First US Bancshares, Inc. (FUSB) is based in Birmingham, Alabama; the company has 20 bank branches in Alabama, Tennessee, and Virginia, notes contrarian value investor Benj Gallander, editor of Contra the Heard— and a speaker at the MoneyShow Canada Virtual Event on July 8-9.

We continue to wait for this stock to fulfill its promise. While waiting, the company gives us a dividend that was increased by 50%, to $0.03 a quarter. That is far lower than the $0.27 it paid prior to the recession, but indications are the payout could increase further.

MoneyShow Canada Virtual Event on July 8-9

Revenues continue to ramp up, catalyzed by the takeover of The Peoples Bank, which helped to increase income by 180%. The capitalization ratios remain primo. Investors who buy will be purchasing a company at about half book.

The share count has remained flat at about six million shares, meaning that a further payout increase should not ding the bottom line very much. Insiders own about 6% and have recently increased their stake.

First US used to trade north of $33. It would not surprise to see this one move back to the $25 level, better than a triple from here. It could be a good tuck-in takeover at a significant premium for a player that wants to expand.

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