FUSB First US Bancshares, Inc.

Risks

• We may be required to increase our allowance for loan losses as a result of a recent change to an accounting standard.
• The banking industry is highly competitive, which could result in loss of market share and adversely affect our business.
• We are subject to extensive governmental regulation, and the costs of complying with such regulation could have an adverse impact on our operations.
• We are subject to laws regarding the privacy, information security and protection of personal information, and any violation of these laws or unauthorized disclosure of such information could damage our reputation and otherwise adversely affect our operations and financial condition.
• Our FDIC deposit insurance premiums and assessments may increase and thereby adversely affect our financial results.
• We may not be able to maintain consistent growth, earnings or profitability.
• Rapid and significant changes in market interest rates may adversely affect our performance.
• The performance of our investment portfolio is subject to fluctuations due to changes in interest rates and market conditions.
• Changes in the policies of monetary authorities and other government action could adversely affect our profitability.
• Uncertainty relating to the LIBOR calculation process and potential phasing out of LIBOR may adversely affect our results of operations.
• We cannot guarantee that we will pay dividends in the future.
• Bancshares’ liquidity is subject to various regulatory restrictions applicable to its subsidiaries.
• Technological changes in the banking and financial services industries may negatively impact our results of operations and our ability to compete.
• Our information systems may experience a failure or interruption.
• We depend on outside third parties for the processing and handling of our records and data, which exposes us to additional risk for cybersecurity breaches and regulatory action.
• Securities issued by us, including our common stock, are not insured.
• Future issuances of additional securities by us could result in dilution of your ownership.
• We intend to engage in acquisitions of other banking institutions from time to time. These acquisitions may not produce revenue or earnings enhancements or cost savings at levels, or within time frames, originally anticipated and may result in unforeseen integration difficulties.
• Our common stock price could be volatile, which could result in losses for individual shareholders.
• Our performance and results of operations depend in part on the soundness of other financial institutions.
• Liquidity risks could affect our operations and jeopardize our financial condition.