Form 4: First US Bancshares Director McPhearson Reports Acquisition of Phantom Stock Units

Director John Lee McPhearson reports acquisition of phantom stock units due to accrued dividends under the First US Bancshares, Inc. Non-Employee Directors Deferred Compensation Plan.

Summary

• On March 28, 2024, John Lee McPhearson, a director of First US Bancshares, Inc. (FUSB), acquired phantom stock units.
• The acquisition is related to quarterly dividends accrued under the First US Bancshares, Inc. Non-Employee Directors Deferred Compensation Plan.
• McPhearson acquired 64.19 phantom stock units at a price of $9.26 per unit.
• Following the transaction, McPhearson beneficially owns 12,009.43 phantom stock units.
• These units convert to common stock on a 1-for-1 basis and will be settled in common stock at the end of the deferral period.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and ongoing compensation plan. The sentiment is neutral to slightly positive as it shows continued alignment of director interests with the company's performance.

Positives

• The acquisition of phantom stock units reflects continued participation in the company's Non-Employee Directors Deferred Compensation Plan.
• The director's increased holdings align their interests with those of the shareholders.

Future Outlook

The phantom stock units will be settled in common stock at the end of the deferral period, but the exact timing is not specified in this document.

Industry Context

This filing is a routine disclosure related to director compensation and is common in the banking industry. Many financial institutions use deferred compensation plans to align director interests with long-term shareholder value.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice in the financial services industry.
• Companies like JPMorgan Chase and Bank of America also utilize similar compensation structures to incentivize their board members.
• The specific terms of these plans, such as the deferral period and conversion ratio, can vary based on the company's compensation philosophy and regulatory requirements.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the long-term performance of the company.

Key Dates