROAA, ROATE, and, for Mitchell, net loan growth in indirect lending.

The program includes a 20% discretionary component based on strategic contributions and shareholder-focused metrics, with payout levels ranging from 50% to 150% of target depending on performance versus budget. Bonuses can be reduced for regulatory deterioration and are subject to clawback if financial results are restated, performance inputs are found materially inaccurate, or executives engage in bad-faith conduct that harms the business.

The most recent analyst rating on (FUSB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on First US Bancshares stock, see the FUSB Stock Forecast page.

First US Bancshares Outlines Strategic Growth and Risk Focus

First US Bancshares released an investor presentation as of December 31, 2025 outlining its financial profile, leadership team and strategic priorities, highlighting modest scale with a price-to-tangible book value of 81% and a 2% dividend yield. Management detailed a strategy centered on growing earnings and returns through diversified loan and deposit growth, strict adherence to commercial lending fundamentals, a focus on higher-credit-score consumer lending, and disciplined expense control, while leveraging digital banking, expanding loan production offices, and selectively considering acquisitions to enter new growth markets, positioning the company for longer-term franchise value enhancement and balanced risk management.

The most recent analyst rating on (FUSB) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on First US Bancshares stock, see the FUSB Stock Forecast page.