First US Bancshares, Inc. announced the completion of a private placement of $11.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due October 1, 2031 (the “Notes”). The Notes were sold to certain institutional accredited investors and qualified institutional buyers on October 1, 2021. The Notes are intended to qualify as Tier 2 capital of the Company for regulatory capital purposes. FUSB expects to use the net proceeds for general corporate purposes, which may include the repurchase of the Company’s common stock, and to support organic growth plans, including the maintenance of capital ratios. The Notes mature on October 1, 2031. The Notes will initially bear interest at a rate of 3.50% per annum, payable semi-annually in arrears, to, but excluding October 1, 2026 (or an earlier redemption date). From October 1, 2026 to, but excluding the maturity date (or an earlier redemption date), the interest rate will be reset quarterly to a benchmark interest rate per annum which, subject to certain conditions provided in the Notes, will be equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) plus 275 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, at the Company’s discretion, on or after October 1, 2026 on any interest payment date. Prior to October 1, 2026, the Notes are redeemable by the Company only upon the occurrence of certain events. Any redemption of the Notes is subject to certain conditions.