BIRMINGHAM, Ala. - First US Bancshares, Inc. (NASDAQ:FUSB), a bank holding company based in Birmingham, Alabama, has announced the expansion of its ongoing share repurchase program. The company's Board of Directors has authorized the repurchase of an additional 600,000 shares, extending the program's expiration from December 31, 2024, to December 31, 2025.
To date, First US Bancshares has repurchased 1,289,972 shares of its common stock. With the recent authorization, the total number of shares available for repurchase now stands at 952,813. These repurchases can be made through open market transactions, privately negotiated deals, or other methods as management sees fit, within regulatory requirements and market conditions.
The repurchase program, initially approved on January 19, 2006, allows the company to buy back shares at its discretion and may be suspended at any time. The execution of open market purchases may occur under a pre-arranged repurchase plan that complies with the Securities Exchange Act of 1934, specifically under Rule 10b5-1 and Rule 10b-18.
First US Bancshares operates banking offices in Alabama, Tennessee, and Virginia through First US Bank. The company is publicly traded on the Nasdaq Capital Market with the stock symbol "FUSB."
The press release also contains forward-looking statements, which involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially. The company has identified risk factors that may impact its business in its public filings with the U.S. Securities and Exchange Commission.
The information for this article is based on a press release statement from First US Bancshares, Inc.
In other recent news, First US Bancshares, a bank holding company, has reported significant financial developments. The company announced a 40% increase in its cash dividend, raising it to $0.07 per share from the previous $0.05. This increase marks the forty-second consecutive quarter that the company has paid dividends to its shareholders. The new dividend is expected to be paid to eligible shareholders early next year.
In addition to this financial milestone, the company also declared a quarterly cash dividend of $0.05 per share earlier this year. This marked the forty-first consecutive quarter of shareholder dividends, further demonstrating the company's commitment to its shareholders.
First US Bancshares has also seen changes in its leadership. The company welcomed Robert C. Field to its Board of Directors and its subsidiary, First US Bank's board. Field, who brings over 35 years of experience in diverse sectors, will also join the Audit Committee and the Asset/Liability Committee. These recent developments highlight First US Bancshares' ongoing commitment to strategic growth and its shareholders.
InvestingPro Insights
First US Bancshares' decision to expand its share repurchase program aligns with several key financial indicators and trends highlighted by InvestingPro data. The company's market capitalization stands at $70.13 million, reflecting its position as a smaller regional bank. Despite its size, FUSB has demonstrated strong performance, with a notable 37.49% price total return over the past year.
The bank's P/E ratio of 8.29 suggests that it may be undervalued compared to its peers, which could explain the board's decision to authorize additional share repurchases. This move may be seen as a vote of confidence in the company's intrinsic value and future prospects.
InvestingPro Tips reveal that FUSB has maintained dividend payments for 11 consecutive years, indicating a commitment to shareholder returns that complements the expanded repurchase program. Additionally, the stock is trading near its 52-week high, with a strong return over the last three months, suggesting positive market sentiment.
However, investors should note that FUSB is trading at a high P/E ratio relative to its near-term earnings growth, which could indicate limited upside potential in the short term. The company also suffers from weak gross profit margins, which may impact its ability to generate substantial profits from its revenue.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into FUSB's financial health and market position.
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