First US Bancshares Q2 net income drops as provisions for bad loans increase

First US Bancshares

30/07/2025 22:05

Overview

First US Bancshares Q2 net income falls to $0.2 mln from $2.1 mln yr ago

Company's net interest margin improved to 3.59% from 3.53% in Q1 2025

Increase in credit loss provisions impacts earnings, driven by consumer lending growth

Outlook

Company sees growth in indirect consumer lending impacting future provisions

Result Drivers

CREDIT LOSS PROVISION - Increase in provision for credit losses driven by growth in indirect consumer lending and specific commercial loan reserves, per CEO James F. House

LOAN GROWTH - Total loans grew by 2.7% in Q2, primarily due to consumer indirect loans, contributing to a year-to-date growth of 5.9%

NET INTEREST MARGIN - Net interest margin improved by six basis points compared to Q1, aided by increased loan volume and yields

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
$0.03
Q2 Basic EPS
$0.03
Q2 Net Interest Margin
3.6%


Press Release: ID:nPnN39nPa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)