First US Bancshares, Inc. reported net income of $0.2 million, or $0.03 per diluted share, for the second quarter ended June 30, 2025. This represents a significant decrease from $1.8 million, or $0.29 per diluted share, in the first quarter of 2025, and $2.1 million, or $0.34 per diluted share, in the second quarter of 2024. For the six months ended June 30, 2025, net income totaled $1.9 million, or $0.32 per diluted share, down from $4.2 million, or $0.68 per diluted share, for the same period in 2024.
The primary driver for the decline in net income was a substantial increase in the provision for credit losses, which totaled $2.7 million in the second quarter of 2025, bringing the year-to-date provision to $3.2 million. This compares to no provision recorded in the second quarter or first six months of 2024. Of the year-to-date provision, $2.3 million was associated with the indirect consumer portfolio, and $0.9 million was for specific reserves on two individually evaluated commercial loans.
Net charge-offs as a percentage of average loans rose sharply to 0.79% during the second quarter of 2025, compared to 0.13% in the first quarter of 2025. This increase was attributed to a $1.2 million partial charge-off of one commercial loan and increased charge-offs in the indirect portfolio, which totaled $0.6 million in the second quarter. Despite these credit quality challenges, total loans increased by $23.1 million in the second quarter, driven by $25.1 million growth in consumer indirect loans, contributing to a year-to-date loan growth of 5.9%.
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