First US Bancshares, Inc. (FUSB): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine room of a focused regional player, so let's cut straight to the First US Bancshares, Inc. (FUSB) Business Model Canvas. As an analyst who's seen the cycles, what stands out here is their commitment to quality over sheer volume: they are running a disciplined community bank model, evidenced by new consumer loan originations boasting an 800 weighted average credit score and maintaining rock-solid capital with a 9.50% Tier 1 leverage ratio at the end of 2024. With Q3 2025 revenue hitting $10.52 million and non-performing assets (NPA) staying low at 0.44% as of Q1 2025, their strategy of managing funding costs against a $962.0 million core deposit base is clearly working. Dive below to see exactly how their key activities and resources translate into that consistent $0.07 quarterly dividend and what that means for their near-term outlook.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Key Partnerships

You're looking at the external relationships First US Bancshares, Inc. relies on to execute its business plan, especially as it navigates the 2025 rate environment. These aren't just vendors; they are critical access points for funding and origination volume.

Federal Home Loan Bank (FHLB) for wholesale funding access and the Federal Reserve Bank (FRB) for discount window liquidity remain stated sources of funding capacity. While specific drawdowns on these facilities aren't broken out in the latest reports, the reliance on wholesale funding is evident in the balance sheet management.

For instance, short-term borrowings, which can include FHLB advances or other wholesale sources, stood at $35 million as of the second quarter of 2025, up from $45.0 million at the end of the first quarter of 2025. This shows active management of external liquidity sources to support operations while repricing deposits.

The indirect lending dealers/brokers are a major engine for consumer loan origination. This platform focuses on recreational and equipment consumer lending.

• Indirect loan portfolio balance as of June 30, 2025: $376,079 (in thousands, or $376.08 million).
• Weighted average credit score on new indirect loans (six months ended June 30, 2025): 798.
• Weighted average credit score for the entire indirect portfolio (as of June 30, 2025): 781.
• Indirect loan growth in 2Q2025: $25.1 million.
• Indirect loan growth in 1Q2025: $41.3 million.

Correspondent banks are part of the operational framework, with the Bank conducting services through arrangements with them and the FRB. JPMORGAN CHASE & CO. is listed among other banks, suggesting potential interbank relationships.

The reliance on third-party vendors for core banking technology and compliance is an inherent operational dependency for First US Bancshares, Inc., as noted by the risk factors related to potential failures or interruptions in information systems and those of third-party service providers.

Here's a quick look at the quantitative aspects tied to these key relationships as of mid-2025:

The growth in the indirect portfolio, up $25.1 million in the second quarter of 2025, directly reflects the success of the dealer/broker channel, even as credit costs rose, necessitating a total provision for credit losses of $2.7 million in that same quarter.

Finance: draft 13-week cash view by Friday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Key Activities

You're looking at the core engine of First US Bancshares, Inc. (FUSB), the day-to-day actions that drive the business forward. Honestly, for a regional bank, it boils down to disciplined credit extension, smart funding, and keeping the balance sheet clean. Here's how the key activities stack up based on the latest figures we have through Q3 2025.

Generating interest income through commercial and consumer lending is the primary engine. This involves actively managing the loan book to maximize the spread between what the bank earns on assets and what it pays for liabilities. We saw the Net Interest Margin (NIM) hold steady at 3.60% in Q3 2025, which is flat year-over-year, showing resilience in a competitive rate environment. Net Interest Income (NII) for that quarter hit $9.7 million. The lending focus is still broad, with Q1 2025 seeing loan growth of 3.1%, and Q3 2025 showing continued average loan increases driven by consumer indirect lending, even as total loans saw a slight dip.

The second crucial activity is the disciplined management of funding costs and deposit repricing. This is about keeping the cost of money low. In Q3 2025, First US Bancshares managed its average deposit costs at 2.14% while still growing the deposit base by 1.6% quarter-over-quarter, adding $15.6 million in deposits. That growth, particularly in demand deposit accounts, shows they are attracting sticky, lower-cost funding, which helps protect that NIM.

Next up is maintaining a strong capital base and asset quality. This is where you see the bank's risk management in action. You specifically noted the Nonperforming Assets (NPA) as a percentage of total assets was 0.44% in Q1 2025, which was an improvement from 0.60% at the end of 2024. By Q3 2025, that metric improved further to just 0.19% of total assets, reflecting the resolution of those two specific commercial loan issues mentioned by the CEO. The Tier 1 leverage ratio stood at 9.19% as of Q3 2025, and Shareholders' equity was reported at $104.2 million, showing a solid foundation.

Here's a quick look at some of those core performance and health metrics:

The bank is also focused on expanding the branch network. While the specific Q4 2025 opening for the Daphne/Mobile center wasn't confirmed in the latest releases, the company is clearly focused on physical presence, with reports noting ongoing plans to open new facilities in Alabama. This signals a commitment to market penetration alongside digital efforts.

Finally, First US Bancshares must actively engage in managing a liquid investment securities portfolio. This activity ensures the bank has readily available assets to meet unexpected liquidity needs or to redeploy capital when loan demand or interest rate environments shift. The disciplined approach to investing, mentioned by the CEO in Q1 2025, directly relates to this portfolio management, balancing yield generation with safety.

You should track the following operational focus areas:

• Loan growth, especially in consumer indirect lending.
• The ongoing trend of deposit cost management below 2.25%.
• The successful integration of any new Alabama facilities.
• Net charge-offs, which were 0.61% annualized in Q3 2025, still elevated versus prior year.

Finance: draft 13-week cash view by Friday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets that power First US Bancshares, Inc. as of late 2025. These are the foundational elements the company relies on to execute its community banking model across Alabama, Tennessee, and Virginia.

The financial foundation is anchored by its deposit base and capital strength. As of the first quarter of 2025, the core deposit base stood at approximately $962.0 million. This funding source is crucial for maintaining liquidity and funding loan growth. By the third quarter of 2025, total deposits had risen by $15.6 million, driven by demand deposit accounts, showing continued gathering momentum. The loan portfolio, which is a primary earning asset, was reported at $848.3 million as of Q1 2025.

Capital adequacy is a key resource for any bank, demonstrating its ability to absorb unexpected losses. The Tier 1 leverage ratio as of December 31, 2024, was 9.50%. More recently, as of March 31, 2025, this ratio was reported at 9.55%, showing a stable, well-capitalized position exceeding regulatory minimums.

The physical footprint and human capital are equally important resources for a community bank like First US Bancshares, Inc.

• Physical banking centers across Alabama, Tennessee, and Virginia.
• The company noted plans for a new banking center in Daphne/Mobile, Tennessee, expected by Q4 2025, which is a lever for future deposit gathering.
• Experienced management team, including President and CEO James F. House.
• Recent additions to the team, like Warren Giardina as Birmingham Market Executive in August 2025, bolster local market knowledge.

Here's a quick look at the key financial resource metrics we have for the first half of 2025:

The company also maintains access to contingent funding sources, which are vital intangible resources in times of market stress. These include federal funds lines with other banking institutions, Federal Home Loan Bank (FHLB) advances, the discount window of the Federal Reserve Bank (FRB), and brokered deposits. As of Q1 2025, readily available liquidity stood at $367.8 million, supported by a liquid investment securities portfolio. Finance: draft the Q4 2025 liquidity projection by next Tuesday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Value Propositions

You're looking at the core value First US Bancshares, Inc. (FUSB) delivers to its customers and shareholders as of late 2025. It's all about quality, focus, and consistency in their regional markets.

For the consumer side, a key value is the focus on high-quality indirect consumer loans. This focus is evidenced by the weighted average credit score on new originations hitting 800 in the first quarter of 2025, showing a commitment to prime borrowers in that segment. The portfolio itself maintained a weighted average score of 779 as of the six months ended June 30, 2025. This strategy aims to keep credit quality high, even as net charge-offs for indirect consumer loans decreased to more normalized levels in the third quarter of 2025 after a period of elevation.

First US Bancshares, Inc. provides comprehensive commercial banking services aimed at small and medium-sized businesses. This service offering is supported by a loan portfolio that includes Commercial and Industrial (C&I) loans. For instance, C&I loan balances were reported at $46,249 thousand as of the end of the second quarter of 2025.

The delivery mechanism for these services is a localized, relationship-focused banking model. First US Bank operates banking offices across three specific states: Alabama, Tennessee, and Virginia.

The bank supports its relationship focus with a full suite of deposit products, ensuring liquidity options for its client base. These products include demand, savings, time deposits, and Individual Retirement Accounts (IRAs). As of the third quarter of 2025, total deposits reached $1.002 billion, with non-interest-bearing deposits making up $155.9 million of that total.

For the ownership group, the value proposition centers on consistent shareholder return. First US Bancshares, Inc. declared a cash dividend of $0.07 per share for the forty-sixth consecutive quarter in November 2025, payable in January 2026. This consistent return is a core part of their capital allocation strategy.

Here's a quick look at some key balance sheet metrics that underpin these value propositions as of late 2025:

The bank's operational performance in the third quarter of 2025 reflected this focus, with Pre-Tax Pre-Provision Net Revenue (PPNR) increasing by 7.1% quarter-over-quarter.

You can see the components of the deposit base that fund these operations:

• Non-interest-bearing deposits: $155.9 million
• Interest-bearing deposits: $846.5 million
• Total Deposits: $1.002 billion

Finance: draft 13-week cash view by Friday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Customer Relationships

Personal, high-touch service through local banking centers remains a cornerstone of First US Bancshares, Inc.'s approach. You see this commitment in their physical footprint, which spans three states: Alabama, Tennessee, and Virginia, served through its subsidiary, First US Bank. As of early 2024, the Bank operated 15 full-service banking offices, with plans underway during 2025 to open an initial deposit gathering facility in the Daphne/Mobile area of Alabama. This physical presence supports the relationship-driven model.

Relationship management is key for commercial and professional clients. First US Bancshares provides tailored financial solutions to small- and medium-sized businesses, property managers, business executives, and professionals. These services include commercial loans, lines of credit, and treasury management services. The Bank also conducts indirect lending through third-party retailers across 17 states, including Alabama, Tennessee, and Virginia. The firm has 151 total employees supporting these operations as of late 2025.

For automated and self-service options, First US Bancshares, Inc. integrates digital channels, though specific internal adoption metrics aren't public. Nationally, however, the trend is clear: by 2025, it is estimated that digital banking channels will account for over 90% of banking interactions globally. In the US, approximately 75% of consumers prefer digital banking services for their ease of use and accessibility. This context frames the necessity of robust digital offerings alongside the local service model.

The commitment to integrity and responsiveness is a core value that underpins these relationships. This focus on stability and shareholder reward is concretely demonstrated through the company's dividend history. First US Bancshares, Inc. announced a cash dividend of \$0.07 per share in November 2025, marking the 46th consecutive quarterly dividend payment. That payment is scheduled to be payable on January 2, 2026, to shareholders of record as of December 12, 2025. This represents an annualized dividend of \$0.28 per share.

This long-term focus is also reflected in the company's financial standing, which supports sustained customer relationships and stability. Here's a quick look at some key figures relevant to the operational scale:

The capital strength supporting these customer interactions remains solid, based on the latest reported figures from the end of the prior year. As of December 31, 2024, the company's Tier 1 leverage ratio stood at 9.50%, and its total capital ratio was 12.47%. The disciplined approach to lending and funds management, which management cited as helping improve the net interest margin by 12 basis points quarter-over-quarter in Q1 2025, is designed to ensure the capital base remains strong to support client needs.

The types of accounts supporting the deposit base, which is fundamental to customer relationships, include:

• Non-interest-bearing demand deposits
• Savings accounts
• NOW accounts
• Individual retirement accounts
• Time deposits

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Channels

You're looking at how First US Bancshares, Inc. gets its value proposition-community banking and specialized lending-out to its customers. The Channels block for First US Bancshares, Inc. is a blend of traditional, localized physical presence and a significant, geographically broad indirect lending mechanism.

Network of physical bank branches in AL, TN, and VA

First US Bancshares, Inc., through First US Bank, maintains a physical footprint designed to serve its core community banking base. As of the latest reported data, the Bank operates 15 full-service banking offices. These locations are strategically placed to cover specific geographic areas within its primary states of operation. The physical network serves communities across six counties in Southwest and Central Alabama, Knox County, Tennessee, and Lee County, Virginia. Specific locations include offices in Alabama such as Birmingham, Tuscaloosa, and Thomasville; in Tennessee, Knoxville and Powell; and in Virginia, Rose Hill. Furthermore, the Bank supplements its branch network with loan production offices, including one in the Chattanooga, Tennessee area, and another in Mobile, Alabama. The company also noted plans to open a new banking center in Daphne, Alabama, in 2025, which would serve as its initial deposit gathering facility in the Daphne/Mobile area. This physical presence is key for relationship banking and local deposit gathering. It's a focused, not a sprawling, network.

Digital banking platforms for online and mobile access

First US Bancshares, Inc. supports its customer base with digital channels, recognizing the industry shift. While specific First US Bancshares, Inc. mobile adoption rates for late 2025 aren't public, the broader U.S. banking environment shows that 42% of consumers prefer using a mobile app to manage finances, and 36% prefer online banking via a website. First US Bancshares, Inc. provides these platforms to help customers manage their accounts, though the core community focus suggests a strong reliance on the physical touchpoints for complex needs. The digital channel is defintely necessary for modern convenience.

Remote deposit capture services for business clients

To help business clients streamline operations, First US Bancshares, Inc. offers remote deposit capture services. This capability allows commercial and industrial clients, property managers, and business executives to deposit checks electronically without needing to visit a physical branch. This service directly supports the Bank's value proposition to small- and medium-sized businesses by improving their operational efficiency.

ATMs and debit/credit card networks

Access to cash and transactional capabilities is managed through a network of ATMs and participation in major debit/credit card networks. This is standard for any retail bank, ensuring customers have access to funds and payment options outside of branch hours. The Bank provides ATM access throughout its operating states of AL, TN, and VA.

Indirect lending channels for consumer loan originations

The indirect lending platform is a major growth driver and a channel that extends the Bank's reach far beyond its physical branch footprint. This channel focuses on recreational and equipment consumer lending, often through third-party retailers. First US Bancshares, Inc. conducts this lending across 17 states. This channel demonstrated significant recent activity:

• Consumer indirect loans grew by $25.1 million during the second quarter of 2025.
• Consumer indirect lending also drove $41.3 million in growth during the first quarter of 2025.
• The credit quality within this channel remains high; the weighted average credit score for new indirect loans financed in the first six months of 2025 was 798, with the overall portfolio score at 781 as of June 30, 2025.

Here's the quick math: the indirect channel is responsible for significant, high-quality loan volume that bypasses the need for a physical branch in 17 states. What this estimate hides is the exact volume of originations versus the total portfolio size, but the dollar growth is clear.

The primary channels and associated recent quantitative data are summarized below:

The Bank also reports that its total loans increased by 2.7% quarter-over-quarter in Q2 2025, with the indirect consumer loan growth being a primary driver. Also, the Bank maintained its quarterly dividend at $0.07 per share as of the November 2025 declaration.

Finance: draft 13-week cash view by Friday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Customer Segments

You're looking at the core groups First US Bancshares, Inc. (FUSB) serves as of late 2025, based on their latest reported figures from the third quarter of 2025. Honestly, the bank's focus clearly leans on a mix of specialized lending and a stable retail deposit base.

The customer base is broad, serving small- and medium-sized businesses, property managers, business executives, professionals, and general individuals across its operating states, which include Alabama, Tennessee, and Virginia, plus the 17 states where it conducts indirect lending. The total assets stood at $1.147 billion as of September 30, 2025, with total loans and leases at $867.5 million.

Small and medium-sized businesses (C&I and multi-family loan growth)

This segment is served through commercial and industrial (C&I) loans and multi-family residential real estate lending. While the overall loan portfolio was $867.5 million in Q3 2025, the first quarter of 2025 showed clear growth emphasis in these areas, indicating continued strategic focus. Management noted specific growth in these areas during Q1 2025, even as other categories saw reductions.

• Multi-family residential real estate lending grew by $5.3 million in Q1 2025.
• Commercial and industrial lending grew by $0.9 million in Q1 2025.

Property managers and real estate investors

This group is primarily targeted through the multi-family residential property loan category. The bank also provides mortgage loans on one-to-four family and multi-family residential properties. The growth in multi-family loans suggests this segment remains a key driver for earning asset expansion.

Business executives and professionals

First US Bancshares, Inc. provides a range of commercial banking services to business executives and professionals. While specific revenue or loan volume tied directly to this segment isn't itemized, their relationship banking services and deposit products cater to this sophisticated clientele.

High-credit-quality indirect consumer borrowers (auto/recreational)

This is a significant lending vertical for First US Bank. As of Q3 2025, indirect consumer balances alone accounted for $385.6 million of the total loans and leases. The focus here is on high credit quality, as evidenced by Q1 2025 figures showing new originations with a weighted average credit score of 800, while the entire portfolio maintained a weighted average score of 779. This segment saw strong growth, adding $41.3 million in Q1 2025. That's a lot of high-quality paper.

General retail customers seeking traditional deposit accounts

Retail customers form the bedrock of the funding side, providing the $1.002 billion in total deposits as of Q3 2025. These customers use non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. The core deposit base was reported at 84.6% of total deposits in Q1 2025.

Here's a quick look at the loan portfolio composition based on the latest available segment detail and growth indicators as of the first half of 2025, with Q3 2025 totals for context:

The bank's total deposits were $1.002 billion in Q3 2025, split between $155.9 million non-interest-bearing and $846.5 million interest-bearing. Finance: draft 13-week cash view by Friday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Cost Structure

You're looking at the core expenses First US Bancshares, Inc. (FUSB) faces to run its business, which is heavily weighted toward funding costs and operational overhead. Honestly, for a bank, the cost structure is dominated by what it pays for money and what it pays its people.

Interest expense on deposits and borrowings was reported at $5.121 million in Q1 2025. This is the direct cost of the funds FUSB uses to generate its interest-earning assets, like loans. Keeping this cost competitive against deposit pricing pressures is a constant balancing act.

Personnel and compensation expenses are the major non-interest cost you'll see. While the exact breakdown isn't always public in the summary filings, the total non-interest expense for Q3 2025 was $7.44 million, which was up from $6.99 million in Q3 2024. The Q3 2025 increase was specifically driven by inflationary impacts, professional fees, and, naturally, salaries and benefits associated with adding key commercial loan officers in the Birmingham market throughout 2025.

Occupancy and equipment costs are tied directly to the physical footprint of First US Bank. These costs are relatively fixed but are a necessary expense to maintain the branch network that supports customer relationships and loan origination. We don't have a specific dollar amount for this line item for late 2025, but it forms a baseline component within the total non-interest expense.

The Provision for Credit Losses on loans and leases is a volatile, yet critical, cost. You saw this clearly in Q2 2025 when the provision spiked substantially to $2.7 million, which crushed net income down to just $0.2 million for that quarter. This was driven by specific reserves on two commercial loans and higher indirect consumer charge-offs. By Q3 2025, this cost normalized significantly, falling back to $0.57 million, reflecting the resolution of those specific commercial credit issues.

Regulatory compliance and technology maintenance costs are embedded within the non-interest expense as well. As a regulated entity, First US Bancshares, Inc. must budget for ongoing compliance with various federal and state rules, plus the continuous investment needed to maintain and upgrade its core banking systems and digital platforms. These expenses are non-negotiable overhead.

Here's a quick look at how the major cost drivers shifted across the middle of 2025:

To manage this structure effectively, First US Bancshares, Inc. focuses on core profitability metrics. For instance, Pre-Tax Pre-Provision Net Revenue (PPNR) rose 7.1% quarter-over-quarter in Q3 2025 to $3.09 million, showing that the underlying business operations are resilient even when credit costs fluctuate. This PPNR figure is what management really watches before setting aside funds for potential loan losses.

You should track these key non-interest expense components as they relate to revenue generation:

• Personnel costs, which are sticky.
• Professional fees, often tied to specific projects or compliance reviews.
• Technology spend for security and customer interface.
• Occupancy costs for the physical footprint.

Finance: draft 13-week cash view by Friday.

First US Bancshares, Inc. (FUSB) - Canvas Business Model: Revenue Streams

You're looking at how First US Bancshares, Inc. actually brings in the money, which for a bank like FUSB, boils down to the spread between what it earns on its assets and what it pays on its liabilities, plus other service charges. It's all about the net interest margin, really.

The core engine is the Net interest income from loans and securities. For the first quarter of 2025, this key metric hit $8.897 million. That number tells you the difference after covering the cost of funds. To be fair, the actual reported NII for Q1 2025 in some filings was slightly different, coming in at $9.040 million, but we'll stick to the figure you laid out for this model.

Drilling down into that interest-earning side, we see the gross interest earned on the balance sheet. For Q1 2025, the total Interest income was $14.018 million, while the Interest expense-what they paid out on deposits and borrowings-was $5.121 million in that same period. That's the raw material for the net interest income we just discussed.

The revenue streams are clearly segmented, even if the bank focuses heavily on the net interest spread. Here's a look at how the top line has been trending across the recent quarters, giving you a sense of scale:

The components that make up the interest income are where the day-to-day business happens. This is where you find the revenue derived from Interest and fees on commercial and consumer loans, which is the largest driver of the interest income figure. You also have revenue generated from the Revenue from investment securities portfolio, which management has been using to deploy liquidity when loan growth slows.

Beyond the core lending activities, First US Bancshares, Inc. generates revenue through other means, categorized as Non-interest income from service charges and fees. This typically includes things like account service fees, transaction fees, and perhaps wealth management charges. While specific fee breakdowns for 2025 aren't explicitly listed against the required total, these non-interest sources are vital for diversification.

When you look at the overall picture for the end of the year, the Total net revenue of First US Bancshares, Inc. in Q3 2025 was $10.52 million. This figure represents the sum of net interest income and non-interest income for that period. It's the number that matters most when assessing the operational top line.

To summarize the key drivers feeding into that top line, think about these areas:

• Net interest income from loans and securities, hitting $8.897 million in Q1 2025.
• Income from interest and fees on the commercial and indirect consumer loan books.
• Revenue from the investment securities portfolio, used to manage balance sheet yield.
• Non-interest income derived from various service charges and account fees.

If onboarding new banking centers, like the planned facilities in Alabama, takes longer than expected, deposit gathering slows, which directly impacts the funding cost side of the net interest income equation. Finance: draft 13-week cash view by Friday.