First US Bancshares (FUSB)

Risks

• If loan losses are greater than anticipated, our earnings may be adversely affected.
• We may be required to increase our allowance for loan losses as a result of a recent change to an accounting standard.
• Risks Related to Our Market and Industry
• The banking industry is highly competitive, which could result in loss of market share and adversely affect our business.
• 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.
• Risks Related to Privacy and Technology
• 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 use information technology in our operations and offer online banking services to our customers, and unauthorized access to our customers’ confidential or proprietary information as a result of a cyber-attack or otherwise could expose us to reputational harm and litigation and adversely affect our ability to attract and retain customers.
• Risks Related to Legal, Reputational and Compliance Matters
• 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.
• Bancshares’ liquidity is subject to various regulatory restrictions applicable to its subsidiaries.
• The internal controls that we have implemented to mitigate risks inherent to the business of banking might fail or be circumvented.
• Changes in tax laws and interpretations and tax challenges may adversely affect our financial results.
• 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.
• We may not be able to maintain consistent growth, earnings or profitability.
• We cannot guarantee that we will pay dividends in the future.
• 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.
• Our common stock price could be volatile, which could result in losses for individual shareholders.
• Liquidity risks could affect our operations and jeopardize our financial condition.
• We depend on the services of our management team and board of directors, and the unexpected loss of key officers or directors may adversely affect our operations.