FIRST US BANCSHARES, INC. Income Taxes Disclosure
The consolidated provisions for income taxes for the years ended December 31, 2025 and 2024 were as follows:
|
|
2025 |
|
|
2024 |
|
||
|
|
(Dollars in Thousands) |
|
|||||
Current taxes |
|
|
|
|
|
|
||
Federal |
|
$ |
1,508 |
|
|
$ |
1,458 |
|
State |
|
|
386 |
|
|
|
543 |
|
Total current taxes |
|
|
1,894 |
|
|
|
2,001 |
|
Deferred taxes |
|
|
|
|
|
|
||
Federal |
|
|
33 |
|
|
|
538 |
|
State |
|
|
17 |
|
|
|
45 |
|
Total deferred |
|
|
50 |
|
|
|
583 |
|
Total tax provision |
|
$ |
1,944 |
|
|
$ |
2,584 |
|
The Company has elected to prospectively adopt the guidance in ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures. The following table reconciles the U.S. federal statutory income tax rate of 21% to the Company’s effective income tax rate for the year ended December 31, 2025.
|
|
2025 |
|
|||||
|
|
Amount |
|
|
Percent |
|
||
|
|
(Dollars in Thousands) |
|
|||||
Income before provision for income taxes |
|
$ |
7,936 |
|
|
|
|
|
|
|
|
|
|
|
|
||
US federal statutory tax rate |
|
|
1,667 |
|
|
|
21.0 |
% |
State and local income taxes, net of federal income tax effect (1) |
|
|
317 |
|
|
|
4.0 |
% |
Nontaxable or nondeductible items |
|
|
(65 |
) |
|
|
-0.8 |
% |
Other reconciling items (2) |
|
|
25 |
|
|
|
0.3 |
% |
Total |
|
$ |
1,944 |
|
|
|
24.5 |
% |
(1) State taxes in Alabama made up the majority of the tax effect of this category. The Company has no foreign operations and does not file income tax returns in foreign jurisdictions.
(2) No individual component of this category was material to the rate reconciliation.
The following table details how the consolidated tax expense differed from the amount computed by applying the Company's federal statutory income tax rate of 21% in 2024, prior to the adoption of ASU 2023-09:
|
2024 |
|
|
|
|
|
|
Income tax expense at federal statutory rate |
$ |
2,258 |
|
Increase (decrease) resulting from: |
|
|
|
Tax-exempt interest |
|
(52 |
) |
Bank-owned life insurance |
|
(74 |
) |
State income tax expense, net of federal income tax effect |
|
414 |
|
Apportionment and state rate changes |
|
119 |
|
Other |
|
(81 |
) |
Total |
$ |
2,584 |
|
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2025 and 2024 are presented below:
|
|
2025 |
|
|
2024 |
|
||
|
|
(Dollars in Thousands) |
|
|||||
Deferred tax assets: |
|
|
|
|
|
|
||
Allowance for credit losses |
|
$ |
2,809 |
|
|
$ |
2,657 |
|
Deferred compensation |
|
|
562 |
|
|
|
749 |
|
Deferred commissions and fees |
|
|
289 |
|
|
|
368 |
|
Unrealized loss on securities available-for-sale |
|
|
240 |
|
|
|
1,676 |
|
Other |
|
|
538 |
|
|
|
554 |
|
Total gross deferred tax assets |
|
|
4,438 |
|
|
|
6,004 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
||
Premises and equipment |
|
|
1,293 |
|
|
|
1,329 |
|
Core deposit intangible |
|
|
— |
|
|
|
12 |
|
Limited partnerships |
|
|
114 |
|
|
|
112 |
|
Unrealized gain on cash flow hedges |
|
|
— |
|
|
|
227 |
|
Other |
|
|
206 |
|
|
|
260 |
|
Total gross deferred tax liabilities |
|
|
1,613 |
|
|
|
1,940 |
|
Net deferred tax asset, included in other assets |
|
$ |
2,825 |
|
|
$ |
4,064 |
|
Income taxes paid, net of refunds, are presented in the supplemental disclosures of cash flow information in Note 2.
The Company had no deferred tax valuation allowance as of December 31, 2025 or 2024. The Company did not have any federal or state net operating loss carryforwards as of December 31, 2025 or December 31, 2024. The Company files income tax returns with the federal government and several states. The majority of its income is attributable to the states of Alabama and Tennessee. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and the states in which it filed for the years ended December 31, .
As of December 31, 2025, the Company had no unrecognized tax benefits related to federal or state income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to December 31, 2025. As of December 31, 2025, the Company had accrued no interest and no penalties related to uncertain tax positions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 18, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Mar 11, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.