First Us Bancshares Inc's

In 2025, the Company faced elevated competitive pressures in both loan and deposit pricing. Competition for deposits in the Company's local markets limited its ability to reduce funding costs despite declining market interest rates. Commercial lending activity remained cautious due to trade policies and interest rate uncertainty. The Company experienced growth in consumer indirect lending within higher credit quality segments, despite a slowdown in consumer spending. The competitive environment, along with economic and policy uncertainty, posed challenges to maintaining and improving the Company's net interest margin. Management is monitoring these conditions and believes the Company is well positioned to respond to various economic outcomes, although adverse changes could negatively affect its financial condition and results.