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United Security Bancshares, Inc. Reports 2009 Results

Provision for loan losses was $4.2 million in the fourth quarter of 2009, or 4.1% annualized of average loans, compared with $3.4 million, or 3.4% annualized of average loans, in the fourth quarter of 2008.  Net charge-offs totaled $2.2 million in the fourth quarter of 2009, compared with $2.8 million in the fourth quarter of 2008.

Total non-interest income declined $505,000, or 26.7%, in the fourth quarter of 2009 to $1.4 million, compared with $1.9 million in the fourth quarter of the prior year.  The decline in non-interest income was due to lower service charges, credit life insurance income and other income.

Non-interest expense increased 4.0% to $7.0 million in the fourth quarter of 2009, compared with $6.8 million in the fourth quarter of 2008.  Salary and employee benefits rose only 2.5%, due primarily to increased healthcare costs.  Other expenses rose 4.8% to $2.8 million due to higher FDIC insurance premiums and costs related to OREO.

About United Security Bancshares, Inc.

United Security Bancshares, Inc. is a bank holding company that operates nineteen banking offices in Alabama through First United Security Bank.  In addition, the Company's operations include Acceptance Loan Company, Inc., a consumer loan company, and FUSB Reinsurance, Inc., an underwriter of credit life and credit accident and health insurance policies sold to the bank's and ALC's consumer loan customers.  The Company's stock is traded on the Nasdaq Capital Market under the symbol "USBI."

Forward-Looking Statements

This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. USBI undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, USBI, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of USBI's senior management based upon current information and involve a number of risks and uncertainties. Certain factors that could affect the accuracy of such forward-looking statements are identified in the public filings made by USBI with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of USBI or its senior management should be considered in light of those factors. With respect to the adequacy of the allowance for loan losses for USBI, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy, the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets and collateral values.  There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

    
    
                      UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                        (Dollars in Thousands, Except Per Share Data)
    
                                                  December 31,  December 31,
                                                     2009          2008
                                                  -----------   -----------
                                                  (Unaudited)
                                 ASSETS
    
    Cash and Due from Banks                          $12,323      $13,246
    Interest-Bearing Deposits in Other Banks             126          126
                                                    --------     --------
         Cash and Cash Equivalents                    12,449       13,372
    Federal Funds Sold                                 4,545        1,105
    Investment Securities Available-for-Sale, 
     at fair market value                            194,754      184,213
    Investment Securities Held-to-Maturity,
     at fair market value                              1,250            0
    Federal Home Loan Bank Stock                       5,700        5,236
    Loans, net of allowance for loan losses of
     $10,004 and $8,532, respectively                402,504      399,483
    Premises and Equipment, net                       17,253       17,495
    Cash Surrender Value of Bank-Owned Life
     Insurance                                        12,037       11,724
    Accrued Interest Receivable                        5,095        4,844
    Goodwill                                           4,098        4,098
    Investment in Limited Partnerships                 1,925        1,993
    Other Real Estate Owned                           21,439       18,131
    Other Assets                                       8,705        6,308
                                                    --------     --------
         Total Assets                               $691,754     $668,002
                                                    ========     ========
    
               LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits                                        $513,053     $485,117
    Accrued Interest Expense                           2,477        3,402
    Short-Term Borrowings                                620        2,294
    Long-Term Debt                                    85,000       90,000
    Other Liabilities                                  9,140        8,525
                                                    --------     --------
         Total Liabilities                          $610,290     $589,338
                                                    --------     --------
    Shareholders' Equity:
    Common Stock, par value $0.01 per share, 
     10,000,000 shares authorized; 7,317,560 
     shares issued; 6,017,582 and 6,018,154 shares
     outstanding, respectively                            73           73
    Surplus                                            9,233        9,233
    Accumulated Other Comprehensive Income,
     net of tax                                        4,316        2,476
    Retained Earnings                                 88,969       87,999
    Less Treasury Stock: 1,299,978 and
     1,299,406 shares at cost, respectively          (21,127)     (21,117)
    
         Total Shareholders' Equity                  $81,464      $78,664
                                                    --------     --------
    
         Total Liabilities and Shareholders' 
          Equity                                    $691,754     $668,002
                                                    ========     ========
    
    
    
                  UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (Dollars in Thousands, Except Per Share Data)
    
                                  Three Months Ended      Twelve Months Ended
                                      December 31,            December 31,
                               2009             2008      2009           2008
                               ----             ----      ----           ----
                                     (Unaudited)       (Unaudited)
    INTEREST INCOME:
    Interest and Fees 
     on Loans                 $9,645          $10,421    $38,795       $43,281
    Interest on Investment
     Securities                2,111            2,294      8,679         8,835
                              ------           ------     ------        ------
       Total Interest Income  11,756           12,715     47,474        52,116
                              ------           ------     ------        ------
    
    INTEREST EXPENSE:
    Interest on Deposits       2,066            2,933      9,581        13,107
    Interest on Borrowings       826              938      3,619         3,805
                              ------           ------     ------        ------
      Total Interest Expense   2,892            3,871     13,200        16,912
                              ------           ------     ------        ------
    
    NET INTEREST INCOME        8,864            8,844     34,274        35,204
                              ------           ------     ------        ------
    
    PROVISION FOR
     LOAN LOSSES               4,244            3,434      9,101         8,901
                              ------           ------     ------        ------
    
    NET INTEREST INCOME AFTER
     PROVISION FOR 
     LOAN LOSSES               4,620            5,410     25,173        26,303
                              ------           ------     ------        ------
    
    NON-INTEREST INCOME:
    Service and Other Charges
     on Deposit Accounts         721              837      2,871         3,285
    Credit Life Insurance
     Income                      351              466        997         1,020
    Other Income                 312              586      3,927         2,158
                              ------           ------     ------        ------
      Total Non-Interest
       Income                  1,384            1,889      7,795         6,463
                              ------           ------     ------        ------
    
    NON-INTEREST EXPENSE:
    Salaries and Employee
     Benefits                  3,419            3,335     13,594        12,976
    Occupancy Expense            489              435      1,901         1,838
    Furniture and Equipment
     Expense                     348              341      1,274         1,405
    Other Expense              2,766            2,640      9,883         9,054
                              ------           ------     ------        ------
      Total Non-Interest
       Expense                 7,022            6,751     26,652        25,273
                              ------           ------     ------        ------
    
    (LOSS) INCOME BEFORE 
     INCOME TAXES             (1,018)             548      6,316         7,493
                              ------           ------     ------        ------
    
    (BENEFIT FROM) PROVISION 
     FOR INCOME TAXES           (604)             (35)     1,562         2,123
                              ------           ------     ------        ------
    
    NET (LOSS) INCOME          $(414)            $583     $4,754        $5,370
                              ======           ======     ======        ======
    
    BASIC AND DILUTED NET
     (LOSS) INCOME 
     PER SHARE                $(0.07)           $0.10      $0.79         $0.89
                              ======           ======     ======        ======
    
    DIVIDENDS PER SHARE        $0.11            $0.27      $0.60         $1.08
                              ======           ======     ======        ======

SOURCE United Security Bancshares, Inc.

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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